Working with Dr. Edward M. Tauber, the pioneer of brand extension research, we systematically studied examples ranging from Apple TV to Martha Stewart Pets to Parham Santana’s own Food Network line of cookware. Some were manufacturer developed, some licensed. All were market successes. We examined each and asked:
Quite surprisingly, we found that these 500 successful brand extensions can be categorized into only 10 sure ways that a brand can extend.
- Shift the form
Change the form of an existing product by changing its method of delivery, preservation, store placement, ingredient profile etc., to create a brand extension.
- Transfer a component
Take a component, flavor, ingredient, scent, color etc. closely associated with the brand and create a different product where this component is desired.
- Transfer a benefit
Take a benefit closely associated with the brand and create a new product in a different category where that benefit is desired.
- Leverage a special expertise
Take special expertise that the brand is perceived to have and launch products in a different category where this expertise would give the new product a competitive advantage.
- Sell companion products
Under your brand name, offer products that are frequently used along with the parent brand. Such “natural companions” are a great opportunity to extend.
- Leverage customer base
Sell something else to the customer base when the only leverage is brand recognition and reputation. Offer products where the fan base has a strong attachment or association with the brand.
- Leverage lifestyle
Some brands reflect a lifestyle to their customers. Offer products that are lifestyle brand extensions, reinforcing a particular way of living, set of values or interests.
- Leverage celebrity expertise
Products with celebrity names may be perceived as having a special expertise. To leverage celebrity expertise, associate the brand name with a recognized celebrity, or--
- Leverage celebrity lifestyle
Associate a celebrity who has no special expertise, but is perceived as having a desirable lifestyle.
- Change the game
To reverse the fortunes of a brand that has accumulated negative perceptions, incorporate modifier words that re-purpose negatives or enhance the applicability of the product to a new category.