WWE, formerly the World Wrestling Federation (WWF; 1982-2002) and World Wrestling Entertainment (2002-2011), currently promotes its core business of professional wrestling through two "brands" (that are intended to operate on television as scripted independent branches of the company) named after their two major television shows Raw and SmackDown. Upon the completion of the Monday Night Wars in 2001, a brand rivalry between promotions: World Championship Wrestling (WCW) and the WWF, the latter company emerged superior. This eventually led to the WWF acquiring all assets of WCW and Extreme Championship Wrestling (ECW; the third largest promotion in the United States during this point in time) through separate buyouts that included the employees (on and off-air talent) from both companies. With the acquisition of new talent, the WWF's already large roster was doubled in size. In order to allow equal opportunity to all roster members, the company endorsed a brand extension to have the WWF represented and promoted with two "brands" named after the promotion's two primary television programs: Raw and SmackDown.

Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category.

A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand equity from basic baking soda into the oral care and laundry care categories. By emphasizing its key attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was able to leverage those attributes into new categories with success. Another example is Virgin Group, which was initially a record label that has extended its brand successfully many times; from transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores.