The thesis investigates the topic of brand extension and its importance in the business practice of companies. The theoretical part of the research outlines the key theoretical aspects related to brand and brand extension. The practical part investigates the case study of Starbucks brand extension and compares it with other famous brand extension cases. The paper illustrates how Starbucks brand extension from coffee onto the ice cream market had been successful on the initial stage, and how it failed in the long run, analyzing the key advantages and drawbacks of Starbucks brand extension activities. The thesis outlines how Starbucks brand extension could have been improved.