Hailee Steinfeld is principally identified for her appearing chops, however her singing skills bolster her esteem as a performer and stretch her model to extra audiences and followers. And identical to her enterprise into music, firms typically 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, and so they enable firms to leverage their model consciousness and fairness to create extra income streams.
On this article, you’ll be taught extra about what a model extension is and see examples of extension concepts that would encourage you.
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What’s a model extension?
Model extension is a advertising technique that entails 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 expounded to its mum or dad class and is one thing shoppers and prospects need.
Many firms use model extensions as a result of it permits them to leverage their mum or dad model’s model consciousness and authority to succeed in new demographics and open up new gross sales channels.
One firm that does model extensions effectively is Apple.
Though Apple began as a know-how 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). Although all these new merchandise are totally different, the extension works as a result of Apple did not drift too removed from its mum or dad product class. As a substitute, it leveraged its model identify to make penetrating the market successful.
What are the sorts of model extensions?
Relying on the kind of prospects you’ve and what you need to obtain as a model, you’ll want to resolve which model extension technique is true to your firm.
Listed below are 5 totally different extension methods that would give you the results you want.
1. Line Extension
A line extension is when a mum or dad model launches a brand new product line in a class already conversant in its prospects. With a line extension, manufacturers do not must create new classes.
A wonderful instance of a line extension is when comfortable drink firms introduce new flavors to their present drink lineup. Different examples might embody introducing new scents, sizes, and colours to a product line.
2. Complementary Product Extension
One other manner a longtime model can lengthen itself is by creating complementary merchandise for its principal 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 firms use any such extension for his or her authentic 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 makes a speciality of numerous merchandise, the Pampers line focuses on making merchandise like diapers and wipes for infants.
4. Firm Authority Extension
Firms with excessive ranges of authority of their sector can leverage this authority to create new merchandise.
As an example, Samsung has an enormous model identify within the know-how area that permits them to launch totally different merchandise in associated classes with a measure of success. And due to its model picture, most shoppers would not thoughts utilizing a brand new product, whether or not it is an air conditioner or a cell phone.
5. Model Way of life Extension
Who would have thought a tequila line from an vitality firm would promote out inside a couple of hours? Nicely, Tesla did it. And it was primarily because of the character and way of life of its CEO, Elon Musk.
Nevertheless, Elon and Tesla will not be the one ones to make use of a star’s way of life to increase an present model. Different cases embody Adidas/Kanye West’s Yeezy lineup and Fenty (a model beneath LVMH) with Rihanna.
Model Extension and Model Well being Measures
Earlier than you’ll be able to take into consideration extending your model, it’s vital to ensure that your model’s present iteration is in good well being. What does that imply? Model well being refers to a model’s capability to ship on its worth proposition and promise. Earlier than you begin launching a brand new services or products, ensure that prospects are delighted along 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 out there to diagnose model well being. As a substitute, you’ll must view a wide range of metrics to get an excellent image of the place your model stands. Listed below are a couple of metrics it’s best to already be monitoring that may assist you assess model well being.
- Web Promoter Rating (NPS): Discover your NPS by sending a survey asking prospects in the event that they’d advocate your service or product to a good friend utilizing a scale of 0 (probably) 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.”
- Buyer Satisfaction Rating: Much like NPS, your buyer satisfaction rating can be a survey query. This one asks prospects to charge their satisfaction along 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 much like “What firm/model involves thoughts whenever you consider [product]?”
- Share of Voice: Share of voice enables you to examine model consciousness throughout a number of advertising channels towards your rivals.
- Buy Intent: This survey query asks prospects how probably they’re to purchase your model on a scale from not more likely to very probably. To search out the rating, whole the variety of prospects that answered “very probably” and divide that quantity by the full variety of respondents.
The metrics above are key to measuring model well being. With them, you’ll be able to observe your:
1. Model Consciousness
Surveys and focus teams will assist you observe each model consciousness and model notion. Instruments like SurveyMonkey could make working surveys a cinch, and permit your group to tug much-needed buyer insights.
2. Model Loyalty
Utilizing each your NPS and buyer satisfaction rating will help you gauge model loyalty. In case your prospects wouldn’t advocate your services or products to a good friend, it’s an indication you’ve extra work to do in constructing belief and delivering in your worth proposition.
3. Social Media Listening
It could sound creepy however on this occasion of social media listening, spying in your prospects is an effective 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 individuals mentioning you on-line. The extra you find out about your prospects, the higher you’ll have the ability to serve them.
4. Messaging Targets
Utilizing the metrics above may also make sure that your advertising technique corresponds to the right buyer section. Your prospects may have totally different ache factors and wishes and will probably be at totally different factors of their buyer journey. As such, your messaging shouldn’t be one measurement matches all. You’ll want to make sure your advertising efforts goal the appropriate prospects on the proper time for his or her particular state of affairs.
For instance, you could possibly group prospects by product pages they’ve visited previously and ship them a advertising e mail mentioning that particular product. In case your messaging shouldn’t be aligned with the appropriate buyer section, you danger offering a poor buyer expertise — which might derail your model extension efforts.
Keep in mind that buyer expertise and model well being are linked. You gained’t efficiently pull off a model extension with out guaranteeing each are in an excellent place.
What separates one of the best model extensions from the worst?
Traditionally, probably the most profitable model extensions are those that carefully tie to the corporate’s core model or flagship product, like Gerber’s child garments and Dole’s frozen fruit bars. By getting into tangential markets that may protect their model’s distinctive associations and perceived high quality, firms can launch new merchandise that customers intuitively perceive the advantages of, though they’ve by no means seen them on a shelf.
On the flip aspect, an organization also can exploit its model and, in flip, damage it.
Growing a brand new product in a market that isn’t carefully tied to your flagship product or core model, like what Zippo did with its girls’s fragrance, might trigger some issues.
It might end in 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 enthusiastic about extending your product line, try our listing of probably the most and least profitable model extensions to assist encourage your personal.
Model Extension Examples
- Michelin
- Reese’s Puffs Cereal
- Meals Community’s Kitchen Gadgets
- Gillette’s Razors & Shaving Provides
- Colgate’s Toothbrush
- Star Wars Motion Figures
- Honda’s Garden Mowers
- Sunkist’s Vitamin C Tablets
- Cadbury’s Prompt Mashed Potatoes
- Levi’s Tailor-made Classics
- Pillsbury’s Frozen Microwave Popcorn
- Samsonite’s Outerwear
- Arm & Hammer’s Underarm Deodorant Spray
- Colgate’s Kitchen Entrees
Examples of Good Model Extensions
1. Michelin
Once you hear the identify Michelin, do you consider top-rated eating places or meals? Maybe each? Michelin constructed their empire manufacturing automotive tires. Within the late 1800s, the auto business was nonetheless in its infancy — on the time there have been fewer than 3,000 automobiles in France — the Michelin firm’s house base.
In an effort to assist drivers plan their journeys and increase automotive gross sales, Michelin rolled out a information that includes gasoline stations, maps, how you can change a tire, and different helpful info. Nevertheless, it wasn’t till the Nineteen Twenties that the Michelin Information took off. Because the information’s recognition grew, thriller diners had been despatched to numerous eating places to offer evaluations and a star ranking system was applied.
Now the Michelin Information is a must have reference for foodies and vacationers, masking eating places in roughly 41 nations.
What we like:
Michelin’s model extensions is among the riskier ones on this listing, however it’s fairly spectacular. They took two seemingly unrelated industries and made it work — changing into the gold customary of restaurant scores.
2. Reese’s Puffs Cereal
Reese’s Puffs was my favourite cereal rising up, so I could be somewhat 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.
As we speak, with some advert campaigns highlighting how youngsters can eat their favourite sweet for breakfast, over 6 million shoppers eat 1 to 4 servings of Reese’s Puffs per week based on Statista.
What we like:
Reese’s advertising efforts acquired dad and mom on board with permitting their youngsters to eat sweet for breakfast.
3. Meals Community’s Kitchen Gadgets
With an viewers of over 13 million individuals, Meals Community stays one of many world’s largest TV channels.
Contemplating that many individuals had been taken with 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
Gillette’s extension into making shaving merchandise alongside its security razor blades was a wise transfer. Why? It’s arduous to think about somebody shaving with out utilizing shaving cream, foam, or gel?
What we like:
It was nearly a necessity for Gillette to supply this complementary good for its flagship product.
5. Star Wars Motion Figures
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 turn into common as we speak? The Star Wars model prolonged into the toy market. With motion figures from characters within the motion pictures, Star Wars was capable of appeal to 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 appeal to new ones with the addition of merch.
6. Colgate’s Toothbrush
Identical 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’ll be able to’t brush your enamel.
What we like:
For my part, Colgate’s choice 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’s line of lawnmowers may not elicit probably the most pleasurable recollections of my childhood. Nonetheless, its entrance and success in a saturated market converse volumes for an organization primarily identified for promoting automobiles.
What we like:
By leveraging its experience in small motors to enter the garden mower market in 1978, it now boasts the seventh-largest slice of market share within the world garden mower business.
8. Sunkist’s Vitamin C Tablets
That includes orange juice as its flagship product, Sunkist’s model has associations with oranges, well being, and vitality. Sunkist produced vitamin C tablets that spawned a whole 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 a fantastic supply of vitamin C.
Examples of Unsuccessful Model Extensions
Not each model extension could be a hit. Listed below are a couple of examples of manufacturers which have made model extension errors — and the teachings you’ll be able to be taught from them.
9. Cadbury’s Prompt Mashed Potatoes
Cadbury is understood for making high-end chocolate and sweet. When it began producing low-end meals merchandise, like on the spot mashed potatoes, it’s not stunning to be taught that its affiliation with the best candies weakened.
Smash, its on the spot mashed potato model, really reached mainstream success, however it was on the expense of decreasing its flagship product’s perceived high quality. Cadbury finally offered Smash in 1986, over 20 years after introducing its on the spot mashed potatoes to the world.
What went fallacious:
Cadbury’s meals merchandise had been lower than the identical high-quality requirements as its sweet and misplaced buyer belief within the model.
10. Levi’s Tailor-made Classics
When Levi’s launched Tailor-made Classics within the early 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.
One in all these markets was males’s fits, however since its model was closely related to an informal, rugged, and outdoorsy way of life, Levi’s new product line conflicted with its core id and did not catch on.
What went fallacious:
Shoppers trusted Levis to supply sturdy clothes that would endure the wrath of mom nature, however, for that very cause, they did not belief them to ship high-end tailor-made fits.
11. Pillsbury’s Frozen Microwave Popcorn
Although Pillsbury is understood for producing foodstuffs, its frozen microwave popcorn couldn’t compete with Orville Redenbacher or Basic Mills’ Pop Secret as a result of its product positioning of being “frozen for freshness” didn’t supply sufficient worth. Certain, 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 fallacious:
Frozen popcorn was a tough promote — particularly when shoppers had better-tasting popcorn choices from rivals.
12. Samsonite’s Outerwear
Whereas Samsonite’s outwear is extra trendy 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 baggage. So except it thinks its flagship product’s elegant traits can switch to a very unrelated product line, its enterprise into the clothes business might diminish its model fairness. That is most probably the explanation Samsonite doesn’t listing outerwear on its web site anymore.
What went fallacious:
Samsonite was unable to switch its fame for creating modern baggage to clothes.
13. Arm & Hammer’s Underarm Deodorant Spray
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 one of the 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 shoppers.
What went fallacious:
Whereas Arm & Hammer is understood for making wonderful cleansing merchandise, prospects simply could not image themselves utilizing its merchandise on their our bodies.
14. Colgate Kitchen Entrees
Though Colgate did effectively by extending its model and creating totally different oral care merchandise, it did not enter the meals area.
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 in a different way.
What went fallacious:
Pivoting from oral care to meals was not a swap that acquired 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 online business, guarantee it is in keeping with what your excellent client needs.
Does it make any logical sense to begin advertising a brand new product to my prospects? What profit would a client derive from this new model or product? Have I carried out sufficient analysis to know the way a model extension would have an effect on my authentic model?
When you reply these questions, then you can begin enthusiastic about efficient methods to develop your model.
Editor’s word: This text was initially printed in June 2021 and has been up to date for comprehensiveness.Â
