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In today's world, where the consumer is constantly exposed to more and more brands in almost any kind of environment, the importance of exploiting those brands which have managed to reach the consumer's mind and gained a strong position has increased. A majority of new product launches are extensions of existing brands. Brand extensions can be seen as a less expensive as well as less risky way to satisfy the consumer's demands and needs within several segments by providing several products under the same brand rather than creating a new name for every new product. Even though the extension of brands has become a popular strategy, it can still be somewhat of a troublesome affaire to extend the brand without losing its original value. A "very good" brand extension not only creates additional cash-flow but also enhances the brand name. Thus, the purpose of this work is to identify some factors that enable enhanced brand equity through category brand extension. A brand extension is when an existing brand name is applied to a product category that is new to the firm.