Understanding Consumers and Channels +

Assessing Strategic Implications = Successful Brand Line Extensions

Our experienced brand strategists and research team will help you leverage opportunities and navigate potential issues.

One often-used means to grow a brand is through extensions—using an established brand name or trademark on new products or in new product categories. Despite the potential benefits, however, only about 20% of brand extensions succeed.

One common issue that can derail an extension strategy is failure to understand whether the category extension has “permission” from consumers loyal to the core brand to operate in the new category. Another is not identifying whether the brand extension dilutes or denigrates the core brand. Missteps in either area inevitably lead to lack of consumer engagement and subsequent channel partner rejection.

The Bloodhound Group takes a holistic, ground-up approach that includes validating all assumptions and closely examining consumers’ emotional connection to your core brand. Our process includes:

Insight

  • Category exploration
  • Assessing customer permissions/transferability of brand skills and assets
  • Determining leverageable/salient brand associations
  • Measuring core brand awareness across categories
  • Evaluating potential core brand enhancements
  • Projecting potential core brand dilution

Strategic Options

  • Prioritizing the range of product category options
  • Creating brand naming alternatives
  • Conducting test marketing to determine likely channel acceptance
  • Evaluating regional vs. national rollout
  • Exploring sub-branding

Execution

  • Production (internal vs. licensing or outsourcing)
  • Product/service packaging
  • Marketing strategies
  • Communications campaign