How Brands Diversify: Part 1 – Brand Extensions – Podcast Ep. 34

How Brands Diversify: Part 1 – Brand Extensions – Podcast Ep. 34

Brand Extensions

On this episode of the NerdBrand Podcast, we’re diving into how brands diversify. This episode kicks off a three-part series starting with Brand Extensions. 

What’s A Brand Extension? 

A brand extension (sometimes called a category extension) is when a brand uses its established name or an established product line to launch a new product or category.

The idea is of course to leverage the brand reputation and loyalty to catapult the new product.

In other words, the existing brand is a low-cost marketing tool.

Brand extensions are often introduced with the goal of opening a new revenue stream with a complementary product, improving the customer experience, or solidifying a competitive advantage in the market.

Let’s look at some examples we talk about on the episode.


Tesla Tequila: Yes, from space ships, electric cars, to now liquor.

  1. Sold for $250 a bottle.
  2. Sold out in three days.
  3. Looks of the bottle? Opinions? Mitch says aftershave bottle.


Fingernail polish: WUT? No seriously. Launched in the Hong Kong market.

Fire Logs: Yes – this just gets weirder. Make your house smell like KFC when you do not have KFC.

KFC Crocs: Ok, just no. Fried Chicken and feet are not allowed in the same sentence or thought. 

Brand Extensions


  1. Going from Search to Email? A big win!
  2. Going from Search to Social? Nah, man. YET THEY KEEP TRYING!


Part Two: Brand Dilution

Brand dilution is the result of trying to push too far on an extension, to the point that the original market perception of the brand decays.

Join us next week as we discuss brands that have faced dilution via faulty brand extensions.

Check out all our podcast episodes here.

If you missed the last episode about telling a compelling brand story, you can listen here, and remember…

Keep your NerdBrand strong!

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I'm the Co-founder and CEO at NerdBrand. I've spent over 12 years in digital advertising providing strategic direction for businesses to build better websites, brands, and messaging, with an eye for improving online presences and laying a foundation for future growth.