14 of the Most (& Least) Profitable Model Extensions to Encourage Your Personal

0
70


Hailee Steinfeld is especially recognized for her performing chops, however her singing talents bolster her esteem as a performer and stretch her model to extra audiences and followers. And identical to her enterprise into music, corporations usually lengthen their model to develop new merchandise in industries the place they don’t have any market share.

These initiatives are referred to as model extensions, they usually permit corporations to leverage their brand awareness and fairness to create extra income streams.

Download Now: Free Brand Building Guide

On this article, you’ll study extra about what a model extension is and see examples of extension concepts that might encourage you.

Skip to:

What’s a model extension?

Model extension is a marketing strategy that includes an organization utilizing its well-established model identify or picture to introduce a brand new product or product classes to its buyer base.

This technique works finest when the brand new product class is said to its guardian class and is one thing customers and prospects need.

Many corporations use model extensions as a result of it permits them to leverage their guardian model’s model consciousness and authority to achieve new demographics and open up new gross sales channels.

One firm that does model extensions effectively is Apple.

Though Apple began as a expertise firm that makes solely computer systems (Macs), it quickly prolonged its product line to incorporate music gamers (iPods), cell units (iPhones), and tech equipment (Apple Watch and Earpods). Regardless that all these new merchandise are totally different, the extension works as a result of Apple did not drift too removed from its guardian product class. As a substitute, it leveraged its model identify to make penetrating the market successful.

What are the varieties of model extensions?

Relying on the kind of prospects you may have and what you need to obtain as a brand, it’s essential to resolve which model extension technique is correct in your firm.

Listed below are 5 totally different extension methods that might be just right for you.

1. Line Extension

A line extension is when a guardian model launches a brand new product line in a class already accustomed to its prospects. With a line extension, manufacturers do not should create new classes.

A superb instance of a line extension is when comfortable drink corporations introduce new flavors to their present drink lineup. Different examples may embody introducing new scents, sizes, and colours to a product line.

2. Complementary Product Extension

One other means a longtime model can lengthen itself is by creating complementary merchandise for its most important merchandise.

For instance, Nike, a sports activities model, creates numerous gear, wears, and different sport-related merchandise that complement one another. We have additionally seen toothpaste corporations use such a extension for his or her unique model by including toothbrushes and different oral care merchandise as new classes.

3. Buyer Base Extension

An organization can create a branding extension for itself by launching totally different product classes for a single demographic.

Procter & Gamble (P&G), for instance, does this effectively with the Pampers model. Though P&G focuses on numerous merchandise, the Pampers line focuses on making merchandise like diapers and wipes for infants.

4. Firm Authority Extension

Corporations with excessive ranges of authority of their sector can leverage this authority to create new merchandise.

For example, Samsung has an enormous model identify within the expertise house that enables them to launch totally different merchandise in associated classes with a measure of success. And due to its model picture, most customers would not thoughts utilizing a brand new product, whether or not it is an air conditioner or a cell phone.

5. Model Life-style Extension

Who would have thought a tequila line from an power firm would sell out within a few hours? Effectively, Tesla did it. And it was primarily as a result of persona and life-style of its CEO, Elon Musk.

Nonetheless, Elon and Tesla usually are not the one ones to make use of a celeb’s life-style to increase an present model. Different situations embody Adidas/Kanye West’s Yeezy lineup and Fenty (a model below LVMH) with Rihanna.

Model Extension and Model Well being Measures

Earlier than you may take into consideration extending your model, it’s vital to make it possible for your model’s present iteration is in good well being. What does that imply? Model well being refers to a model’s means to ship on its worth proposition and promise. Earlier than you begin launching a brand new services or products, make it possible for prospects are delighted together with your present choices.

Subsequent, we’ll dig into what precisely you’ll must assess model well being.

Model Well being Monitoring

There isn’t only one metric obtainable to diagnose model well being. As a substitute, you’ll must view a wide range of metrics to get a great image of the place your model stands. Listed below are a couple of metrics it’s best to already be monitoring that can show you how to assess model well being.

  • Net Promoter Score (NPS): Discover your NPS by sending a survey asking prospects in the event that they’d suggest your service or product to a pal utilizing a scale of 0 (doubtless) to 10 (unlikely). Clients who rated you at a 9 or 10 are thought of “promoters.” Those that rated 0 to six are “detractors,” with these rated 7 to eight thought of “passive.”
    Brand Health Measures: NPS Score
  • Customer Satisfaction Score: Just like NPS, your buyer satisfaction rating can also be a survey query. This one asks prospects to charge their satisfaction together with your service on a scale of 1 (very unhappy) to five (very happy).
  • Model Recall: Model recall is used to measure model consciousness. Your survey query would ask one thing just like “What firm/model involves thoughts while you consider ?”
  • Share of Voice: Share of voice permits you to evaluate model consciousness throughout a number of advertising and marketing channels towards your opponents.
  • Buy Intent: This survey query asks prospects how doubtless they’re to purchase your model on a scale from not prone to very doubtless. To seek out the rating, whole the variety of prospects that answered “very doubtless” and divide that quantity by the full variety of respondents.

The metrics above are key to measuring model well being. With them, you may monitor your:

1. Model Consciousness

Surveys and focus teams will show you how to monitor each brand awareness and model notion. Instruments like SurveyMonkey could make running surveys a cinch, and permit your staff to tug much-needed buyer insights.

2. Model Loyalty

Utilizing each your NPS and buyer satisfaction rating can assist you gauge model loyalty. In case your prospects wouldn’t suggest your services or products to a pal, it’s an indication you may have extra work to do in constructing belief and delivering in your worth proposition.

3. Social Media Listening

It might sound creepy however on this occasion of social media listening, spying in your prospects is an efficient factor. You’ll be monitoring your model’s social channels for direct suggestions and mentions of your model to see simply what prospects are saying about it on-line. Use listening instruments to gather buyer suggestions or reply on to folks mentioning you on-line. The extra you find out about your prospects, the higher you’ll be capable to serve them.

4. Messaging Targets

Utilizing the metrics above may also be sure that your advertising and marketing technique corresponds to the right customer segment. Your prospects can have totally different ache factors and wishes and can be at totally different factors of their buyer journey. As such, your messaging shouldn’t be one dimension suits all. You’ll want to make sure your advertising and marketing efforts goal the proper prospects on the proper time for his or her particular scenario.

For instance, you could possibly group prospects by product pages they’ve visited previously and ship them a advertising and marketing e-mail mentioning that particular product. In case your messaging just isn’t aligned with the proper buyer phase, you threat offering a poor buyer expertise — which may derail your model extension efforts.

Do not forget that buyer expertise and model well being are linked. You received’t efficiently pull off a model extension with out making certain each are in a great place.

What separates the very best model extensions from the worst?

Traditionally, probably the most profitable model extensions are those that intently tie to the corporate’s core model or flagship product, like Gerber’s child garments and Dole’s frozen fruit bars. By coming into tangential markets that may protect their model’s distinctive associations and perceived high quality, corporations can launch new merchandise that buyers intuitively perceive the advantages of, although they’ve by no means seen them on a shelf.

On the flip aspect, an organization can even exploit its model and, in flip, break it.

Creating a brand new product in a market that isn’t intently tied to your flagship product or core model, like what Zippo did with its girls’s fragrance, may trigger some issues.

It may lead to undesirable associations to your model and weaken its present associations and harm your established merchandise’ perceived high quality.

So whether or not you’re a SaaS firm or a client model eager about extending your product line, take a look at our checklist of probably the most and least profitable model extensions to assist encourage your individual.

Examples of Good Model Extensions

1. Michelin

brand extension example: Michelin GuideImage Source

While you hear the identify Michelin, do you consider top-rated eating places or meals? Maybe each? Michelin constructed their empire manufacturing automobile tires. Within the late 1800s, the auto trade was nonetheless in its infancy — on the time there have been fewer than 3,000 automobiles in France — the Michelin firm’s residence base.

In an effort to assist drivers plan their journeys and increase automobile gross sales, Michelin rolled out a information that includes gasoline stations, maps, change a tire, and different helpful info. Nonetheless, it wasn’t till the Twenties that the Michelin Information took off. Because the information’s reputation grew, thriller diners had been despatched to numerous eating places to supply evaluations and a star score system was carried out.

Now the Michelin Information is a must have reference for foodies and vacationers, protecting eating places in roughly 41 nations.

What we like:

Michelin’s model extensions is without doubt one of the riskier ones on this checklist, nevertheless it’s fairly spectacular. They took two seemingly unrelated industries and made it work — changing into the gold normal of restaurant scores.

2. Reese’s Puffs Cereal

Reese's Brand Extension: Cereal

Image Source

Reese’s Puffs was my favourite cereal rising up, so I may be just a little biased right here. However with all of the chocolate-flavored cereal round within the mid-90s, Reese’s Peanut Butter Cup’s entrance into the cereal market was good and pure.

Right this moment, with some advert campaigns highlighting how children can eat their favourite sweet for breakfast, over 6 million customers eat 1 to 4 servings of Reese’s Puffs per week according to Statista.

What we like:

Reese’s advertising and marketing efforts obtained dad and mom on board with permitting their youngsters to eat sweet for breakfast.

3. Meals Community’s Kitchen Gadgets

Food Network Kitchen Items Brand Health Measures

Image Source

With an viewers of over 13 million people, Meals Community stays one of many world’s greatest TV channels.

Contemplating that many individuals had been excited by what it does, Meals Community noticed a chance to increase its model by partnering with Kohl’s Company to launch its kitchen and cookware merchandise.

What we like:

The partnership was successful as a result of Meals Community served a particular viewers with what they wanted.

4. Gillette’s Razors & Shaving Provides

Gilletes Razors BRand ExtensionImage Source

Gillette’s extension into making shaving merchandise alongside its security razor blades was a sensible transfer. Why? It’s arduous to think about somebody shaving with out utilizing shaving cream, foam, or gel?

What we like:

It was virtually a necessity for Gillette to provide this complementary good for its flagship product.

5. Star Wars Motion Figures

Star Wars Action Figure Brand ExtensionImage Source

Though Star Wars was common amongst adults when the film was first launched in 1977, many youngsters did not prefer it as a lot.

So how did the franchise change into common at this time? The Star Wars model prolonged into the toy market. With motion figures from characters within the films, Star Wars was capable of entice a brand new viewers, construct model consciousness and make a ton of gross sales within the course of.

What we like:

Star Wars was capable of faucet into its devoted fan base and market toys to not simply die arduous followers, however entice new ones with the addition of merch.

6. Colgate’s Toothbrush

Colgate Brand ExtensionImage Source

Similar to Gillette’s razors and shaving merchandise, Colgate’s toothpaste and toothbrush are complementary items. However in contrast to the previous instance, you actually want a toothbrush to make use of toothpaste. In any other case, you may’t brush your tooth.

What we like:

For my part, Colgate’s determination to enter the toothbrush market was a necessity and one among its finest strikes, serving to it safe the third-largest slice of the oral care market.

7. Honda’s Garden Mowers

Honda Brand ExtensionImage Source

Honda’s line of lawnmowers won’t elicit probably the most pleasurable recollections of my childhood. Nonetheless, its entrance and success in a saturated market communicate volumes for an organization primarily recognized for promoting automobiles.

What we like:

By leveraging its experience in small motors to enter the lawn mower market in 1978, it now boasts the seventh-largest slice of market share in the global lawn mower industry.

8. Sunkist’s Vitamin C Tablets

Sunkist Brand Extension

Image Source

That includes orange juice as its flagship product, Sunkist’s model has associations with oranges, well being, and power. Sunkist produced vitamin C tablets that spawned a complete arm of enterprise devoted to nutritional vitamins and dietary supplements to each bolster and leverage this affiliation concurrently.

What we like:

Sunkist was capable of parlay their model notoriety for orange juice into vitamin C dietary supplements. It is an extension that’s on model since oranges are an incredible supply of vitamin C.

Examples of Unsuccessful Model Extensions

Not each model extension generally is a hit. Listed below are a couple of examples of manufacturers which have made model extension errors — and the teachings you may study from them.

9. Cadbury’s On the spot Mashed Potatoes

Cadbury Brand ExtensionImage Source

Cadbury is understood for making high-end chocolate and sweet. When it began producing low-end meals merchandise, like instantaneous mashed potatoes, it’s not shocking to study that its affiliation with the best goodies weakened.

Smash, its instantaneous mashed potato model, truly reached mainstream success, nevertheless it was on the expense of decreasing its flagship product’s perceived high quality. Cadbury eventually sold Smash in 1986, over 20 years after introducing its instantaneous mashed potatoes to the world.

What went mistaken:

Cadbury’s meals merchandise had been less than the identical high-quality requirements as its sweet and misplaced buyer belief within the model.

10. Levi’s Tailor-made Classics

Levis Brand ExtensionImage Source

When Levi’s launched Tailor-made Classics within the early Nineteen Eighties, it already owned a big share of its goal market, so it needed to enter some new markets to maintain its excessive development charge.

Certainly one of these markets was males’s fits, however since its model was closely related to an informal, rugged, and outdoorsy life-style, Levi’s new product line conflicted with its core id and did not catch on.

What went mistaken:

Shoppers trusted Levis to provide sturdy clothes that might endure the wrath of mom nature, however, for that very purpose, they did not belief them to ship high-end tailor-made fits.

11. Pillsbury’s Frozen Microwave Popcorn

Pilsbury Brand ExtensionImage Source

Regardless that Pillsbury is understood for producing foodstuffs, its frozen microwave popcorn couldn’t compete with Orville Redenbacher or Common Mills’ Pop Secret as a result of its product positioning of being “frozen for freshness” didn’t provide sufficient worth. Positive, sticking your popcorn within the freezer is handy (I assume), however that profit pales compared to having fun with a better-tasting popcorn.

What went mistaken:

Frozen popcorn was a tough promote — particularly when customers had better-tasting popcorn choices from opponents.

12. Samsonite’s Outerwear

Samsonite Brand Extension

Image Source

Whereas Samsonite’s outwear is extra modern than Levi’s Tailor-made Classics, it nonetheless suffers from the identical downside as Levi’s failed product line — the model extension doesn’t align with Samsonite’s core id.

Samsonite is understood for making high-end baggage, suitcases, and enterprise luggage. So except it thinks its flagship product’s elegant traits can switch to a totally unrelated product line, its enterprise into the clothes trade may diminish its brand equity. That is most definitely the explanation Samsonite doesn’t checklist outerwear on its web site anymore.

What went mistaken:

Samsonite was unable to switch its popularity for creating glossy baggage to clothes.

13. Arm & Hammer’s Underarm Deodorant Spray

Arm n Hammer Brand Extension

Image Source

Arm & Hammer has efficiently prolonged its model from an odor-neutralizing baking soda to laundry detergent, carpet deodorizer, and even cat litter. However one product line that isn’t the very best match for its model is an underarm deodorant spray. Making use of a product that shares an ingredient with heavy-duty cleansing provides to such a delicate a part of the physique doesn’t jive effectively with customers.

What went mistaken:

Whereas Arm & Hammer is understood for making glorious cleansing merchandise, prospects simply could not image themselves utilizing its merchandise on their our bodies.

14. Colgate Kitchen Entrees

Colgate Brand Extension

Image Source

Though Colgate did effectively by extending its model and creating totally different oral care merchandise, it did not enter the meals house.

This model extension was a failure primarily as a result of promoting frozen meals was in sharp distinction with Colgate’s model id. Since its viewers already related the model identify with dental care, it was arduous for them to see the corporate otherwise.

What went mistaken:

Pivoting from oral care to meals was not a swap that obtained buy-in from prospects.

Develop Your Model

Whereas a model extension has its advantages, you additionally must know that extending your model into unchartered waters would additionally include challenges.

So earlier than you implement any extension technique for your small business, guarantee it is in keeping with what your preferrred client desires.

Does it make any logical sense to begin advertising and marketing a brand new product to my prospects? What profit would a client derive from this new model or product? Have I completed sufficient analysis to understand how a model extension would have an effect on my unique model?

When you reply these questions, then you can begin eager about efficient methods to develop your model.

Editor’s be aware: This text was initially revealed in June 2021 and has been up to date for comprehensiveness. 

brand consistency



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here