High Flier, a clothing line, acquired a music company and entered the music retail industry.Since High Flier was known in the market for its high quality, it hoped that perception would carry over to its new product as well.This is an example of:

Question

Quizplus · Accepted Answer

This is an example of brand extension, where a company uses its established brand name to launch a new product in a different category, hoping to leverage its existing brand reputation.

High Flier, a Clothing Line, Acquired a Music Company and Entered