Extending Your Brand into New Markets
June 2010
“If you don’t know where you want to go, any road will get you there” Lewis Carroll
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How do I extend my brand into new markets?
Five Best…
Five Worst…
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Where brand meets innovation
Brand Extendibility
Brand Innovation
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Vendors
Customers
Partners
Developers
Suppliers Employees
Retailers
Strategic Positioning Statement of strategic intent, encompassing the
best Framed Need and Benefit the brand seeks to get the market to believe and participate in
Includes Brand Attributes (which can be a
combination of experience and persona elements)
Micro-Positions Tailored and relevant articulation of the framed
need to a particular stakeholder
Includes Critical Enables, elements of positioning required to deliver relevancy
to stakeholders
Stakeholders
Strategic Positioning
Relevant constituents who either impact and/or are impacted by the brand
Micro-Position
Micro-Position
Micro-Position
Micro-Position
Micro-Position
Micro-Position
What is brand?
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Strategy & Leadership
Creating and executing innovative growth strategies and engaging leaders and the overall organization to understand, believe and live them
Products & Services
Identifying market and consumer insights and translating them into innovative new products, services, business models, experiences and reenergized brands
Organizational Capabilities & Culture
Building an innovation capability by developing the required skills, culture, leadership, metrics, processes and tools to sustain innovation over time
Strategy & Leadership
Products & Services Organizational Capabilities & Culture
Business Growth
What is innovation?
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Which of these ranks as the worst brand extension in recent memory? a) Cheetos Lip Balm
b) Burger King Boxer Shorts c) Hooter's Airline d) Harley Davidson Cologne
Audience Polling #1
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Remember these?
Burger King Boxers
Pepsi Blue
Harley Davidson Cologne
Hooters Air
ESPN Restaurants
Kraft Probiotic Cheese
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Why do so many brand extensions fail?
• No need for product or service
Market
• Botched execution or launch
Execution
• Off-brand and/or uninspiring
Brand Relevance
1 2 3
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Market Opportunity
Just what we need… another pizza chain
Execution
Right idea, wrong execution
Why brand extensions fail: examples
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Brand Relevance
Another day, another flavor
Brand Relevance
Swinging bachelors don’t dye their own hair
Why brand extensions fail: examples
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The sweet spot
Market Opportunities
Organizational Opportunities
Brand Relevance & Inspiration Building, buying,
and outsourcing new capabilities
Creating new brand relevance
Creating new markets
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Why brand relevance and inspiration?
›❯ Equity
›❯ Heritage
›❯ Reputation
›❯ Feedback
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What is the most challenging aspect of extending brands for your company? a) inability to identify customer unmet needs/white space
b) lack of inspiration/creativity c) inability to evaluate potential opportunities/select “winners” d) poor execution/implementation
Audience Polling #2
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How do I stay relevant and become more innovative with my brand?
1 Determine Equities & Bounds of Extendibility
2 Inspire & Ideate
3 Develop Concepts
4 Validate Opportunity
How do I stay relevant and become more innovative with my brand?
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Product Attributes
Emotional Benefits
Functional Benefits
• Sets ambiance • Eliminates odor • Releases scent • Illuminates • Cleans
• Trustworthy • Welcoming • Homey • Family-oriented • Soothing
• Diffuser • Candles • Plug-ins • Sprays
Step 1: Brand attributes & equities
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Continuums
Package
Scent
Location
Price
Functional
Proxies
Strong Fit Moderate Fit
Spray Gel Candle Oil Potpourri
Natural (Grass) Floral (Rose) Fruit (Cherry) Spice (Cinnamon) Seasonal (Spring)
Bathroom Kitchen Living Space Garage Car Office Body
Budget Parity Premium
Eliminates Odor Complements Home Decor Releases pleasant smells Kills Germs
Emotional
Calming/Relaxing Welcoming Trustworthy Believable
Weak Fit Weak Fit
Weak fit
Bounds of extendibility
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• Focus Groups
• Ethnographies
• Interviews
• Consumer trends
Qualitative
• Brand Equity
• Pathways Modeling
• Quick-hit surveys
Quantitative
Exploring research techniques
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Customer Insights
Experiential Analogs
Brand DNA Company Capabilities
Hidden Assumptions
What unique assets, skills, technologies can we repurpose or harness?
Trend Analysis
Consumer Insight 1 2 3
4 6 5
What associations of our internal brand can we leverage?
What are the unmet or unarticulated needs and wants we can serve?
What trends inside and outside of our industry should we pay more attention to?
What “look at more stuff” stories are out in the world that can inform our work?
Can we challenge the way the industry and our company typically does business?
Step 2: Sources of inspiration…
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• Attractive • Simple • Balanced • Accurate
• Clear • Concise • Engaging • Compelling • Relatable • Facts (price,
location, size)
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Visual Content
Written Content
Step 3: Concept guidelines
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Example concept
Feeling frazzled after a long day? About to storm through the door without taking time to unwind? Let Glade’s New Scent Release Welcome Mat help you leave everything behind.
Upon contact, the mat releases 4 light puffs, filling your doorway with pleasant aroma of your favorite scents.
The New Scent Release Welcome Mat by Glade…Freshness at your Feet.
Available in Lavender, Cotton & Spa
Priced at $15.99
Introducing The New Scent Release Welcome Mat by Glade… Freshness at your Feet!
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• Focus Groups
• Interviews
Qualitative
• Choice Modeling
• Volumetric Modeling
• Surveys
Quantitative
Step 4: Concept testing
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