The Winning Strategy Behind Brand Extensions

Brand extensions are innovative brand strategies that offer exciting opportunities to launch new products or services by leveraging established brand equity. When done right, a brand extension can offer a new perspective with which your business can operate while diversifying product lines and reaching all new customers.

When Brand Extensions Rule

When a brand extension is successful enough, it can become the dominant face of the brand, leading to previously inaccessible avenues of growth. Take Michelin, for example. While primarily known as a tire manufacturer, Michelin may be better known for its dining guides and the prestigious Michelin Stars they award high-quality restaurants. Similarly, Dwayne “The Rock” Johnson, who started as a professional wrestler, is arguably more famous today as a Hollywood actor.

Synergy Brand Extensions: Meeting Customers Where They Are

Brand extensions based on brand synergies meet their current customers where they already are. Heinz’s foray into paint colors is a perfect example. Known for its iconic ketchup, Heinz introduced a paint color that matched the beloved condiment. This wasn’t a random choice—their market research showed that 39% of those buying condiments during peak BBQ season were also into DIY and home improvements. By tapping into existing customer interests, Heinz created a seamless extension of their brand.

Essence Brand Extensions: Leveraging Strengths

Some brand extensions work by extending the essence of their brand to new, but similar, products. Dyson, a brand synonymous with high-quality vacuum cleaners, ventured into the world of hair care with their premium hair dryers. These products are pricey but because both vacuums and hair dryers are machines that move air, customers assume an equally high level of precision, luxury, and quality. Similarly, Ferrari extended its brand to luxury watches, implying that the meticulous craftsmanship of their cars is mirrored in their timepieces.

Complementary Goods Brand Extensions: Vertical Integration

Extending a brand into complementary goods can be an easy way to diversify your product lines. Colgate, for instance, is a company that saw early success selling toothpaste, so it made perfect sense when they started selling toothbrushes as well. That said, brand extensions that stray too far from the core brand identity can backfire. In the 1960s, Colgate tested a line of frozen foods, which quickly failed—unsurprising, given the idea of eating Colgate-branded frozen crab  didn’t sit well with consumers accustomed to associating the brand with the flavor of toothpaste.

A New Frontier for your Brand

When executed thoughtfully, these innovative brand strategies can open profitable avenues for growth and innovation. By understanding the synergy with existing customer behaviors, maintaining the essence of your brand, or exploring complementary products, you might just discover the next big thing for your business.

If you want to unleash the full potential of your brand, reach out to Relish Marketing. We’re here to ensure your brand continues to resonate and grow.