What is the brand stretching?

What is Brand extension and Brand stretching?

• Answer:

  Brand extension: branding a new product, or re-branding an old product, with an existing brand of another category, thus expanding the brand family. This can also happen through licensing the brand to a specialized manufacturer. Example: All big fashion brands licensing their brand for perfume and sunglasses; Marlboro expanding into textiles; Ferrari expanding into watches, Virgin (cola, airline, cinema, financial). Brand streching refers to a company extending a brand under own management, which excludes licensing.