Brand stretching, brand extension: we’re talking about extending a brand, but what exactly are we talking about?
While the linguistic nuances reveal a very real difference between these two concepts, they refer to the same marketing phenomenon: the expansion of a brand beyond its initial offering. It is not uncommon to see these terms used indiscriminately, proof that confusion reigns…
But while these two approaches both enable a brand to transform itself in order to stay alive, the opportunities and risks associated with them are not the same!
Renewing to enrich the experience and perception of the brand
The most successful brands never stand still. Faced with an increasingly tough competitive environment, innovation appears to be the main way for a brand to embody its promise and positioning. The brand becomes stronger and creates lasting value.
Brand extension
With brand extension, the brand broadens its existing offering by introducing a new product or a new segment into an already familiar market.
Vico, for example, recently launched a range of crisps with a street food flavour (see our Vico case study), to reach a new target audience. Dove has capitalised on its brand image of gentle, skin-friendly products to diversify into other personal care segments, moving from soaps to shower gels, creams, shampoos and more. Initially known for its range of teas, Lipton has extended its offer to iced tea and infusions.
Brand stretching
With brand stretching, the brand opens up new horizons, going beyond its original category to conquer new markets.
Sometimes, the innovation involves the same product or a similar product but for a different use. This is the case, for example, with Knacki and its Knacki Ball innovation launched in 2001: the first snack box on the market, Knacki Ball was both a revolution in form and a revolution in use. It changed the way people enjoyed an aperitif, while at the same time providing the brand with creativity and insight.
Another example is Joker, which has entered the functional market by introducing a new daily ritual with its vitamin shots based on fruit juices, super ingredients and vitamins, echoing the growing demand for healthy products (see our Joker case study).
More broadly, this is also the case for all those confectionery brands that have launched ice-cream versions of their products, like Snickers, and breakfast cereal brands that have diversified into cereal bars to meet on-the-go demand.
At other times, the gap between the initial offering and the new category is greater. What link do you see between patisserie and home fragrances? Do you see any? Ladurée has developed a range of home fragrances and candles in line with its pastry universe, making the brand not just a pastry house but an embodiment of the French art of living.
Apple began with personal computers (Macs) and built on its image of intuitive, innovative design to transform the way people listened to music (iPods) and revolutionise the smartphone market (iPhones).
Photo credit : Wikimédia
Harley Davidson, the two-wheeled legend, is now offering fans of the brand the chance to extend the experience beyond riding with a range of clothing and accessories. It’s a perfectly thought-out extension of the brand’s clothing range, allowing aficionados to show their support for the rebellious spirit that is so much a part of the brand.
Dyson first made a name for itself with its hoovers, then fans and air purifiers completed the brand’s offering. So far, nothing very surprising. But we weren’t at the end of our surprises… the brand having decided to launch into hairdryers and styling appliances! An excellent decision, given that the Dyson Airwrap is now one of the most popular appliances on the market. To convince us, the brand was able to capitalise on its capital of trust and its image of expertise and cutting-edge technology.
RedBull has taken its positioning around surpassing oneself and physical performance from energy drinks to the world of extreme sports (sponsorship, events, content, etc.).
Bonne Maman, the queen of jams, has transposed its positioning around authenticity, tradition and a return to childhood to cakes, spreads, yoghurts and more.
Palmolive, known for its washing-up liquids, has diversified into cleansing creams and shower gels, focusing on naturalness and gentleness for the hands.
But the prize for the greatest brand extension surely goes to Virgin, initially known in the music market (Virgin Records) and extended to air transport (Virgin Atlantic), telecommunications (Virgin Mobile) and space tourism (Virgin Galactic)! If the brand has been able to juggle so many different worlds, it’s largely because it has always remained true to its core values – boldness, eccentricity, innovation, quality of service… – which have given it enough credibility to venture down new paths.
Photo credit : Wikimédia
From a branding point of view, both brand extension and brand stretching make it possible to increase brand visibility and awareness, and to strengthen brand loyalty by encouraging repeated interaction with the brand. But the two approaches differ in the way they impact brand image: brand extension strengthens the brand by bringing the brand promise to life, while brand stretching evolves the brand by enriching the overall positioning. For example, when Joker launched its Shots, the brand broadened its positioning from fruit juice specialist to plant-based nutrition expert.
The keys to successful brand expansion
While some brands have succeeded in expanding beyond their initial offering, many have failed.
Examples include Colgate and its frozen ready meals, Cosmopolitan and its yoghurts, Cheetos and its lip balm, Bic and its perfumes or Levi’s and its line of Levi’s Tailored Classics suits…
These examples are not just commercial and financial failures. For brands too, the price is high. Dilution of brand identity, loss of credibility that can damage the brand’s overall reputation, and even rejection of the brand by consumers…
The desire to diversify is all well and good, but doing so with a well thought-out strategy is even better!
The combined analysis of the failures and successes mentioned above gives us some clear lessons for successful expansion:
1 – Brand strength: the brand must be established and recognised in its category. It must have a clear image, strong values and a good reputation so that it can diversify more easily. If your brand is too weak or its promise is unclear, it’s not the right time to launch!
2 – Consistency with the brand’s image: innovation must be perfectly consistent with the brand’s DNA and core values. It must reinforce and/or enrich the brand’s image, but above all it must not blur it. From toothpaste to food products, from fashion to yoghurts, or from pens, disposable razors and lighters to perfume: there was a (too big) step… not to be taken! Would you buy your dinner from your toothpaste brand?
3 – Confidence in the brand: a brand that has been able to create and win the confidence of its consumers in its original category will be more likely to expand successfully. When Apple launches a new product, all the brand’s aficionados are already convinced before they’ve even tried it! This is because they have complete confidence in the brand, in its understanding of the issues of the day and in the solutions it offers, and are ready to follow it with their eyes shut.
4 – Brand credibility: the brand must be perceived as credible and legitimate in its extension. This extension must reflect the brand’s expertise and know-how. It’s hardly surprising that consumers failed to trust BIC, renowned for its practical and affordable disposable products, when it launched into the perfume market, a world associated with luxury and quality. Similarly, Levi’s, rooted in denim culture and known for its informal, casual style, had little credibility in the formal suit market…
5 – Responding to a real need & differentiation: expansion must respond to a real need on the part of consumers and provide real added value to stand out from established players. Endless product variations for which there is no real demand run the risk, in the long run, of exhausting consumers and turning them away from the brand. Who would want to put on a lip balm that tastes like their favourite salty cheese snack?
6 – Emotional bond with the brand: the success of an innovation launch also depends on the strength of the emotional bond that consumers have with the brand. If consumers are very attached to a brand, they will be more inclined to try out its new offerings.
Conclusion
Expanding a brand can be a powerful strategy for growth, but it is not without risk. Remember: a rubber band gets stronger when you stretch it, but it can also break if you stretch it too far… So we can’t stress this enough: think consistency, credibility and added value!
However, some things cannot be explained. While Vuitton’s extension into the travel guide category seems perfectly consistent with the brand’s travel-focused DNA, what about Michelin, a player in mobility, and its extension into the world of gastronomy and hotels with its Michelin Guides? Is travelling to recommended restaurants and hotels a sufficiently immediate link to the brand?