Brand Extension Matrix

The Brand Extension Matrix is a strategic tool used to evaluate potential brand extensions. It helps businesses determine the feasibility and potential success of extending a brand into new product categories or markets by categorizing extensions based on their fit with the existing brand and the level of innovation required.

At a very high level, the Brand Extension Matrix is used in the context of business, marketing, strategy.

Want to try this template?
Other Templates

What is the Brand Extension Matrix?

A visual explanation is shown in the image above. The Brand Extension Matrix can be described as a matrix with the following quadrants:

  1. Core Extensions: High fit with the existing brand and low level of innovation required. Example: A sportswear brand launching a new line of running shoes.
  2. Adjacent Extensions: High fit with the existing brand but high level of innovation required. Example: A tech company developing a new wearable device.
  3. Peripheral Extensions: Low fit with the existing brand and low level of innovation required. Example: A beverage company introducing a line of snacks.
  4. Transformational Extensions: Low fit with the existing brand but high level of innovation required. Example: A luxury fashion brand entering the automotive market.

What is the purpose of the Brand Extension Matrix?

The Brand Extension Matrix is a valuable framework for businesses looking to expand their brand into new product categories or markets. This 2x2 matrix evaluates brand extensions based on two key dimensions: 'Fit with Existing Brand' and 'Level of Innovation Required'.

The horizontal axis represents the 'Fit with Existing Brand', ranging from low to high. A high fit indicates that the new product or market aligns closely with the existing brand's identity, values, and customer expectations. A low fit suggests a weaker alignment, which could pose risks to brand equity.

The vertical axis represents the 'Level of Innovation Required', ranging from low to high. A high level of innovation indicates that the new product or market requires significant changes or new capabilities, while a low level of innovation suggests that the extension leverages existing capabilities and resources.

By plotting potential brand extensions on this matrix, businesses can identify four distinct quadrants:

  • Core Extensions: High fit with the existing brand and low level of innovation required. These extensions are the safest and most likely to succeed.
  • Adjacent Extensions: High fit with the existing brand but high level of innovation required. These extensions can be successful but may require significant investment and risk management.
  • Transformational Extensions: Low fit with the existing brand but high level of innovation required. These extensions are the riskiest and may require a complete rebranding or new brand creation.
  • Peripheral Extensions: Low fit with the existing brand and low level of innovation required. These extensions are less risky but may not fully leverage the brand's strengths.

Use cases for the Brand Extension Matrix include evaluating new product ideas, assessing market expansion opportunities, and guiding strategic planning for brand growth.


Want to try this template?

What templates are related to Brand Extension Matrix?

The following templates can also be categorized as business, marketing, strategy and are therefore related to Brand Extension Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

How can I use Brand Extension Matrix in Priority Matrix?

You can get Brand Extension Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Brand Extension Matrix, and get free access to lots of other templates, at templates.app. Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.