44) The Elusive Art of Brand Extensions
In today's discussion, Sharan & Sudeep tackle a topic that seems deceptively simple yet proves to be a formidable task, even for the largest companies: Brand Extensions.
The discussion begins with an intriguing case study juxtaposing Veet hair remover cream with the fairness cream category. Both used heavily by men, but when the brands launched a male specific sub-brand, one boomed and the other bombed. This stark contrast piques the curiosity of our hosts, prompting them to explore the intricacies of brand extensions.
Brand extension, as they uncover, is the process of utilizing the equity of an established brand to introduce a new product in another category or sub-category. It allows businesses to leverage the existing brand equity, avoiding the need to start from scratch and benefiting from the groundwork that has already been laid.
However, what is it about brand extensions that even the largest companies find so challenging? The discussion unveils the key factors that contribute to this vulnerability. From the importance of transferrable brand equity, complementary products to avoid cannibalization, and the competence to deliver on the brand promise, to the necessity of effective communication despite assuming automatic equity transference, Sharan and Sudeep navigate the complexities involved.
Sudeep also shares a compelling real-life experience of the options considered and decisions made at Mondelez India, before picking Cadbury Gems to combat Ferrero’s Kinder Joy.
From success stories and cautionary tales, this episode is loaded with examples like Cadbury Eclairs, Lysol, Harpic, Good Knight, Nupur Henna, and even Michelin tyres extending to Restaurant Ratings, to unravel the valuable lessons.
Listen in as we uncover the nuances of Brand extensions and dig into why they can be simple yet difficult to get right, even for the most prominent companies in the industry.
Do send your feedback and questions to mail@cobbcast.net
CREDITS
- Album Art & Design by ting.in of the Black & Yellow show
- Voiceovers by Anjale Stephanos
- Edited by Janhavi Pethkar
- Music from Zapsplat.com
