Hailee Steinfeld is especially recognized for her appearing 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 would encourage you.

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What’s a model extension?

Model extension is a advertising and marketing 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 greatest when the brand new product class is said to its dad or mum class and is one thing shoppers and clients need.

Many corporations use model extensions as a result of it permits them to leverage their dad or mum 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 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 identify to make penetrating the market successful.

What are the varieties of model extensions?

Relying on the kind of clients you’ve gotten and what you need to obtain as a model, it is advisable to resolve which model extension technique is true on your firm.

Listed below are 5 completely different extension methods that would give you the results you want.

1. Line Extension

A line extension is when a dad or mum model launches a brand new product line in a class already aware of its clients. With a line extension, manufacturers do not should create new classes.

A superb instance of a line extension is when smooth drink corporations introduce new flavors to their present drink lineup. Different examples might embrace introducing new scents, sizes, and colours to a product line.

2. Complementary Product Extension

One other means a longtime model can prolong itself is by creating complementary merchandise for its predominant merchandise.

For instance, Nike, a sports activities model, creates numerous tools, wears, and different sport-related merchandise that complement one another. We have additionally seen toothpaste corporations 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 completely 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.

For example, Samsung has an enormous model identify within the know-how area 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.

5. Model Way of life Extension

Who would have thought a tequila line from an vitality firm would promote out inside just a few hours? Nicely, Tesla did it. And it was primarily as a result of persona and way of life of its CEO, Elon Musk.

Nonetheless, Elon and Tesla are usually not the one ones to make use of a celeb’s way of life to increase an present model. Different cases embrace 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 necessary to make it possible for your model’s present iteration is in good well being. What does that imply? Model well being refers to a model’s skill to ship on its worth proposition and promise. Earlier than you begin launching a brand new services or products, make it possible for clients 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 obtainable to diagnose model well being. As a substitute, you’ll must view quite a lot of metrics to get a superb image of the place your model stands. Listed below are just a few metrics you must already be monitoring that can provide help to assess model well being.

• Web Promoter Rating (NPS): Discover your NPS by sending a survey asking clients 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 of “promoters.” Those that rated 0 to six are “detractors,” with these rated 7 to eight thought of “passive.”
  
• Buyer Satisfaction Rating: Just like NPS, your buyer satisfaction rating can also be a survey query. This one asks clients to price 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 enables you to evaluate model consciousness throughout a number of advertising and marketing channels in opposition to your rivals.
• Buy Intent: This survey query asks clients how doubtless they’re to purchase your model on a scale from not more likely to very doubtless. To search out the rating, complete the variety of clients that answered “very doubtless” 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 monitor your:

1. Model Consciousness

Surveys and focus teams will provide help to monitor each model consciousness and model notion. Instruments like SurveyMonkey could make operating surveys a cinch, and permit your workforce to drag much-needed buyer insights.

2. Model Loyalty

Utilizing each your NPS and buyer satisfaction rating might help you gauge model loyalty. In case your clients wouldn’t suggest your services or products to a good friend, it’s an indication you’ve gotten extra work to do in constructing belief and delivering in your worth proposition.

3. Social Media Listening

It might sound creepy however on this occasion of social media listening, spying in your clients 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 clients 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 find out about your clients, the higher you’ll be capable of serve them.

4. Messaging Targets

Utilizing the metrics above will even make sure that your advertising and marketing technique corresponds to the proper buyer section. Your clients could have completely different ache factors and wishes and might be at completely 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 and marketing efforts goal the suitable clients on the proper time for his or her particular scenario.

For instance, you possibly can group clients by product pages they’ve visited previously and ship them a advertising and marketing e-mail mentioning that particular product. In case your messaging is just not aligned with the suitable 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 making certain each are in a superb place.

What separates one of the best 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 coming 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, although they’ve by no means seen them on a shelf.

On the flip facet, an organization also can exploit its model and, in flip, break 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 ladies’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 enthusiastic about extending your product line, take a look at our listing of essentially the most and least profitable model extensions to assist encourage your individual.

Examples of Good Model Extensions

1. Michelin

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If 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 car business was nonetheless in its infancy — on the time there have been fewer than 3,000 vehicles in France — the Michelin firm’s residence 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, easy methods to change a tire, and different helpful info. Nonetheless, it wasn’t till the Twenties that the Michelin Information took off. Because the information’s reputation grew, thriller diners have been despatched to varied eating places to offer critiques and a star ranking system was applied.

Now the Michelin Information is a must have reference for foodies and vacationers, protecting eating places in roughly 41 nations.

What we like:

Michelin’s model extensions is without doubt one of the riskier ones on this listing, nevertheless it’s fairly spectacular. They took two seemingly unrelated industries and made it work — turning into the gold commonplace of restaurant rankings.

2. Reese’s Puffs Cereal

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Reese’s Puffs was my favourite cereal rising up, so I could be a 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 good and pure.

At this time, 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 line with Statista.

What we like:

Reese’s advertising and marketing efforts bought mother and father on board with permitting their kids to eat sweet for breakfast.

3. Meals Community’s Kitchen Objects

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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 occupied 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 selected viewers with what they wanted.

4. Gillette’s Razors & Shaving Provides

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

What we like:

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

5. Star Wars Motion Figures

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Though Star Wars was common amongst adults when the film was first launched in 1977, many kids did not prefer it as a lot.

So how did the franchise change into common right now? 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 exhausting followers, however appeal to new ones with the addition of merch.

6. Colgate’s Toothbrush

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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’ll be able to’t brush your enamel.

What we like:

For my part, Colgate’s determination to enter the toothbrush market was a necessity and one in every of its greatest strikes, serving to it safe the third-largest slice of the oral care market.

7. Honda’s Garden Mowers

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Honda’s line of lawnmowers may not elicit essentially the most pleasing recollections of my childhood. Nonetheless, its entrance and success in a saturated market converse volumes for an organization 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 international garden mower business.

8. 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 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 an awesome supply of vitamin C.

Examples of Unsuccessful Model Extensions

Not each model extension generally is a hit. Listed below are just a few examples of manufacturers which have made model extension errors — and the teachings you’ll be able to study from them.

9. Cadbury’s Instantaneous Mashed Potatoes

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Cadbury is understood 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 goodies weakened.

Smash, its instantaneous mashed potato model, really reached mainstream success, nevertheless it was on the expense of reducing its flagship product’s perceived high quality. Cadbury ultimately offered Smash in 1986, over 20 years after introducing its instantaneous mashed potatoes to the world.

What went unsuitable:

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

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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 price.

One among 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 id and did not catch on.

What went unsuitable:

Customers 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

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Although Pillsbury is understood 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 supply sufficient worth. Positive, 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 unsuitable:

Frozen popcorn was a tough promote — particularly when shoppers had better-tasting popcorn choices from rivals.

12. Samsonite’s Outerwear

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Whereas Samsonite’s outwear is extra trendy than Levi’s Tailor-made Classics, it nonetheless suffers from the identical drawback 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 until 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 almost certainly the rationale Samsonite doesn’t listing outerwear on its web site anymore.

What went unsuitable:

Samsonite was unable to switch its fame for creating smooth baggage to clothes.

13. 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 effectively with shoppers.

What went unsuitable:

Whereas Arm & Hammer is understood for making wonderful cleansing merchandise, clients simply could not image themselves utilizing its merchandise on their our bodies.

14. Colgate Kitchen Entrees

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

What went unsuitable:

Pivoting from oral care to meals was not a change that bought buy-in from clients.

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 what you are promoting, guarantee it is in keeping with what your ideally suited shopper needs.

Does it make any logical sense to begin advertising and marketing a brand new product to my clients? What profit would a shopper derive from this new model or product? Have I carried out sufficient analysis to understand how 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 notice: This text was initially revealed in June 2021 and has been up to date for comprehensiveness.