From KFC to Apple To Colgate, every famous company take one step ahead and create something that helps them grow a new target market. This phenomenon is called Brand extension. In this article we will learn the top 5 most unique examples of brand extension.
Ever seen your favorite brand launch a new product? I was amazed when Reese’s went beyond peanut butter cups and started offering things like homemade dessert bars and peanut butter for toast. You can find similar brand extension examples everywhere, like in your local coffee shop or the famous laundry detergent you use.
Continue reading to discover how brand extensions work and what lessons they hold for growing your business.
Colgate’s Lasagnas and Dinner Options
Colgate has had mixed results with its brand expansions. Known for its toothpaste, the company tried to branch out in the 1980s by introducing frozen ready meals. Yes, you read that right – Colgate-branded lasagna in 1982. Predictably, this attempt failed as people weren’t interested in buying dinner from a toothpaste brand.
However, Colgate had a more successful brand extension later on. They ventured into electric toothbrushes, which turned out to be a smart move. This new product line complemented their existing offerings and leveraged their authority in the oral health industry to boost sales. It was a far better idea than trying to sell frozen dinners.
Dyson’s Famous Hair Care Products
Just five years ago, Dyson was mainly recognized for its vacuum cleaners. As a well-regarded industry leader, it’s not surprising that Dyson capitalized on its reputation to explore new product categories.
While fans and air purifiers were a logical progression, the expansion into hair dryers and stylers caught many off guard. The success of the Dyson Airwrap, now a highly sought-after hair tool, can be attributed to the trust people have in the brand.
Dyson’s existing renown for cutting-edge technology and expertise played a significant role in the unexpected but desirable brand extensions they introduced, demonstrating the authority they held in the market.
Cadbury’s Instant Mashed Potatoes
Cadbury, renowned for crafting premium chocolates and candies. Took a notable shift when it delved into producing more affordable food items, such as instant mashed potatoes. Understandably, this move led to a decrease in its association with top-tier chocolates.
Oddly enough, Smash, their brand of instant mashed potatoes, achieved widespread popularity. But this came at the cost of diminishing the perceived excellence of their flagship chocolate products. Eventually, in 1986, Cadbury divested from Smash, more than two decades after its introduction to the market.
The introduction of lower-quality food items by Cadbury contrasted sharply with the company’s commitment to producing high-quality confections, eroding the trust consumers had in the brand.
Michelin Star
When you think of Michelin, do you associate it with great restaurants or food? Maybe both? Even though Michelin started by making car tires, they also ventured into something unexpected. Back in the late 1800s, when there were only a few thousand cars in France (where Michelin was based), the company decided to help drivers by creating a guide with maps, gas stations, and tips on things like changing tires.
But it wasn’t until the 1920s that the Michelin Guide really took off. As more people liked the guide, they sent secret reviewers to different restaurants and introduced a star rating system.
Now, the Michelin Guide is a must-read for food lovers and travelers, covering restaurants in around 41 countries.
Michelin’s move into the restaurant industry might seem surprising, but it’s impressive. They succeeded in two unrelated areas – cars and food – and became the standard for rating restaurants.
Famous Guinness Book Of World Record Makes Beer
Before 1955, Guinness Breweries was a British company famous for its dark beer. Then, something unusual happened on a hunting trip in Ireland. Sir Hugh Beaver, the company’s director, noticed there was no reliable way to settle arguments about Europe’s fastest bird. So, he came up with an idea.
He created a book to record all sorts of fascinating and uncommon achievements. The first Guinness World Records book came out in 1955 and became a big hit. It sold well and is now available in over 100 countries and many languages. The book is known for its quirky and captivating records, covering various subjects like sports, entertainment, science, and the arts.
Today, Guinness World Records is a separate global brand, owned by Guinness World Records Limited, not the brewery. They still publish the popular records book and have expanded to include products like the Guinness World Records Gamer’s Edition and the Guinness World Records app.
Expanding your brand can be good, but it has its challenges too. Before you add new things to your brand, make sure it’s what your target customers actually want.
Ask yourself: Does it make sense to sell this new thing to my customers? What will they gain from it? Did I research enough to know how this change might affect my original brand? Once you’ve got answers, you can start planning how to grow your brand smartly.