I used to be in awe of Hailee Steinfeld’s efficiency after watching her in The Edge of Seventeen. Her efficiency was so good that it earned her a Golden Globe nomination for Finest Actress.

However what amazes me about Steinfeld isn’t her performing prowess. It’s that she’s additionally simply as completed as a singer. Steinfeld has collaborated with among the most well-known musicians like Zedd, Florida Georgia Line, and Alesso to supply three hit songs which have all reached the Billboard Hot 100 record chart.

Though Steinfeld is especially identified for her performing chops, 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, firms 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, and so they enable firms to leverage their brand awareness 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.

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What’s a model extension?

Model extension is a marketing strategy 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 dad or mum class and is one thing shoppers and prospects need.

Many firms use model extensions as a result of it permits them to leverage their dad or mum model’s model consciousness and authority to achieve 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). Though all these new merchandise are completely different, the extension works as a result of Apple did not drift too removed from its dad or mum product class. As a substitute, it leveraged its model title to make penetrating the market successful.

What are the varieties of model extensions?

Relying on the kind of prospects you’ve gotten and what you wish to obtain as a model, you could resolve which model extension technique is true on your firm.

Listed here are 5 completely different extension methods that might give you the results you want.

Line Extension

A line extension is when a dad or mum 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 smooth drink firms introduce new flavors to their present drink lineup. Different examples may embody introducing new scents, sizes, and colours to a product line.

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 firms use any such extension for his or her unique model by including toothbrushes and different oral care merchandise as new classes.

Buyer Base Extension

An organization can create a branding extension for itself by launching completely 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.

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 title within the know-how house that enables them to launch completely 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.

Model Way of life Extension

Who would have thought a tequila line from an power firm would sell out within a few hours? Properly, Tesla did it. And it was primarily because of the character and way of life of its CEO, Elon Musk.

Nonetheless, Elon and Tesla aren’t the one ones to make use of a star’s way of life to increase an present model. Different situations embody Adidas/Kanye West’s Yeezy lineup and Fenty (a model beneath LVMH) with Rihanna.

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 buyers intuitively perceive the advantages of, although they’ve by no means seen them on a shelf.

On the flip aspect, an organization also can exploit its model and, in flip, destroy 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, may trigger some issues.

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

So whether or not you’re a SaaS firm or a shopper model fascinated by extending your product line, take a look at our listing of probably the most and least profitable model extensions to assist encourage your personal.

Examples of Good Model Extensions

1. Reese’s Puffs Cereal

Reese's Brand Extension -- Cereal

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Reese’s Puffs was my favourite cereal rising up, so I may be a little bit 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 sensible and pure.

In the present day, with some advert campaigns highlighting how children can eat their favourite sweet for breakfast, Reese’s Puffs has helped Common Mills, its conglomerate, capture the second-biggest slice of the cold cereal market share.

2. Meals Community’s Kitchen Objects

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

Contemplating that many individuals have been all in favour of 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.

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

3.Gillette’s Razors & Shaving Provides

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

It was nearly a necessity for Gillette to supply this complementary good for its flagship product.

4. Star Wars Motion Figures

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Though Star Wars was in style 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 in style as we speak? 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 entice a brand new viewers, construct model consciousness and make a ton of gross sales within the course of.

5. Colgate’s Toothbrush

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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 possibly can’t brush your tooth.

In my view, Colgate’s resolution 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.

6. Honda’s Garden Mowers

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Honda’s line of lawnmowers may not elicit probably the most fulfilling recollections of my childhood. Nonetheless, its entrance and success in a saturated market communicate volumes for a corporation primarily identified for promoting vehicles.

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.

7. Sunkist’s Vitamin C Tablets

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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.

Examples of Unsuccessful Model Extensions

Not each model extension generally is a hit. Listed here are a number of examples of manufacturers which have made model extension errors — and the teachings you possibly can study from them.

8. Cadbury’s On the spot Mashed Potatoes

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Cadbury is thought 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 candies weakened.

Smash, its instantaneous mashed potato model, truly reached mainstream success, however 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.

9. Levi’s Tailor-made Classics

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

One in all these markets was males’s fits, however since its model was closely related to an off-the-cuff, rugged, and outdoorsy way of life, Levi’s new product line conflicted with its core identification and did not catch on.

Customers trusted Levi’s to supply sturdy clothes that might endure the wrath of mom nature, however, for that very cause, they did not belief them to ship high-end tailor-made fits.

10. Pillsbury’s Frozen Microwave Popcorn

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Though Pillsbury is thought 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 suppose), however that profit pales compared to having fun with a better-tasting popcorn.

11. Samsonite’s Outerwear

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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 thought 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 trade may diminish its brand equity. That is most certainly the rationale Samsonite doesn’t listing outerwear on its web site anymore.

12. Arm & Hammer’s Underarm Deodorant Spray

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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 properly with shoppers.

13. Colgate Kitchen Entrees

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Though Colgate did properly by extending its model and creating completely 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 exhausting for them to see the corporate in another way.

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 according to what your best shopper needs.

Does it make any logical sense to start out advertising and marketing a brand new product to my prospects? What profit would a shopper derive from this new model or product? Have I executed 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 fascinated by efficient methods to develop your model.

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