Certified Professional Category Analyst (CPCA) Practice Exam 2025 - Free CPCA Exam Practice Questions and Study Guide

The introduction of Soft Touch shampoo by a company that already produces Soft Touch perfume is an exemplary case of brand extension. This concept refers to leveraging an existing brand’s name to introduce a new product in a different category. In this scenario, Soft Touch, known as a perfume, is extended into the personal care category with the launch of a shampoo.

This strategy capitalizes on the established brand equity and recognition that Soft Touch has achieved in the perfume market, allowing the company to attract loyal customers to the new product. By utilizing the same brand name, the company can also benefit from consumer familiarity and trust, potentially leading to increased acceptance and sales of the new shampoo. This approach is common among companies looking to diversify their product offerings while maintaining brand continuity.

Other choices may seem relevant but pertain to slightly different concepts. Incremental contribution usually relates to small enhancements within the same product line rather than introducing a new product category. Up market stretch refers to moving into a higher-end market, which doesn't apply here since both products are in the personal care realm but simply tap into different segments. Line extension typically means variations within the same product line (like adding different scents to an existing shampoo), which isn't the case here as the products belong to distinct categories. Thus,