Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, disposable pen, lighter, and razor maker Bic introduced perfume under the Bic brand name and it failed quickly. This innovation strategy is known as a
A) radical invention.
B) product line extension.
C) disruptive innovation.
D) product deletion.
E) brand extension.

Question

Quizplus · Accepted Answer

Brand extension involves using an existing brand name to launch a product in a new category, which is what Bic attempted with their perfume.

Using an Existing Brand Name to Introduce a Product That