 |
|
At Wray Ward, our minds never rest. Constantly, perpetually, incessantly, we think about better ways to position brands, market products, and grow our clients' businesses. We hope you’ll enjoy the thoughts in the following column on the changing nature of ways to extend your brand. If you’d like to hear more about our thinking, just reply or call me at 704.926.1345. Best regards, Kent Panther |
||
|
Forget Line Extensions. Extend the Experience Instead. Line extensions are often an indication that a company has run out of ideas (which is probably why there are so many of them). Everyone knows the theory of line extensions: Take an established brand and extend it, either creating new customers or capturing higher margins from existing ones. Turns out, line extensions are often expensive and have a bad habit of cannibalizing themselves. The signs are everywhere; the line extension strategy is overused, under-thought, and fast losing ground. For companies seeking profitable organic growth, a strategy of extending the customer's experience can be the way to go. Here’s how it works: Understand how your customer defines your brand and then extend their experience with it. Bring them products or services that broaden that experience, evolving with them as their needs change. Honda was one of the first to grasp the potential of this experiential approach. Aging Honda Civic owners wanted a prestige car with the reliability of a Honda but without the economical image associated with the brand. So, instead of a line extension (as Honda has done in Japan where their high-end product is called the “Honda Legend”), Honda brought out a new shadow-endorsed brand – “Acura.” Think of Disney. Think of NASCAR. Their brand experiences seem endlessly extendable. Think of Starbucks. The Starbucks experience spans even into special release CD’s, generating higher margins than their coffee (and that's saying something). Sunbrella, the leading brand of outdoor fabric and a Wray Ward client, has realized great success by extending the experience. With the fabric known for its ability to withstand the elements while retaining its beauty, the company envisioned how its customers lived inside their home and saw an opportunity. If Sunbrella could withstand hurricanes, it could certainly withstand a three-year-old. Consumers and retailers alike were highly responsive to offerings that brought proven Sunbrella performance to all sorts of home furnishings. So, if the thought of yet another line extension feels uninspired, try a new approach – extend the experience instead. Can we help? Contact Kent Panther to find out…
|
|
wray ward
|