Extending Your Brand into New Markets

June 2010

“If you don’t know where you want to go, any road will get you there” Lewis Carroll

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How do I extend my brand into new markets?

Five Best…

Five Worst…

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Where brand meets innovation

Brand Extendibility

Brand Innovation

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Vendors

Customers

Partners

Developers

Suppliers Employees

Retailers

Strategic Positioning Statement of strategic intent, encompassing the

best Framed Need and Benefit the brand seeks to get the market to believe and participate in

Includes Brand Attributes (which can be a

combination of experience and persona elements)

Micro-Positions Tailored and relevant articulation of the framed

need to a particular stakeholder

Includes Critical Enables, elements of positioning required to deliver relevancy

to stakeholders

Stakeholders

Strategic Positioning

Relevant constituents who either impact and/or are impacted by the brand

Micro-Position

Micro-Position

Micro-Position

Micro-Position

Micro-Position

Micro-Position

What is brand?

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Strategy & Leadership

Creating and executing innovative growth strategies and engaging leaders and the overall organization to understand, believe and live them

Products & Services

Identifying market and consumer insights and translating them into innovative new products, services, business models, experiences and reenergized brands

Organizational Capabilities & Culture

Building an innovation capability by developing the required skills, culture, leadership, metrics, processes and tools to sustain innovation over time

Strategy & Leadership

Products & Services Organizational Capabilities & Culture

Business Growth

What is innovation?

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Which of these ranks as the worst brand extension in recent memory? a) Cheetos Lip Balm

b) Burger King Boxer Shorts c) Hooter's Airline d) Harley Davidson Cologne

Audience Polling #1

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Remember these?

Burger King Boxers

Pepsi Blue

Harley Davidson Cologne

Hooters Air

ESPN Restaurants

Kraft Probiotic Cheese

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Why do so many brand extensions fail?

• No need for product or service

Market

• Botched execution or launch

Execution

• Off-brand and/or uninspiring

Brand Relevance

1 2 3

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Market Opportunity

Just what we need… another pizza chain

Execution

Right idea, wrong execution

Why brand extensions fail: examples

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Brand Relevance

Another day, another flavor

Brand Relevance

Swinging bachelors don’t dye their own hair

Why brand extensions fail: examples

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The sweet spot

Market Opportunities

Organizational Opportunities

Brand Relevance & Inspiration Building, buying,

and outsourcing new capabilities

Creating new brand relevance

Creating new markets

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Why brand relevance and inspiration?

›❯  Equity

›❯  Heritage

›❯  Reputation

›❯  Feedback

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What is the most challenging aspect of extending brands for your company? a) inability to identify customer unmet needs/white space

b) lack of inspiration/creativity c) inability to evaluate potential opportunities/select “winners” d) poor execution/implementation

Audience Polling #2

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How do I stay relevant and become more innovative with my brand?

1 Determine Equities & Bounds of Extendibility

2 Inspire & Ideate

3 Develop Concepts

4 Validate Opportunity

How do I stay relevant and become more innovative with my brand?

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Product Attributes

Emotional Benefits

Functional Benefits

•  Sets ambiance •  Eliminates odor •  Releases scent •  Illuminates •  Cleans

•  Trustworthy •  Welcoming •  Homey •  Family-oriented •  Soothing

•  Diffuser •  Candles •  Plug-ins •  Sprays

Step 1: Brand attributes & equities

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Continuums

Package

Scent

Location

Price

Functional

Proxies

Strong Fit Moderate Fit

Spray Gel Candle Oil Potpourri

Natural (Grass) Floral (Rose) Fruit (Cherry) Spice (Cinnamon) Seasonal (Spring)

Bathroom Kitchen Living Space Garage Car Office Body

Budget Parity Premium

Eliminates Odor Complements Home Decor Releases pleasant smells Kills Germs

Emotional

Calming/Relaxing Welcoming Trustworthy Believable

Weak Fit Weak Fit

Weak fit

Bounds of extendibility

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•  Focus Groups

•  Ethnographies

•  Interviews

•  Consumer trends

Qualitative

•  Brand Equity

•  Pathways Modeling

•  Quick-hit surveys

Quantitative

Exploring research techniques

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Customer Insights

Experiential Analogs

Brand DNA Company Capabilities

Hidden Assumptions

What unique assets, skills, technologies can we repurpose or harness?

Trend Analysis

Consumer Insight 1 2 3

4 6 5

What associations of our internal brand can we leverage?

What are the unmet or unarticulated needs and wants we can serve?

What trends inside and outside of our industry should we pay more attention to?

What “look at more stuff” stories are out in the world that can inform our work?

Can we challenge the way the industry and our company typically does business?

Step 2: Sources of inspiration…

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•  Attractive •  Simple •  Balanced •  Accurate

•  Clear •  Concise •  Engaging •  Compelling •  Relatable •  Facts (price,

location, size)

3

Visual Content

Written Content

Step 3: Concept guidelines

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Example concept

Feeling frazzled after a long day? About to storm through the door without taking time to unwind? Let Glade’s New Scent Release Welcome Mat help you leave everything behind.

Upon contact, the mat releases 4 light puffs, filling your doorway with pleasant aroma of your favorite scents.

The New Scent Release Welcome Mat by Glade…Freshness at your Feet.

Available in Lavender, Cotton & Spa

Priced at $15.99

Introducing The New Scent Release Welcome Mat by Glade… Freshness at your Feet!

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•  Focus Groups

•  Interviews

Qualitative

•  Choice Modeling

•  Volumetric Modeling

•  Surveys

Quantitative

Step 4: Concept testing

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