A brand extension is a new product or service launched under an existing, established brand name, leveraging that brand's existing recognition and trust rather than building a new identity from scratch.
It works best when the new offering feels like a logical, credible expansion of what the audience already associates with the brand — a stretch too far outside that association can dilute trust in both the original brand and the new offering.
Deciding between a brand extension and a distinct sub-brand or entirely new identity usually comes down to how closely the new offering's audience and positioning overlap with the existing brand's.