This document provides information on extending brands into new markets. It discusses determining the bounds of a brand's extendibility, developing concepts for new products or services, and validating opportunities through research. The challenges of brand extension include a lack of market need, poor execution, and ideas that are not inspired by or relevant to the core brand. Successful extensions require finding opportunities that fit within the brand's attributes and equities while also creating new relevance.

1. Extending Your Brand into New Markets
June 2010

2. “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
SuppliersEmployees
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
& InspirationBuilding, 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 FitWeak 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 DNACompany Capabilities
Hidden Assumptions
What unique assets, skills,
technologies can we
repurpose or harness?
Trend Analysis
Consumer Insight
1 2 3
4 65
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 ContentWritten 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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