Done Well, Brand Stretching Means More Consumers and More Sales

While staying focused ("close to the knitting" was a term used back in 1980's) is a key for any great brand, there can be real opportunity for some brands to extend out, into completely new categories, if they truly understand what their brand stands for, in the minds of consumers.

Take the Walt Disney Company, for example. Started in 1923, it focused on motion pictures. This made sense - it was what Walt and Roy understood and were good at, and consumers loved their product. Then, with the growth of television, WDC expanded into TV, with the "Disneyland" series. It could have ended there, with just more movies and more television series. But someone understood that Disney stood for something more, something bigger, something incremental. Someone understood that Disney stood for "wholesome family fun".

Armed with this insight, in 1955, WDC introduced the Disneyland Theme Park in Anaheim, California. Not only is it fully incremental to the movie and TV business, but it is reinforcing of the brand promise. Today. WDC holdings include: Walt Disney Studios, Disney Music Group, Disney Theatrical Group, Disney-ABC Television Group, Radio Disney, ESPN Inc., Disney Interactive Media Group, Disney Consumer Products, Disney India Ltd., The Muppets Studio, Pixar Animation Studios, Marvel Entertainment, UTV Software Communications, Lucasfilm and Maker Studios. Note that in areas where the Disney brand name does not provide a reinforcing benefit, or may actually be counter to the Disney brand promise, another brand is leveraged.

Let's look at another - Special K. Here is a brand that, for years, was a one dimensional RTE cereal. Looking like Rice Krispies with a tan, it was consumed primarily by women, based on a diet positioning. It was the healthy lifestyle breakfast cereal brand, and gave birth to a number of RTE line extensions. Great, but at some point LE's begin to eat their own young. Then, it was expanded to the healthy lifestyle breakfast brand, with the launch of breakfast bars, drinks and frozen breakfast sandwiches. These were far more incremental, moved the brand into new sections of the grocery store, and all worked to reinforce the brand promise.

Then the big move - savory snacks. This flowed from the very logical stretch of Special K to the healthy lifestyle food brand. Now a whole new daypart and another new section of the store. Amazing. Can Special K stretch to be the healthy lifestyle brand? Could Special K be credible in workout wear or fitness centres? I am not sure, but it is certainly worth doing the research to find out.

The key is to not stretch to the point of snapping - it has to be true to the brand. The consumer needs to be able to see the brand credibly offering that product. As well, the brand may be able to go places that the brand owner's structure and skills cannot. Here is where licencing the brand can be a viable strategy. We did this with Del Monte, leveraging its real fruit goodness promise, in a licence with Nestle, to produce and sell Del Monte Real Fruit frozen bars.

One last one - Grey Goose Vodka. Made in France, synonymous with luxury, celebrity, sophistication and success. Where could this brand look to stretch, to a category that is incremental, but reinforcing?

Can anyone say champagne? Cheers!