A robust brand extension strategy is essential to flourish and maintain relevance in today’s hyper-competitive marketplace. In some ways, it represents the most straight-forward and logical way to achieve profitable brand growth, yet many companies struggle with how far to stretch, where specifically to extend, and how to ensure success. This perhaps explains why the failure rate for such efforts is as high as 90%. Play it too safe and the likely result will be close-in, ho-hum line extensions that underwhelm customers and are short-lived in the market. Stray too far from your brand’s core positioning and you risk diluting valuable equity.
In order to be successful, it is important to make sure you are: 1) addressing a meaningful market need, 2) offering something unique (or at least differentiated), and importantly, 3) remaining true to your positioning and what you stand for. While respecting guardrails and protecting equity is imperative, it's also important to view brands as a source of inspiration for innovation and new product development. We help companies develop impactful extension strategies that leverage emotional and intrinsic equities, address high-potential unmet customer needs, and result in financially lucrative and commercially viable business opportunities.