Hailee Steinfeld is principally recognized for her performing chops, however her singing skills bolster her esteem as a performer and stretch her model to extra audiences and followers. And similar to her enterprise into music, corporations typically prolong their model to develop new merchandise in industries the place they don’t have any market share.
These initiatives are known as model extensions, they usually permit corporations to leverage their model consciousness and fairness to create extra income streams.
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 advertising technique that entails an organization utilizing its well-established model title 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 father or mother class and is one thing shoppers and prospects need.
Many corporations use model extensions as a result of it permits them to leverage their father or mother model’s model consciousness and authority to succeed in new demographics and open up new gross sales channels.
One firm that does model extensions properly 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 gadgets (iPhones), and tech equipment (Apple Watch and Earpods). Despite the fact that all these new merchandise are totally different, the extension works as a result of Apple did not drift too removed from its father or mother product class. As an alternative, it leveraged its model title to make penetrating the market a hit.
What are the forms of model extensions?
Relying on the kind of prospects you could have and what you need to obtain as a model, it’s essential resolve which model extension technique is correct in your firm.
Listed below are 5 totally different extension methods that might give you the results you want.
1. Line Extension
A line extension is when a father or mother model launches a brand new product line in a class already conversant in its prospects. With a line extension, manufacturers do not need to create new classes.
A wonderful instance of a line extension is when delicate drink corporations 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 method a longtime model can prolong 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 corporations use such a 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 properly 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
Corporations with excessive ranges of authority of their sector can leverage this authority to create new merchandise.
For example, Samsung has an enormous model title within the know-how house that enables 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 Life-style Extension
Who would have thought a tequila line from an vitality firm would promote out inside a couple of hours? Properly, Tesla did it. And it was primarily as a result of persona and life-style of its CEO, Elon Musk.
Nevertheless, Elon and Tesla are usually not the one ones to make use of a celeb’s life-style to increase an present model. Different cases 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 be sure that your model’s present iteration is in good well being. What does that imply? Model well being refers to a model’s potential to ship on its worth proposition and promise. Earlier than you begin launching a brand new services or products, be sure that prospects are delighted along with your present choices.
Subsequent, we’ll dig into what precisely you’ll have to assess model well being.
Model Well being Monitoring
There isn’t only one metric accessible to diagnose model well being. As an alternative, you’ll have to 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 may enable you to assess model well being.
- Internet Promoter Rating (NPS): Discover your NPS by sending a survey asking prospects in the event that they’d suggest your service or product to a good friend utilizing a scale of 0 (doubtless) to 10 (unlikely). Prospects who rated you at a 9 or 10 are thought-about “promoters.” Those that rated 0 to six are “detractors,” with these rated 7 to eight thought-about “passive.”
- Buyer Satisfaction Rating: Much like NPS, your buyer satisfaction rating can also 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 glad).
- Model Recall: Model recall is used to measure model consciousness. Your survey query would ask one thing just like “What firm/model involves thoughts if you consider [product]?”
- Share of Voice: Share of voice allows you to examine model consciousness throughout a number of advertising channels towards your rivals.
- 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, complete the variety of prospects that answered “very doubtless” and divide that quantity by the whole 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 enable you to monitor each model consciousness and model notion. Instruments like SurveyMonkey could make working surveys a cinch, and permit your staff to tug much-needed buyer insights.
2. Model Loyalty
Utilizing each your NPS and buyer satisfaction rating may also help you gauge model loyalty. In case your prospects wouldn’t suggest your services or products to a good friend, it’s an indication you could have 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 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 study your prospects, the higher you’ll have the ability to serve them.
4. Messaging Targets
Utilizing the metrics above may also be certain that your advertising technique corresponds to the proper buyer phase. Your prospects can have totally different ache factors and wishes and will likely be at totally different factors of their buyer journey. As such, your messaging shouldn’t be one measurement suits all. You’ll want to make sure your advertising efforts goal the correct prospects on the proper time for his or her particular scenario.
For instance, you can group prospects by product pages they’ve visited up to now and ship them a advertising electronic mail mentioning that particular product. In case your messaging isn’t aligned with the correct buyer phase, you threat offering a poor buyer expertise — which might 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 guaranteeing each are in a great place.
What separates the perfect model extensions from the worst?
Traditionally, essentially 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, corporations can launch new merchandise that customers intuitively perceive the advantages of, regardless that they’ve by no means seen them on a shelf.
On the flip aspect, an organization may 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 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 shopper model interested by extending your product line, try our listing of essentially the most and least profitable model extensions to assist encourage your individual.
Model Extension Examples
- Michelin
- Reese’s Puffs Cereal
- Meals Community’s Kitchen Objects
- 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 title 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 vehicles in France — the Michelin firm’s dwelling 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, find out how to change a tire, and different helpful data. Nevertheless, it wasn’t till the Twenties that the Michelin Information took off. Because the information’s recognition grew, thriller diners have been despatched to numerous eating places to offer evaluations and a star ranking system was carried out.
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, but it surely’s fairly spectacular. They took two seemingly unrelated industries and made it work — changing into the gold customary of restaurant rankings.
2. Reese’s Puffs Cereal
Reese’s Puffs was my favourite cereal rising up, so I is perhaps a bit of 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.
At present, 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 in accordance with Statista.
What we like:
Reese’s advertising efforts acquired dad and mom on board with permitting their kids to eat sweet for breakfast.
3. Meals Community’s Kitchen Objects
With an viewers of over 13 million folks, Meals Community stays one of many world’s largest TV channels.
Contemplating that many individuals have been serious about 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 a hit 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 sensible transfer. Why? It’s onerous to think about somebody shaving with out utilizing shaving cream, foam, or gel?
What we like:
It was nearly a necessity for Gillette to provide this complementary good for its flagship product.
5. Star Wars Motion Figures
Though Star Wars was well-liked amongst adults when the film was first launched in 1977, many kids did not prefer it as a lot.
So how did the franchise turn out to be well-liked at present? The Star Wars model prolonged into the toy market. With motion figures from characters within the motion pictures, Star Wars was in a position to 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 in a position to faucet into its devoted fan base and market toys to not simply die onerous 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 not like 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 certainly one of 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 won’t elicit essentially the most pleasing recollections of my childhood. Nonetheless, its entrance and success in a saturated market converse volumes for a corporation primarily recognized for promoting vehicles.
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 complete arm of enterprise devoted to nutritional vitamins and dietary supplements to each bolster and leverage this affiliation concurrently.
What we like:
Sunkist was in a position to 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 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 Prompt Mashed Potatoes
Cadbury is understood for making high-end chocolate and sweet. When it began producing low-end meals merchandise, like immediate mashed potatoes, it’s not shocking to study that its affiliation with the best candies weakened.
Smash, its immediate mashed potato model, truly reached mainstream success, but it surely was on the expense of decreasing its flagship product’s perceived high quality. Cadbury finally bought Smash in 1986, over 20 years after introducing its immediate mashed potatoes to the world.
What went mistaken:
Cadbury’s meals merchandise have 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 Nineteen Eighties, it already owned a big share of its goal market, so it wished to enter some new markets to maintain its excessive development charge.
One in every of these markets was males’s fits, however since its model was closely related to an off-the-cuff, rugged, and outdoorsy life-style, Levi’s new product line conflicted with its core identification and did not catch on.
What went mistaken:
Customers trusted Levis to provide sturdy clothes that might endure the wrath of mom nature, however, for that very motive, they did not belief them to ship high-end tailor-made fits.
11. Pillsbury’s Frozen Microwave Popcorn
Despite the fact that 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 provide 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 mistaken:
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 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 identification.
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 certainly the rationale Samsonite doesn’t listing outerwear on its web site anymore.
What went mistaken:
Samsonite was unable to switch its status for creating glossy 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 the perfect 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 properly with shoppers.
What went mistaken:
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 properly 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 identification. Since its viewers already related the model title with dental care, it was onerous for them to see the corporate in a different way.
What went mistaken:
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 have to know that extending your model into unchartered waters would additionally include challenges.
So earlier than you implement any extension technique for your corporation, guarantee it is in keeping with what your excellent shopper desires.
Does it make any logical sense to begin advertising a brand new product to my prospects? What profit would a shopper derive from this new model or product? Have I finished 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 interested by efficient methods to develop your model.
Editor’s word: This text was initially revealed in June 2021 and has been up to date for comprehensiveness.Â
