Posted on : 2022-10-09 21:06:34
Article : Good morning, Monday management solution for the TASK 211- Not every brand extension can be a hit, there are advantages as well as disadvantages which the brand marketers should care for.
Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brand’s relevance and appeal. Brand extension may be successful or unsuccessful. Here in we discuss certain hits and failure of brands.
Dove, which began as a brand solely known for its bars of soap, grew to become a superpower in the shampoo, deodorant and body wash markets. In the process of becoming a superpower, it went from a 200-million-dollar company to a multi-billion-dollar company with its aggressive expansion strategy. Paramount to Dove’s success was ensuring that each new product had its own expectations, so that one product’s performance did not impact the others. By following this strategy, Dove’s brand extension of new products has actually increased sales of Dove’s original soap bars.
Dove has many successful extensions that could be highlighted. Perhaps its most impressive feat to date, Dove was able to carve out a niche for men (despite having built a brand targeting women). From its soft color palette to its logo, Dove was created with women in mind. However, in 2010, Dove launched a line of products targeting men, and was successful in building out the extension. Dove Men + Care capitalized on a need in the market – at the time, very few products specifically for men were available. By leveraging research at the time which showed that men did not identify with the versions of the “real man” portrayed on television, Dove advertised its new product as one that could help men become more comfortable in their own skin. In combination with Dove’s existing brand perception as being for real women, this extension was a logical one that offered a distinct value to its target audience.
Clorox Toilet Bowl Cleaner-The Clorox brand is associated with cleanliness, and is known for its bleach product. Years ago, the company was failing at the task of extending its brand beyond bleach. The company found that since “Clorox” was synonymous with chemical bleach, the public wasn’t interested in Clorox dishwasher detergent, or Clorox laundry detergent. It became clear that the company would have trouble marketing new products in areas where the strength and success of its bleach could actually present a problem. Consumers did not want to accidentally remove all the color from their clothes, for instance. Regardless of the actual composition or gentleness of the new products the company was creating, the Clorox brand connoted strong chemical cleanliness to consumers.
So, when the company introduced toilet bowl cleaner, Clorox was able to create a product that perfectly lined up with public expectations and met a new need. After all, if consumers thought that the product was too strong for laundry and dishes, they would certainly believe it was strong enough for the areas in the home that are typically viewed as dirtiest. Thus, a toilet bowl is a place where consumers would want the brand’s trademark chemical cleanliness. The brand hit a home run with this brand extension, and the revelations that came from it – that extensions could work if they were confined to the strong cleaning product category – informed a number of successful sanitizing products to follow. In this success story, adjusting their brand extensions to fit the perceptions of their brand, logic and leverage converged.
Not every brand extension can be a hit. Here are a few examples of brands that have made brand extension mistakes — and the lessons you can learn from them.
Cadbury's Instant Mashed Potatoes- Cadbury is known for making high-end chocolate and candy. When it started producing low-end food products, like instant mashed potatoes, it’s not surprising to learn that its association with the finest chocolates weakened. Smash, its instant mashed potato brand, actually reached mainstream success, but it was at the expense of lowering its flagship product’s perceived quality. Cadbury eventually sold Smash in 1986, over 20 years after introducing its instant mashed potatoes to the world.
Samsonite's Outerwear- While Samsonite’s outwear is more fashionable than Levi’s Tailored Classics, it still suffers from the same problem as Levi’s failed product line — the brand extension doesn’t align with Samsonite’s core identity. Samsonite is known for making high-end luggage, suitcases, and business bags. So unless it thinks its flagship product’s elegant traits can transfer to a completely unrelated product line, its venture into the clothing industry could diminish its brand equity. This is most likely the reason Samsonite doesn’t list outerwear on its website anymore.
End point- In brand extension there are advantages and disadvantages which the brand marketers need research better. In the era of communication revolution, consumers are well aware of various brands available in the market. Brand extension involves introducing product variations of the existing brands offered in the market. So, there is no need to build public awareness afresh. Economies in promotion and advertising, therefore accrue to organizations adopting brand extension strategies. Brand extension may discourage innovation. It may lead to companies producing too many “lookalike” products. The company may be tempted to rely on the power of the core brand name, as a result, it may not give sufficient financial support to the extension.
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