Nike is a manufacturer of sports shoes and apparel. However, the company has begun branching out into several entirely new product categories such as MP3 players. In this scenario, Nike has decided to pursue a strategy of _____.
A) brand equity
B) line extension
C) cobranding
D) brand extension

Question

Quizplus · Accepted Answer

Brand extension refers to a marketing strategy in which a company extends its brand name into a new product category. Nike branching out into a new product category such as MP3 players is an example of brand extension.

Nike Is a Manufacturer of Sports Shoes and Apparel