paul friederiksen
The hard truth about brands is that if they're not growing, they're dying. Most marketers are familiar with the brand adoption lifecycle depicted by the classic bell curve. At the beginning of the curve is an innovative concept that becomes a brand. At the top of the curve, brands reach maturity and begin their inevitable decline. Marketers do everything they can to avoid a decline before competitors overtake them or the market reaches saturation. Expanding the brand's reach into other areas is one of his ways of breathing new life into the brand. However, this move is not without risks.
failed case study
Years ago, The Home Depot (THD) introduced a truly innovative type of flooring with a catchy proprietary brand name: TrafficMaster. It was an immediate success. In fact, even as my client was setting up the first aisle display during a store test, customers were elbowing their way past the merchandising team, loading carts with new products. Immediately he THD reported that the TrafficMaster was one of the best new products in the history of the retail chain. It survived limited testing and was distributed across the United States in record time.
So what did THD do next? The company capitalized on the popularity of its recent launch by giving its range of regular flooring products the name of this new product. There was nothing special or innovative about the other products. They now had the same unique name. The retailer was eager to achieve new success, but was at risk of losing customers due to confusion and not meeting expectations.
In another case, this same retailer adopted its very popular “Hampton Bays” label for ceiling fans and light fixtures, along with patio furniture and other somewhat bizarre additions to its original product line. I applied it to dubious relevance. Product managers and category captains are always looking for ways to gain an edge over their competitors by leveraging their brand's popularity in other departments, with the expectation that customers will blindly follow them. The risk here was that the brand's credibility would extend beyond its core competencies.
Both stories are examples of brand extension strategies as part of a brand architecture. In this case, marketers rely on the original brand's recognition, positive associations, and quality perceptions to make brand extensions across new product ranges more credible to existing customers and more attractive to new customers. We aim to do so.
As always in marketing lore, there are many bad examples of well-intentioned brand managers making outrageous or even laughable brand extension decisions.
• Colgate Kitchen Entrees: Popular toothpaste Colgate entered the frozen food market in the 1980s with Colgate Kitchen Entrees. The brand expansion failed because consumers associated Colgate with things like toothpaste, oral hygiene, and cleanliness, and it was difficult to associate it with food.
• Cosmopolitan Yogurt: Known for its fashion, beauty and lifestyle-focused content, Cosmopolitan magazine partnered with Yoplait in 1999 to launch its yogurt range. Attempts to expand the brand into the food industry were not well received by consumers. I didn't associate Cosmopolitan with yogurt.
• Harley-Davidson Perfume: To expand the brand beyond motorcycles, Harley-Davidson launched a men's and women's perfume line in 1996. However, this perfume line failed to resonate with consumers because consumers did not associate motorcycle brands with fragrances or scents. personal care products.
• ZIPPO Fashion Line: Famous for its windproof lighters, ZIPPO attempted to enter the fashion industry by introducing a clothing line in the late 1990s. Despite the brand's strong association with durability and practicality, the fashion extensions did not align with the brand's core values.
• Bic Disposable Underwear: Bic, a well-known brand known for its disposable pens and razors, sought to expand its product line into disposable underwear in the 1970s. The brand extension was met with skepticism and consumer resistance, as Bic lacked the necessary credibility and expertise in the clothing industry.
• Kodak Digital Camera: Kodak is a leading brand in traditional film photography, but it has been slow to adapt to the digital revolution. When the brand finally entered the digital camera market, its products could not compete with established digital camera brands such as Canon and Nikon. Kodak's brand values have not seamlessly extended into the digital realm.
A common reason for most of these errors is a lack of brand integrity. It's not that Colgate Kitchen Entree had bad packaging or that I don't appreciate people who ride Harleys wearing nice perfume. Fundamentally, it's because marketers didn't understand their customers and why they were loyal to brands in the first place.
method for success
Fostering customer loyalty requires a deeper understanding of the relationship between your brand and your customers. This process strengthens and deepens the bond between your customers and your brand. On the other hand, a poorly extended brand risks weakening that bond and encouraging customers to look elsewhere and accept other options.
To align with your customers, say, “We have this really innovative flooring product, so let's call all the other flooring products the same and see if anyone notices.” or “We're ceiling fans. Ceiling fans can be installed on porches, so patio furniture is obviously an extension.”
To avoid brand decline and continue to grow your brand, look for ways to continue to meet customer needs and expectations through continuous innovation and marketing. If you think you need to extend your brand, consider your decision in light of the following eight strategies put together by Derrick Daye of The Blake Project:
1. Similar products in different formats: This is when a company changes the format of a product from its original parent product.
2. Unique Flavors/Ingredients/Ingredients: If a brand “owns” a flavor, ingredient, or ingredient, there may be other categories where consumers desire that characteristic.
3. Benefits/Attributes/Features: Many brands “own” benefits, attributes, or features that can be extended.
4. Expertise: Over time, certain brands may develop a reputation for having expertise in a particular area. This special expertise can be leveraged by extending it to areas where it is considered important.
5. Companion products: Some brand extensions are “natural” companions to products a company already makes.
6. Vertical expansion: Some brand extensions are vertical extensions of what you currently offer. Brands can leverage their “ingredient/component” heritage to launch products in a more complete (or sometimes less complete) form.
7. Same Customer Base: Many brand extensions represent marketers' efforts to sell something different to their customer base.
8. Designer Image/Status: Certain brands convey status and create an image for users.
apply to business
In recent years, many flooring manufacturers have expanded their brands to include LVT and rigid core products out of necessity. These marketers must find a common bond between the original brand and the extension. Once identified, you need to reposition your brand and create a message that speaks to your customers' interests.
While it's true that most of these manufacturers aren't concerned about consumer marketing, the end customer is still the consumer. Distributors, retailers, and OEM customers are equally important when it comes to brand marketing and well-executed brand extensions.
Copyright 2023 Floor Focus
Related topics:International Water Surface Event (TISE)
