{"id":3875,"date":"2016-03-15T12:12:04","date_gmt":"2016-03-15T16:12:04","guid":{"rendered":"http:\/\/www.prejeancreative.com\/pc_blog\/?p=3875"},"modified":"2016-03-16T15:18:31","modified_gmt":"2016-03-16T19:18:31","slug":"extending-a-brand-requires-diligent-strategic-planning","status":"publish","type":"post","link":"https:\/\/www.prejeancreative.com\/pc_blog\/2016\/03\/15\/extending-a-brand-requires-diligent-strategic-planning\/","title":{"rendered":"Extending a Brand Requires Diligent Strategic Planning"},"content":{"rendered":"<div class=\"facebook_like_button\" style=\"float: right; margin-left: 10px;\"><iframe src=\"http:\/\/www.facebook.com\/plugins\/like.php?href=https%3A%2F%2Fwww.prejeancreative.com%2Fpc_blog%2F2016%2F03%2F15%2Fextending-a-brand-requires-diligent-strategic-planning%2F&amp;layout=button_count&amp;show_faces=false&amp;action=like&amp;colorscheme=light&amp;width=200\" scrolling=\"no\" frameborder=\"0\" allowTransparency=\"true\" style=\"border:none; overflow:hidden; width:200px; height:20px\"><\/iframe><\/div>\n<p><a href=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/oreo_blog_gfx-05.png\" rel=\"attachment wp-att-3881\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3881\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/oreo_blog_gfx-05.png\" alt=\"oreo_blog_gfx-05\" width=\"1667\" height=\"417\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/oreo_blog_gfx-05.png 1667w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/oreo_blog_gfx-05-300x75.png 300w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/oreo_blog_gfx-05-768x192.png 768w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/oreo_blog_gfx-05-1024x256.png 1024w\" sizes=\"auto, (max-width: 1667px) 100vw, 1667px\" \/><\/a><\/p>\n<p>Brand extensions are risky business. Companies have to remember that consumers are fickle. Brand image\/associations in the minds of the public are difficult to alter. Some brands have done it very successfully, with complete adoption from consumers. But, others have failed.\u00a0There are two paths that can be taken\u00a0&#8211;\u00a0a line extension or brand extension.<\/p>\n<p><span style=\"font-size: 12px; color: #d92a25;\"><strong>Line Extensions<\/strong><\/span><br \/>\n<a href=\"https:\/\/www.extension.iastate.edu\/agdm\/wholefarm\/html\/c5-52.html\" target=\"_blank\">Half of all new products<\/a> introduced each year are line extensions.<\/p>\n<p>Line extensions seek to increase a brand\u2019s user base by leveraging the parent brand equity to target a different market segment in the same product category. They are often a different flavor, ingredient variety, form, size, shape or application of a brand. Ever eat a Peanut Butter <a href=\"http:\/\/www.nytimes.com\/2003\/10\/04\/business\/permutations-push-oreo-far-beyond-cookie-aisle.html\" target=\"_blank\">Oreo<\/a> or Baked <a href=\"http:\/\/www.talentzoo.com\/beneath-the-brand\/blog_news.php?articleID=14557\" target=\"_blank\">Lay\u2019s<\/a> potato chip? How about using Bounty Basic to clean up a spill? Those are all line extensions that have been embraced by consumers, and have proven sustainable over time.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3900\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/peanut-butter-oreo-150x150.jpg\" alt=\"Line Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/peanut-butter-oreo-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/peanut-butter-oreo-144x144.jpg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3903 size-thumbnail\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/baked-lays-150x150.jpg\" alt=\"Line Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/baked-lays-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/baked-lays-144x144.jpg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/>\u00a0 \u00a0 \u00a0 \u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3905\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/bounty-150x150.jpg\" alt=\"Line Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/bounty-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/bounty-144x144.jpg 144w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/bounty.jpg 300w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/p>\n<p>Line extensions can be very beneficial to brands. They can:<br \/>\n&#8211; Reduce product promotional costs<br \/>\n&#8211; Increase brand recognition<br \/>\n&#8211; Expand shelf space<br \/>\n&#8211; Increase profits<br \/>\n&#8211; Expand customer base<\/p>\n<p>A big risk to line extensions is cannibalizing sales from its other product lines. Brands also risk tarnishing their image when they lose sight of their core audience and value proposition. <a href=\"http:\/\/www.business2community.com\/consumer-marketing\/market-research-fail-new-coke-became-worst-flub-time-01256904#FwrW4ESlhdyLpTJ5.97\" target=\"_blank\">New Coke<\/a> flopped because the company angered consumers by halting production of the original formula. <a href=\"http:\/\/www.marketing91.com\/brand-failure-mcdonalds-arch-deluxe\/\" target=\"_blank\">McDonald\u2019s Arch Deluxe<\/a> tried to reach a segment that didn\u2019t identify with the brand by creating a higher-end sandwich, but consumers didn\u2019t bite.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3896\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/new-coke-150x150.jpeg\" alt=\"Line Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/new-coke-150x150.jpeg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/new-coke-144x144.jpeg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3908\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/arch-deluxe-150x150.jpeg\" alt=\"Line Extension\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/arch-deluxe-150x150.jpeg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/arch-deluxe-144x144.jpeg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/p>\n<p>Success is certainly never guaranteed, but brands can increase their chances of product reception by staying true to their image, targeting a specific market segment and listening to their consumers.<\/p>\n<p><span style=\"font-size: 12px; color: #d92a25;\"><strong>Brand Extensions<\/strong><\/span><br \/>\nBrand extensions are a much riskier proposition.<\/p>\n<p>Brand extensions leverage parent brand equity by introducing a product to a different, but complementary, product category. Ever use a <a href=\"https:\/\/jasonkarpf.wordpress.com\/tag\/brand-extension\/\" target=\"_blank\">Tide<\/a> To Go stick to get out a fresh stain? Or how about <a href=\"http:\/\/www.brandextension.org\/case1.html\" target=\"_blank\">Clorox<\/a> Wipes to clean bathroom and kitchen counters? Or eat Oreo Ice Cream for dessert? Those are all classic success stories of brands extending into a complementary product category.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3898\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/tide-to-go-stick-150x150.jpg\" alt=\"Brand Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/tide-to-go-stick-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/tide-to-go-stick-144x144.jpg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3901\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/clorox-wipes-150x150.jpg\" alt=\"Brand Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/clorox-wipes-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/clorox-wipes-144x144.jpg 144w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/clorox-wipes.jpg 300w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-thumbnail wp-image-3895\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreo-ice-cream-150x150.jpg\" alt=\"Brand Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreo-ice-cream-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreo-ice-cream-300x300.jpg 300w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreo-ice-cream-144x144.jpg 144w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreo-ice-cream.jpg 640w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/p>\n<p>But success isn\u2019t easily achieved. <a href=\"http:\/\/www.managementstudyguide.com\/brand-extension.htm\" target=\"_blank\">Brand extension risks<\/a> include loss of reliability if a brand is extended too far, damage to the brand image if customers are confused or frustrated, and outright failure if the extension doesn\u2019t have advantages over the competition. Consider these products: <a href=\"https:\/\/prezi.com\/9qkpz0kpnwnb\/frito-lay-lemonade\/\" target=\"_blank\">Frito Lay Lemonade<\/a>, <a href=\"https:\/\/kirstiecrotty.wordpress.com\/2014\/03\/16\/read-your-cosmopolitan-mag-with-your-cosmopolitan-yogurt\/\" target=\"_blank\">Cosmopolitan Yogurt<\/a> and <a href=\"http:\/\/www.sellingtothemasses.com\/2013\/09\/the-consumer-graveyard-colgate-meals\/\" target=\"_blank\">Colgate Kitchen Entrees<\/a>. Based on market perception and understanding of these brands, do these products make any sense? No. These all failed because the category they tried to enter was not complementary to the current category, and the products did not fall in line with the core value proposition of the brand.<\/p>\n<p><a href=\"https:\/\/prezi.com\/9qkpz0kpnwnb\/frito-lay-lemonade\/\" rel=\"attachment wp-att-3880\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3880 size-full\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Frito-Lay-Lemonade.png\" alt=\"Brand Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Frito-Lay-Lemonade.png 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Frito-Lay-Lemonade-144x144.png 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0<a href=\"https:\/\/kirstiecrotty.wordpress.com\/2014\/03\/16\/read-your-cosmopolitan-mag-with-your-cosmopolitan-yogurt\/\" rel=\"attachment wp-att-3879\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3879 size-thumbnail\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/cosmopolitan-yogurt-150x150.jpg\" alt=\"Brand Extensions\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/cosmopolitan-yogurt-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/cosmopolitan-yogurt-144x144.jpg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<a href=\"http:\/\/www.sellingtothemasses.com\/2013\/09\/the-consumer-graveyard-colgate-meals\/\" rel=\"attachment wp-att-3878\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3878 size-thumbnail\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/colgate-kitchen-entrees-150x150.jpg\" alt=\"colgate kitchen entrees\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/colgate-kitchen-entrees-150x150.jpg 150w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/colgate-kitchen-entrees-144x144.jpg 144w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a><\/p>\n<p>However, done correctly, brands can see tremendous benefits from brand extensions:<br \/>\n&#8211; Increased parent brand image<br \/>\n&#8211; Marketing efficiency<br \/>\n&#8211; Reduced risk of failure<br \/>\n&#8211; Increased market coverage<br \/>\n&#8211; Reduced risk perception by customers<br \/>\n&#8211; Revitalization of the parent brand<\/p>\n<p>Brand extensions are most successful when strong, secure brands extend into a product category that complements their core proposition.<\/p>\n<p><span style=\"font-size: 12px; color: #d92a25;\"><strong>Mitigate Risk to Parent Brand with Careful Planning<\/strong><\/span><br \/>\nA company\u2019s brand is its most valuable asset. It is a consumer\u2019s window into a brand. Altering that view in any way poses a great danger. The dilution of a brand can be an unfortunate side effect of a poor strategic extension plan.<\/p>\n<p>The decision to extend a brand has to be made through a well thought-out, strategic plan. It cannot be made hastily or under duress. Consider this: sales are down. It might be very tempting to think that quickly adding a new product or variety of an existing product is the key to righting the ship. But there are many roadblocks to successful brand extensions, and failing to plan for and overcome any of them may have dire consequences beyond loss in revenues. An extension should not be used as the solution to a problem. It is a strategic tool to tap into a potential revenue-generating market by utilizing a strong brand image to gain market share. And it is a tool that should be used very carefully.<\/p>\n<p><span style=\"font-size: 12px; color: #d92a25;\"><strong>On The Lighter Side<\/strong><\/span><br \/>\nOreo is a classic story of successful line and brand extensions. Through careful research and strategic planning, Oreo has been able to stay relevant in a market that is constantly changing with consumer tastes. It celebrated its birthday on March 6, 2016, 104 years after the <a href=\"http:\/\/www.nytimes.com\/2012\/02\/28\/business\/media\/the-oreo-turns-100-with-a-nod-to-the-past-advertising.html?_r=1\" target=\"_blank\">first Oreo<\/a> was sold to a grocer in Hoboken, NJ. March 6 has been commemorated as <a href=\"http:\/\/www.nationaldaycalendar.com\/national-oreo-cookie-day-march-6\/\" target=\"_blank\">National Oreo Day<\/a>, in recognition of the brand. In honor of such an iconic brand, we hosted an Oreo tasting party at our office to share each other\u2019s\u00a0favorite Oreo flavors, as well as our favorite ways to eat them. Here\u2019s a peek at the flavors we tasted.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3885 size-large\" src=\"http:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreos2-1024x768.jpg\" alt=\"Oreos2\" width=\"640\" height=\"480\" srcset=\"https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreos2-1024x768.jpg 1024w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreos2-300x225.jpg 300w, https:\/\/www.prejeancreative.com\/pc_blog\/wp-content\/uploads\/2016\/03\/Oreos2-768x576.jpg 768w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>Visit our <a href=\"https:\/\/www.facebook.com\/PrejeanCreative\" target=\"_blank\">Facebook<\/a> page to see what everyone\u2019s favorite flavor is and who among us are the \u201cdunkers,\u201d the \u201cbiters\u201d and the \u201ctwisters.\u201d<\/p>\n<p>Share with us your favorite flavor(s) and whether you are a \u201cdunker,\u201d \u201cbiter\u201d or \u201ctwister.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brand extensions are risky business. Companies have to remember that consumers are fickle. Brand image\/associations in the minds of the public are difficult to alter. Some brands have done it very successfully, with complete adoption from consumers. But, others have &hellip; <a href=\"https:\/\/www.prejeancreative.com\/pc_blog\/2016\/03\/15\/extending-a-brand-requires-diligent-strategic-planning\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[214,18,16,189,1],"tags":[455,458,456,457],"class_list":["post-3875","post","type-post","status-publish","format-standard","hentry","category-branding-2","category-food","category-fun-stuff","category-marketing-2","category-miscellaneous","tag-brand-extensions","tag-brand-identity","tag-line-extensions","tag-oreo-cookies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Extending a Brand Requires Diligent Strategic Planning -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/www.prejeancreative.com\/pc_blog\/2016\/03\/15\/extending-a-brand-requires-diligent-strategic-planning\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Extending a Brand Requires Diligent Strategic Planning -\" \/>\n<meta property=\"og:description\" content=\"Brand extensions are risky business. Companies have to remember that consumers are fickle. Brand image\/associations in the minds of the public are difficult to alter. Some brands have done it very successfully, with complete adoption from consumers. 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