Nichepro Technologies, who were mainly into producing personal computers and laptops, have now decided to produce Nichepro health care products. Explain the branding strategy advocated by the company.
Answer: Nichepro Technologies are advocating a brand extension strategy. Brand extensions fall into two categories: 1) line extension and 2) category extension. Marketers use the parent brand to enter a different product category, in category extension. Nichepro is adopting the same strategy by using its parent brand to enter the healthcare products category.