Jun 27

Brand stretching

Posted by Wallentin in Uncategorized

Brand stretching, also called brand extension, is often an efficient and economical way of launching new products.

The potential for brand stretching depends on the positioning, i.e. how it is seen by the consumer. The new products (or services) have to fit the positioning and, hopefully, be more profitable.

It is possible for brand stretching to be the fundamental idea of a company. Virgin is a good example for their strategy, leveraging their irreverent, challenger brand across music, airlines, trains, telecoms and even banking.

Among FMCG brands, the first one that comes to my mind is KitKat which has successfully introduced, in Japan, all sorts of sizes, flavours or services.

In Europe, I doubt KitKat has done a good job, as the core idea of “the break” is totally lost in a product such as KitKat balls!

A brand which successfully stretches into other categories is no doubt Guinness. As it is rather difficult to have a younger generation drink a stout as rich as Guinness (they prefer lager), the latter now sells all sorts of products in their home market and I must admit that they fit very well in the Guinness imagery.

Don’t I do my fitness in a black Guinness T-shirt? If Red Bull today make most likely more money through media (and not the drink), I can imagine Guinness making a lot of money thanks to all their brand extensions. The latest I found were Guinness chips (from Burts), a Guinness steak sauce and Guinness Luxury Chocolate!

This being said, if you do brand stretching wrong, you are in for great troubles! I once saw Chiquita Orange juice… you cannot be two different things in marketing and that’s why brand stretching is so fascinating, i.e. to find a new product (or service) that fits the positioning, well even strengthens it!

 

LW/June 2017

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