Brand extension has been the new and popular way of introducing new brands or new products into the market. Many firms are benefitted from adopting the strategy of Brand Extension. Only when the parent brand supports the brand extension, it would make a successful extension and also strengthens the parent brand. Developing a new brand requires more investment than creating a brand extension so, due to this firms use a brand extension strategy to enter new markets. Company makes extension of brand which is popular in market and also the brand which have a good name and a positive image in the view of customer. Companies uses this as a strategy to decrease the risk of product failure after lunching the extended brand.

Keywords: Brand Extension, New Brands, New Products, Parent Brand, Risk of Product Failure.