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Category: Brand Extension

Brand Extension

Brand Diversification: Extend With Caution

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In the search for more revenue, many brands seem keen to broaden their mandate or redefine the sector they see themselves as now being part of. But the hunt for diversified revenue streams comes with its own list of dangers and the most obvious caution is this: don’t lose the plot. Don’t spread your brand so wide, generalize your position so much or shift your emphasis so far from where you’ve been that you lose credibility, authority or distinction in the minds of your customers.

I watch with concern as companies make plans to “lifestyle” their brands, shifting the emphasis of what they do in order to introduce the new product lines that they hope will invigorate demand. This is driftnet strategy. It’s based on the belief that if you trawl wide enough across a broad enough front with a general enough message you’ll end up with a bigger catch than what you’re hauling in right now. Dig a little deeper into the plans and it becomes clear that the sectors brands often wish to rush into are already crowded (which brand marketers justify as proof of demand) and the rationale for this move is based on perceived interest/opportunities that are exactly that – perceptions – and that should, with rigorous appraisal, be dismissed as optimistic rather than substantial.

You don’t automatically become a better brand, a bigger brand or a more attractive brand by walking away from, or downplaying, the equity you’ve worked so hard to build.

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Brand Extension

Brand Advantage Through Brand Extension

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Not too long ago here on Branding Strategy Insider, one of my co-authors, Nigel Hollis shared three basic ways a brand can change the brand game to its advantage:

1. Expand the category

2. Disrupt the category

3. Exceed the category

I would argue there is a fourth strategy to go along with expanding, disrupting and exceeding the category. That would be to “extend” the category.

Take Colgate for example. Not only have they been successful in disrupting the category by adding Colgate® Total® to their line of toothpaste, but they have been successful in “extending” the category with products such as Colgate® Peroxyl®, a rinse for minor mouth irritations and Colgate® Orabase®, a pain relieving paste. By extending the brand experience, Colgate also extends the consumer experience while increasing their overall brand awareness through additional shelf space in the retail aisle.

There are several ways for a company to extend a brand. A company can choose to manufacture or source (often from less expensive manufacturers overseas) the new category of product. These two methods require existing sales and marketing teams to drive demand and customer commitment. However, if the company is not familiar with the extended category, they will have to invest in building a minimal level of competence or risk a possible failed brand extension.

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Brand Extension

Brand Extension And Perceived Risk

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We tend to judge the likelihood of whether a brand extension will work on the compatibility that consumers will feel between the brand they know and the extension they are being asked to accept. As Brad VanAuken has observed, “Any brand extension into a new product category must reinforce one of those primary associations without creating new negative, conflicting or confusing associations for the brand. If this rule is followed, the brand extension will actually reinforce what the brand stands for.” In fact, providing that association is strong, Nigel Hollis says, “the fit between the brand and the category does not need to be based on a direct application of the brand’s functional credentials”.

The Need For Structure

Now, in a new study, Wharton marketing professor Keisha Cutright and co-authors James R. Bettman and Gavan J. Fitzimons of Duke University, contend that, alongside the quality of the product, the way it is marketed and the fit with the current identity, consumer psychology also has a role to play in whether a brand extension flies or flops. Specifically, the team identifies people’s feelings of control.

If people are in a situation or a position where they feel less in control than normal, they may be less inclined to stray from the tried and true. According to Professor Cutright, when people experience a lack of control in some aspect of their life, they yearn for greater structure. For this reason, they may see a brand extension as a step too far.

Control Is Subjective

Communication, the marketers found, was critical to consumers retaining that precious sense of being in control. Cutright and her colleagues also identified that certain demographics, such as older consumers and people on low incomes, feel less in control and, one would assume, are therefore less likely to ‘experiment’ with an extended brand offering. That same sense of lack of control applies to people who have experienced uncertainty, and a corresponding lack of structure, through a natural disaster for example, and even for employees who, faced with uncertainty over their jobs, may hesitate to push the boundaries by suggesting brand extension opportunities.

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Brand Architecture Brand Extension Naming

Ten Reasons To Revisit Your Brand Architecture

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Brand Architecture Strategy

If you have ever named a boat, a pet or a child, you know how difficult it can be to choose the right name. Despite the importance of the decision, the process seems hit-and-miss and there seem to be few guidelines for getting it right. After agonizing over lists of alternatives, you reject all but one, with no sense of certainty. Later the name seems inevitable – how could you have considered any other name?

The Challenge of Naming

The naming challenge is compounded in a business environment, where anointing a company with a name is likely to be just the first of many labeling decisions. Products, business units, specific services, marketing programs, features, line extensions, apps, web sites and more all need monikers. Each decision has implications for future decisions, so it’s important to have a plan or ‘rules’ to guide your choices and avoid confusing customers.

Although critically important to brand health and company value, it can be difficult to create the rules for naming brand entities, and for specifying the relationships among them. Here is a partial list of the kinds of challenges faced:

  • When is it desirable to extend an existing brand and when is a new brand required?
  • How should a new brand be linked to the parent? Should the relationship be explicit or kept in the shadows?
  • Which is better, a descriptive name or a fanciful name?
  • When should a name be retired?
  • When should a feature be branded?
  • Should different brands from the same company have different web sites?
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Brand Extension Brand Licensing

Brand Extension: Friend And Foe Of Strong Brands

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Brand Extension CAT Footwear Mike Rowe Wolverine World Wide

Brand extension is the way to get the best financial return out of a strong brand. By extending a known and much loved brand into new countries and categories, the brand owner reduces risk and maximizes the return on their investment. But extension is not without risks of its own. These days I can’t help wondering if many brands are extended too far, too fast.

Extension into new product categories poses an interesting challenge for a strong brand. There needs to be a good fit between what the brand stands for and what people look for from the new product category. But the fit between the brand and the category does not need to be based on a direct application of the brand’s functional credentials. The fit can be more conceptual. Sometimes this makes for giant leaps into categories not remotely connected to the brand’s origins.

A recent example that comes to mind is the Dirty Jobs heavy duty cleaning products spawned by the “Dirty Jobs” show on the Discovery Channel cable network. In each program, the show’s host, Mike Rowe, explores a dirty job, and attempts to complete the same task as the people whose job it really is. The fit between the well-known TV show and a line of cleaning products makes good sense. After all, Mike doesn’t just get dirty he has to clean up somehow.

A similar “leap of faith” extension would be Wolverine World Wide’s Cat Footwear, the global footwear licensee of Caterpillar® Inc. There is no real functional connection between giant, yellow, earthmoving equipment and footwear, but the connection is there. From durability to traction the benefits of machines and boots have a lot in common. The conceptual linkage has allowed a small collection of work boots to grow into a wide range of casual footwear selling in more than 150 countries worldwide.

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