Brand Extension Boot Camp: Do You Know the Basics?

Even in the marketing world, many people don’t have their facts straight when it comes to brand extensions. First, let me offer a simple definition: A brand extension leverages a well known brand name in one category to launch a new product in a different category.

As a quick example, you might associate the Sun-Maid name with raisins, but the brand extended into a whole new category with the introduction of Sun-Maid Raisin Bread.

Let’s take a closer look at the three components that make up my definition of brand extension:

1. It’s a new product. This is the most obvious one, but it bears repeating that you can’t just change the product name and/or packaging and call it a brand extension.

2. It uses the name of a well known brand. You can’t launch a successful brand extension unless people already know your brand’s name. One client tapped us to help extend a sauce brand named Crosse and Blackwell, but our research showed people either didn’t recognize the name or confused it with Black & Decker power tools.

3. The brand should have leverage with consumers in the new category. We discovered that the people who buy Snickers candy bars, for instance, aren’t necessarily the same people who buy ice cream bars. So how would Snickers Ice Cream Bars go over? It depends on what ice cream bar lovers know and think about Snickers. Take the time to research what if any leverage your brand name brings to a new category.

Ultimately, making the leap into new category is always a risk. Why should anyone switch to a new and untested product? That’s why a brand extension (like any other new product) must provide a strong reason why the consumer should prefer your product to what they buy now.