Episode 18: Exploring Brand Stretching: Advantages, Disadvantages, and Strategies

0:01 Hey there. So do you have a favorite brand? Have you ever thought about the origin of that brand? What did it initially start out with? Was it a single product? Or did it have a full product line? Let's think about some brands like Nike, we think Nike was the first thing that comes to your mind. A lot of you may think of shoes. But Nike has expanded into a whole line of clothing, and accessories, and so much more. When a brand does that, that's called Brand Stretching. So many brands do that, and we're going to talk about why they do it, what it really is, and the advantages and disadvantages of Brand Stretching.

0:51 A BLACK HISTORY MOMENT | Charlotte Forten Grimkey was the first black teacher to work at Penn South Carolina, a school established to help educate newly freed black slaves after the Civil War. Later, she worked with the US Treasury Department to help recruit black educators. A quote from Charlotte: “May those, whose holy task it is To guide impulsive youth, Fail not to cherish in their souls A reverence for truth; For teachings, which the lips impart Must have their source within the heart.” Charlotte Forten Grimkey

1:41 You're listening to Marketing EdVenture, THE HUB for business, fashion, marketing, and other CTE educators who integrate marketing into the learning experience. I'm your host, Jacque' Walker. Each week, I'll cover marketing, education concepts, strategies, tips, trends, frameworks, and other information to equip you to connect your classroom to digital natives while cultivating an engaged learning environment. So come on into the room, where your favorite beverage snacks, and even your cell phone are all welcome.

2:22 Let's talk about Brand Stretching, I'm going to refer to it as Brand Stretching. And when you look it up on the internet, you'll find them using the word brand extension along with Brand Stretching, but sometimes brand extension also means something different. So just for the sake of our conversation here, I'm going to stick with Brand Stretching. Okay, so what is Brand Stretching, Brand Stretching is when a company or brand decides to create a new product line in a product category that they currently do not have as a part of their established brand. Now, this Brand Stretching brand extension, again, I'm gonna call it Brand Stretching, can fall into several categories and it looks different based on what that brand is trying to do. I'm just going to talk about seven different ways that a brand can stretch their name, their image and all of that. And then we're going to get into why a brand would want to do it? And then we'll talk about some advantages and disadvantages. It's positive for a lot of brands, but then it can backfire on them.

3:56 All right. So let's talk about WHY. Why does a brand want to stretch, their image, their logo, everything that they're all about their whole essence? Why would they want to, to stretch that into another category that they don't currently exist in? Well, they may want to remain competitive. Of course, revenue is a main driver, they want to increase their revenue. They want to grow with the trends that are out there right now. Or they may want to capitalize on their established name, of course, and grow in other areas. And then they just may be looking to diversify. Because maybe they've done all they could in one particular category. And they see that people really trust their name and their brand and they really want to try things out. In another category, we're going to talk about the advantages and disadvantages of doing that. As I stated before, brands can stretch in several different ways that it's suitable to whatever they're trying to accomplish by stretching their brain. So let's talk about the seven that I'm going to mention, I'm going to go through these pretty quickly and not going to spend any extended amount of time on them. But just to introduce you to the various ways that they can stretch their brand.

5:36 So the first one is a product extension. And this one is when a business releases new products that are separate from the ones that they're offering currently. And, but the items that they're offering complement the first one. So we're not going to stay in the fashion line when we talk about this because fashion can be a little bit harder to understand with brand stretching. So we'll, you know, jump around to different industries. So for this, we're going to talk about coffee. So you know, coffee makers, Folgers Starbucks, all those you know, our coffee makers. And that's their main product coffee, but they can stretch their brand. And add Kramer, Kramer complements the coffee because most people use it in their coffee. So why not create a line of creamers if you're a coffee maker, right. So that's just an example. That's a product distinction, making something that complements what you originally started to offer, just like Nike tennis shoes, they might as well offer socks, right? Okay handed in or shoe strings or what have you.

6:47 The second one is line extensions. So this is when they create a line, or even a product form that is an extension providing more options than the current product. So maybe a slight variation from the existing product offering. But it's for a very specific demographic. And it provides different sides and options. So something of that nature, we're going to go into the Health and Beauty lane is toothpaste. So a toothpaste company, you know, toothpaste has been around for who knows how long, but now they offer toothpaste for sensitive teeth, toothpaste that fights tartar, and all of these different things. So you'd go into the store and you're looking at the shelf, and you're trying to figure out what to paste to buy. Now you have so many options. So they extended their offering, stretching their brand name to include various types of toothpaste. So that's a line extension.

7:55 The third one is a customer franchise extension. So this is when a business has a loyal customer base, and is able to launch products beyond its current product category by targeting the same group of buyers. So it gives the company a broader range of products. And people trust them. So they're building their market demographic based on people who trust them. So an example of this is when a store is selling, say like soccer cleats, but they begin to sell other sports gear that target athletes and active individual with whom you know, they already have an established relationship with so you're looking at just diving more into that customer that you've already established that relationship with and you're targeting them with more items. Maybe not necessarily that you didn't stay in a soccer lane but you said okay, if we create a soccer cleats and they liked them, then hey, we can get over here and we can create slip up cleats or we can get over here and we can create uniforms are equipment that people would use who are athletic, so that is customer franchise extension.

9:22 The next one is a company expertise. Company expertise, I should say, when a company creates a related product category based on a certain skill they possess. They can use their expertise and a reputation in another product category to reach more of an audience base, right. So this may be for example, a company who sells kitchen appliances and they're popular because they're innovative and they make visually appealing designs. So because They're popular for their designs in their innovation, they may start to extend themselves into the home furniture area. Now, you know, kitchen appliances belong in the home. So a lot of times, you know, if you want those people who are into interior design, she wants to keep your brand, look, style and lifestyle consistent throughout. And so it's wise for a company that does appliances to say, hey, let's look into the area of home furniture. We can apply our same style, whether it's minimalism, whether it's bright, and attractive colors, or what have you. So that's an example of a company using their innovation. And their, what they're good at, to move into another area. And this makes me think of Sharper Image because we all know Sharper Image has this high tech, sleek, minimalist kind of look. And so when they expand into another area, you recognize that style. And you're like, I knew that was Sharper Image, right. All right. So that's company expertise.

11:15 The next one is brand distinction. So when companies have a brand distinction, they're offering products for distinct populations. And an example of this is, if a company is focused on offering organic products, such as hand soaps, then they may start providing special soaps for those that have, say, dry hands, or deal with eczema or different things of that nature. So they already are known to you know, because of the organic hand soaps. And so a person who only wants to buy organic, and they're dealing with skin issues, this would definitely benefit them, because the company that they liked to buy organic from noun is focused on offering a distinct product that's suitable for dry skin. So that's brand distinction. And a lot of these are running in the same kind of lane, but they're really pinpointing, like, what it is about the brand, extending their brand name, image, and all of the things that are related to it into another area.

12:35 Alright, so I have two more to go. Transfer of component. Now this is when a brand has distinct features on their products. Like they are eco-friendly ingredients, maybe they're bright colors, or they're soft fabric. So these are just some things that you know, this company buys, because of these distinct traits. So they use their notable taste, or their notable ingredients, or other elements about the product to attract people who already liked these features about the product. All right, and something that you can use as an example for this is say a perfume company that has a distinct scent that you like, and they begin selling that making other products that carry that same scent. So if it's say like a vanilla, you know, this unique vanilla smell, and it's a perfume, but now they're making laundry detergent or even candles that carry that distinct scent. So that would probably make you think of places like Bath and Bodyworks where you can buy one particular set in just about anything. lotions, spray soap, candles, wallflowers, whatever they have, they will have it in, they will have that set in all of those different products. So that's just a transfer of component.

14:17 And then the seventh one is extending or stretching a brand by leveraging a lifestyle. So with this, these days to talk about lifestyle, branding, you're creating a culture and a set of values for consumers and you're giving the customer something to relate to visually, such as adventurous spirit or hard working mentality. And once you've created this particular recognizable lifestyle that you're promoting with your brand, it can expand it to other items. because that will help the consumer embody that particular lifestyle. So anything that you come out with, they're like, oh, I need to get this because I love this brand, an example could be like a stationery business. And you may, you know, they may have elegant cards that you love to buy. And they may then decide to expand into offering pins, because when you have a card stationery, you need to write with something, right. So it's only suitable that that company would come out with a pin, or maybe even watches, or maybe even dishes like coffee cups or things like that, that, you know, helps that person buy into that lifestyle. Right? So that is an extension by leveraging a lifestyle. So those are the seven different types of ways I'm pretty sure if we really dive into it and look a little bit more, we could think of some other ways in which companies are extending their brands.

16:10 Hey EdVenturous Educator, did you know that CTE Month is in February? Well, in honor of you, I am giving away free fashion marketing resources. Every Friday, in February, I will have a drawing. And I will provide a free fashion marketing project or activity to the winner. So go on to my description, or in the show notes and click on Giveaway so that you can get your name in the hat, I look forward to all the wonderful winners that we're going to have. Now back to the show.

16:54 So let's talk about the advantages of stretching your brand into other categories. There is a whole list of advantages, and I won't go into every single last one of them. But I will go into let's say about five of them because there's over 20. Instead of trying to create a whole nother name or anything like that it is less risky. And it is cheaper compared to creating a whole new brand. consumers have no knowledge of the brand. They know this brand’s reputation. They know this brand’s quality, their ethics and things of that nature. So they're already familiar with the brand.

17:54 The consumers trust this thing, names and known brands. So there's a trust factor there. They know what they're getting. And another one is that consumers will more likely try a new product, if it does have the brand name on it versus some unknown name being dropped into like, “Who is this? What is that?”

18:20 And then also, it enhances the visibility of the existing brand. And you start putting your name on something that's in a different category. It may bring light to your product and your brand name to people who weren't necessarily shopping for your brand previously. Now you've crossed over into a category of products that they actually buy, they may be like, “Oh, I didn't know, this brand made this.” Now they may look into it. So it increases the chances of them purchasing.

18:57 It provides a source of energy for brands so this could revitalize a brand that kind of has faded to the back. It can help bring it back to the front and top of mind for people. This keeps popping into my head and I think about Adidas. Adidas had, you know really fallen back. And you know, Nike, of course was front of mind to everyone. But Adidas did make a surge and I noticed this when they started bringing celebrities. Let's look at Beyonce's whole line that she introduced. It didn't have anything to do with working out. It was style. It was clothing that had or trends had moved into women wearing activewear and sportswear with heels in dressy shoes. And so Beyonce then came out with this whole line of clothing, by Adidas. That put Adidas really back at the forefront. It had faded a little bit, honestly. So bringing a new energy to a brand.

20:14 There are so many advantages listed here, I’m not going to spend too much time here going through all of them. But I tell you what I will do, I will have a document that you can have access to that will have all of this information on it as far as the advantages and the disadvantages, so that you can have access to this to talk about with your students. So definitely, just check in the show notes and in the description for Brand Stretching List. And I will put that out there so that you'll have access to it.

21:01 So let's move on into talking about some disadvantages. The disadvantages are less than the advantages. Okay, right. So a disadvantage is when this new product category that you put out can overshadow your existing brand products. The one that has been your staple for all this time can become overshadowed and then you may be looking at declining sales.

21:22 Another thing is that it could work against you if you put out a new product category line. The example that's given here is like tires, Firestone tires, being used by Ford. There was a defect with the tires. So then Firestone gets the bad reputation for the tires that they've put out. It's specifically for Ford. And so I backfires on the Firestone brand. So that could happen. Because you don't do well in that category. And you could become known for not doing well in that category, your brand name is tied to it. So then people will tie that to the other products that you originally had as a part of your brand.

22:23 You could also dilute your brand identity. Then people won't recognize you as the source for a particular thing, because you spread your name too thin, and in other areas, and they won't feel like you are the expert or the “go to product or brand” for particular things. So that kind of dilutes your brand. So you have to be careful about that and make sure you're not diluting your brand, but that you're enhancing your brand.

22:53 So another thing is that because it may be too competitive in that new category, that you really don't thrive. So you're moving into that new category really, you risk the opportunity, or the chances that you will not be the front runner and you may be a front runner in your current lane. But when you go into this new category, you're no longer the front runner, which could take your name a little bit or you know, of course, lose revenue, not being the front runner.

23:30 And those are just some of the disadvantages of Brand Stretching. So Brand Stretching, all in all, is a risk that you take when a company takes when they decide to move into an alignment that they currently have not been in and decided to move into a new product category. Now, these companies do this all the time, whether they do it just by extending their existing name, or they go ahead and create a whole nother brand. So companies are always adding products, lines, trying out new things because they're always trying to increase their revenue.

24:17 Now I do have a project that I had my students to do that allowed them to create a new category of products. Using an existing brand name was pretty fun. It was very interesting. What the students would come up with definitely can point you to that in my TPT store. It's called a Brand Stretching product. It allows the students to create a new product line in a product category that currently doesn't exist for an existing brand. Because my students are fashion students, they chose fashion brand names. It was really interesting to see what they will come up with. And it is really from a teenager's perspective. Some of these companies need to listen to what the teenagers are saying. You definitely can take a look at this project in my store. It's a very collaborative project. I generally put the students in teams. It's ideal for them to be in teams of 4, where they can have a product, project manager, design and product development person, retail and logistics person and a marketing person and let them come together to create this new product line and a new category and just watch all the synergy. So definitely take a look at that in my store. I will link to it in the description and in the show notes. Once again, thank you for joining me here, and Marketing EdVenture. I hope you have a wonderfully blessed day.

26:07 Thanks for listening to Marketing EdVenture. Remember to subscribe, rate, review and share this episode with someone you think could benefit from the information shared here today. If you have any questions or want to connect with me, find me on Instagram at Marketing EdVenture. All links and resources discussed in this episode can be found in the show notes at marketingedventure.com.