Successfully Extending Your Brand

Propr ietary & Confiden0al

brandgrowthstrategy

SuccessfullyextendingyourbrandWebinarpreparedforandfacilitatedonbehalfof:

AudioSolutionz

MitchDuckler

[email protected]

PROPRIETARYANDCONFIDENTIAL

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BrandExtendibility“HallofShame”

BurgerKingBoxers

HarleyDavidsonPerfumeHootersAir

Dr.PepperMarinade ChickenSoupforDogLovers

ArizonaTeaNachos‘nCheeseDip


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WhichofthefollowingisTHEworstexampleofbrandextension?

a)BurgerKingBoxers

b)Dr.PepperMarinade

c)ChickenSoupforDogLovers

d)ArizonaTeaNachos‘nCheeseDip

e)HootersAir

f)HarleyDavidsonPerfum

PollingQuestion#1


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BrandExtendibilityDefined

ExisRngBrands

BrandExtendibility

BaseBusiness

NewProducts

NewBrands

SourcesofOrganicGrowth


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TheBenefitsofBrand-drivenGrowth

Products&Services

Brands

ExisR

ng

New

ExisRng New

MarketPenetraRon

BrandExtendibility

PorUolioExtendibility

NewProductDevelopment

HigherRisk

TypicallyLessImpacUul


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JusttheFacts…

0

20

40

60

80

100

BrandExtensionFailureRate* BrandExtension3-yearSurvivalRate**

BrandExtendibilityTrackRecord

Ernst&Young,2013

84

54


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BarrierstoSuccessfulBrandExtendibility

Ernst&Young,2013

NoMeaningfulMarketNeed

Demand

ThereisaNeed,buttheSoluRonisUninspiring

Supply

ThereisaNeedandanInspiringSoluRon,butthe

BrandisWrong

BrandRelevance


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Whatisthemostchallengingaspectofextendingbrandsforyourcompany?

a)IdenRfyingcustomerunmetneeds/whitespaces(demand)

b)DevelopingcreaRve/inspiringsoluRons(supply)

c)Determiningappropriatefitwithbrand(brandrelevance)

PollingQuestion#2


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Reason#1:NoMeaningfulMarketNeed(Demand)

§  Addressingtheneedisnotprofitable

UnderlyingComponents:

§  Noneed;difficulttocreateneed

§  SaRsfactorysoluRonsalreadyexist

§  TheunmetneedistoonicheTrackplantgrowthandwatchanenRregrowingcycleinseconds!

Demand SupplyBrand

Relevance


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ThinkBroad

DimensionsforUnderstandingConsumers

PersonalValues

RelaxaRon/Recharging

RoleofFriends&FamilyinLife

MoviesonDVD/Blu-ray

RoleofEntertainmentinLife

HomeEntertainment

AktudesTowardFreeTime

Broad

Specific


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TheLatencyEffect

“IfIhadaskedcustomerswhattheywanted,theywouldhavetoldmeafasterhorse.”−HenryFord

§  CustomersareomenunawaretheyevenhaveaparRcularneed(latent)

§  Customersmaybeawareofaneed,buthavetroublearRculaRngit(tacit)

§  Someofthemostsuccessfulnewproductsandbrandextensionsinhistorywerenotinspiredbyanar9culatedneed

Noneoftheseproductsaddressedawidelyrecognizedproblemthat

anyofushad


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ImportanceofPrecision

“Ifyoudon’tknowwhereyou’regoing,anyroadwilltakeyouthere.”−LewisCarroll

§  Bigproblemsandchallengesareomencomprisedofsmallercomponentchallenges—eachofwhichhasdifferentidealsoluRons

§  Performance—IsitaboutproducRvity?Accuracy?Throughput?Speed?

§  Convenience—Isitaboutspeed?Ease?Simplicity?Portability?

Howcana9-hoursoluRonsolvetheproblemofdinner

preparaRontakingtoolong?


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BeyondProblems….Opportunities

“EffecRveinnovatorsdon’twaitforproblemstoarise.Theyfixwhatisn’tbrokenandimprovethingswithnoapparentdeficit.”−DennisStauffer,ThinkingClockwise

§  UncoveringopportuniResthatarenotinherentlyproblem-solvinginnaturerequiresadifferentapproach

§  It’slessaboutaskingcustomerswhattheythink/want…

§  It’smoreaboutobservingwhatcustomersactuallydo—“andconnecRngthedots”

Consumersweren’texactlysikngaroundthinkingtothemselves,“Gee,ifonlyIhad

atablet…”


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SmokelessCigareues…

“producedaflavorandasmellsooffensivethatitlemusers

retching…”

Reason#2:UninspiringProductorServiceSolution(Supply)

§  “FlavoroftheDay”offering

UnderlyingComponents:§  SoluRonnotalignedwithneed

§  LackofimaginaRon/creaRvity

§  “Sideeffects”orotherdrawbacks

Demand SupplyBrand

Relevance


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SourcesofInspiration

§ CoreCompetencies§ Cross-BUCollaboraRon§ R&DandContracted§ Partnerships§ SupplierCollaboraRon

Company

§ R&D§ Vendors§ UniversiRes§  JVs/Alliances§ Analogies&Metaphors Product/

Technology

§ BusinessModelLevers§ BestPracRces§ CaseStudies§ DeliveryChannels§ ServiceModels

BusinessModel

§ FuncRonalAuributes§ EmoRonalBenefits§ CoreValues§ Personality§ BrandLeversBrand

§ CustomerInsights§ GlobalTrends§ NeedPlaUorms§ DigitalIdeaRon§ CustomerParRcipaRon

Customer


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DefiningYourFrameofReference

WorkoutT-shirts

SporIngGoods

AthleIcApparel

Lifestyle&Fitness

Health&Wellness

Pedometers

RunningShoes

Jerseys

Shorts

SocksSweatshirts

Footballs

GolfClubs

HockeySkates

Basketballs

TennisBalls

SoccerNets

KneeBands

TrailMaps

HikingGear

MountainClimbing

CampingGearPreparedMeals

PhysicianNetwork

WellnessWebsite

NutriRonPlans

FitnessBands

HeartMonitors


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ThePowerofConvergence


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Cross-PollinatingtheUnlikely

Mash-ups

+Usingthesamedesignasaweedwhackerwithamotorononeendandanimpellerattheother,aminiaturecomputer-controlledheartpumphasbeendesignedtohelp

paRentswaiRngonthetransplantlist.

HowWouldXApproachY?

+IfGooglewereinthebusinessof

manufacturingnutsandbolts,howwouldtheygoaboutit?Inwhatwayswouldtheirnutsandboltsbedifferentfromothersonthemarkettoday?Whywouldtheybe

differentandbeuer?


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EBaysellinggoodsatfixedpricesmadenosenseforthebrandorto

consumers…

EBayExpresswasaconfusingandcontradictoryconcept

Reason#3:LackofBrandRelevance

UnderlyingComponents:

Demand SupplyBrand

Relevance

§  Basebrand“baggage”

§  Lackofcredibility

§  Inconsistentpersona

§  Contradictoryprice/valuerelaRonship


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BrandCredibilityFootprint

BrandFootprint

Dimension1

Dimension3

Dimension2

Dimension4

Dimension5

Dimension6

Dimension7

Dimension8


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IllustrativeDimensions/Axes

CategoriesSpices Seasonings AppeRzers MainEntreesSideDishes

SegmentsToddlers YoungKids Tweens YoungAdultsTeens

PricePointsEntry Value Mid-Price LuxuryHigh-End

OccasionsBreakfast Snack Mini-Meal DinnerLunch

EmoRonsMeditaRve Calming Relaxing SRmulaRngEnergizing


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PollingQuestion#3:

Whatisthemost‘dimension’yourcompanyconsiderswhenextendingbrands?a)Productcategory

b)Customersegment

c)Usageoccasion

d)FuncRonalbenefit

e)Somethingelse


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Example—ExtendingAlongCategories

Categories

DesktopSoPware

TODAY

CloudSoluIons

SubscripIons/Licenses

Notdoingtoday,butthereishighcustomerpermission…

seenprimarilyasnewplaUorms

Value-addedReseller

Credible“stretch;”butwouldlikelyrequiresomeconvincing

ConsultaIveServices

Off-brand;Notabletospanfroma‘mass’to‘custom’

Company:FinancialPlanningSoPwareDeveloper


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Example—ExtendingAlongCategories

Categories

Everyday/RouIne

TODAY

CrunchedforTime

Portable/On-the-Go

Lackofdrive-thruwindowmakestheseoccasionsabitmorechallenging,butsRll

have‘permission’

SeekDifferentExperience

Basicfoodfaremakesthisabigstretch;

wouldneedto

significantlyaltercuisine/menuoffering

SpecialOccasion

Off-brand;Highly

funcRonalnatureofbrandisadisconnect

Company:‘FastCasual’

RestaurantChain


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Example—ExtendingAcrossDifferentDimensions

EmoIonalBenefitsFuncIonalBenefits

§ Setsambiance§ Eliminatesodor§ Releasesscent§ Illuminates§ Cleans

§ Trustworthy§ Welcoming§ Homey§ Family-oriented§ Soothing

§ Diffuser§ Candles§ Plug-ins§ Sprays

ProductAYributes


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ThePoweroftheIntangibles

“AtCaterpillar,webuildthemachinesthathelpourcustomersbuildabeuerworld.Thebootsandshoeswebuildaremadewiththesamecommitment.”

“ExcellenceisaconRnualquestattheTatagroupandTatacompaniesaresupportedintheireffortstoachieveworld-classstandardsinallaspectsofoperaRons...”


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PartingThoughts…

Thehardpartislettinggoofwhatworkedforyoutwoyearsago,butwillsoonbeoutofdateRoger Von Oech


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ClicktoeditMastertitlestyle

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Thankyou

Marketing

Successfully Extending Your Brand