Brand stretching uses a strong brand's recognition to launch products in completely different categories. It leverages existing brand equity to enter new markets.
Virgin Group stretched from music to airlines, mobile, and banking. Yamaha makes motorcycles, musical instruments, and electronics. These brands successfully transferred trust across unrelated categories.
Successful brand stretching reduces marketing costs for new product launches. However, failed stretching can damage the parent brand. The stretch must make sense to consumers and maintain brand credibility.