IntroductionWhen a company innovates and develops a new product, a strategy is needed to sell the product effectively. Furthermore, the company should create unique features for the product so that customers are attracted to the product. These unique features are known as branding. There are many companies who started to introduce a new product using the main brand to the consumers instead of developing a new brand for the new product, as they believed that this can help in getting more sales. This strategy is called brand extension strategy; the process of extending into several new classes of product categories using the company's established brand name. However, not all companies successfully achieve the same results, some companies are losing customer loyalty, and even worse, they are damaging the company's brand because they have not applied the brand extension strategy correctly. In this report, an in-depth analysis of the brand extension strategy will be conducted; characteristics, advantages and disadvantages, types and principles of brand extension strategy will be explained. Additionally, a study will be conducted on well-known companies that have used the brand extension strategy. Finally, the conclusion will be given after the analysis. The purpose of this report is to conduct an in-depth, high-quality overview of the literature on brand extension strategy. By doing this, it is expected that readers will gain a better understanding of how important it is to know the exact way to use the brand extension strategy and will use the strategy correctly. What is brand extension strategy? Before the brand extension strategy is explained and analyzed, the very definition of "brand" is needed to get a better insight...... middle of the document ......://www.brandextension. org/definition.html. [Accessed 10 January 2014].NaminAiddin T and MoghaddarAkbar (2013). The impact of the brand extension on the new product from the customer's perspective. International Journal of Applied and Basic Science Research, pp 789-800 Ranjbarian B, Fathi S, Jooneghani RBN (2013). Determining the effect of brand extension strategies on consumer attitudes toward new products in the sports apparel market. International Journal of Applied and Basic Science Research, 5.Sanjay KP and Anand KJ (2003). Consumer evaluations of brand extensions: Evidence from India. International Academy of Business and Economics.Utama B. Brand Extension The Benefits and Pitfalls. Bloomhead, Jakarta, Indonesia.Vukasovič T (2012). New product launch with brand extension strategy. International School of Social and Business Studies, Celje, Slovenia.