Tap Your Brand’s DNA for Product Extensions

By Kevin O'Donnell, May 20, 2008 — Brand extensions are one way to reinvigorate mature products by generating new sales while retaining the loyalty of existing customers.

But too many lack the benefit of solid strategic thinking. Instead of extensions that capitalize on the relationships the brand has built with customers, you’ll often see logos slapped on a new offering, which is then whisked into the marketplace with predictably disappointing results.

Some of the most interesting extensions take a counter-intuitive approach when targeting a new market segment, combining inspiration and insight driven by a deep understanding of the core DNA of the brand.

Thinking like this produces something like Swash, the “anti-clean” products marketed by Tide. Aimed at young adults who lack the time or inclination to do laundry, Swash offers everything from a clothing dewrinkler to a stain remover to a scented lint brush. The marketing thrust focuses on convenience, noting, “Swash helps keep the clothes you love to rewear feeling clean and fresh.” It also pushes the social responsibility button by arguing that putting off laundry day helps conserve water.

Avon has been very successful with its extensions into the marketplace of men – a counterintuitive move for a company that describes itself as “the company for women.” These days it’s also the company of Derek Jeter and the guys, marketing them everything from a Jeter-endorsed line of scents called “Driven,” to anti-aging creams to boxer shorts. The male-oriented products are credited with helping to boost Avon’s annual sales by 40%.

These hypercompetitive times require businesses to move beyond brand management to brand leadership. Intelligent brand extensions are part of the process. Studies show that brands are far more elastic than marketers imagine, making the argument for taking more risks, rather than fewer since the downside isn’t all that dramatic.

And that’s what separates leaders from managers: Not the degree of aggressiveness they display in extending the brand, but the degree of thinking that tempers the risk.