Jul 05

Brand Leverage

Posted by Packaging Sense in Advertising | Design | Logotypes | Uncategorized

Some brands are for ever linked to one and the same product and it is unthinkable to use it for another product, even in the same category. Other brands have the capacity to be stretched. One can also speak of brand extension, but I prefer the term “leverage”.

The brands which have the capacity to be used for a range of products are most often brands which

  • have a unique positioning;
  • have been properly managed during many years to become very strong in the consumers’ mind;
  • have a strong, i.e. unique personality (icon, colour scheme, style, etc.);

As brand leverage is a far cheaper way to introduce new products than developping a new brand it is quite natural to ‘leverage’ a brand as new products are invented thanks to new technology, new raw material or new distribution channels.

However, as we all know, in marketing it is difficult to be two things at the same time without watering down or weakening one or the other. Great care must therefore be taken to not use the same brand for a new product too far away from the brand’s positioning. It is difficult to sell orange juice if your brand is Chiquita and equally difficult to sell a cheese cake under the brand Campbell which stands for soups!

A good case of brand leverage is Nestlé’s Nesquik who’s positioning until recently was “irresistible fun”. The Quicky rabbit who is more powerful and interesting than the word Nesquik is being used for many chocolate products for children. As the illustrations show it is possible to use this brand identity for products as different as chocolate drinks (powder, semi-liquid or liquid), chocolate spread, chocolate bars, chocolate cereals, chocolate desserts, etc.

By leveraging the Nesquik identity which from the beginning was a product brand (chocolate powder to mix with milk) to a range brand (many different products) the brand has grown tremendously and is no doubt one of Nestlé’s most successful and profitable brands although all of the above products can easily be copied and have indeed!

We can here see the importance of strong brand identity as Quicky the rabbit is trademarked and well protected and thus impossible to be copied!
The lesson to be learned is the following: Never ever leverage (or if you so wish stretch) a brand outside its core positioning. You will, in the long run, weaken it as consumers only pay the right price (i.e. the one which makes you earn money) for a product which has either a very special taste or feature, or a strong,  iconic brand.

We can here see the importance of strong brand identity as Quicky the rabbit is trademarked and well protected and thus impossible to be copied!The lesson to be learned is the following: Never ever leverage (or if you so wish stretch) a brand outside its core positioning. You will, in the long run, weaken it as consumers only pay the right price (i.e. the one which makes you earn money) for a product which has either a very special taste or feature, or a strong,  iconic brand.

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses



Leave a Reply to Claude Stauffer

Packaging Sense by  wordpress themes