Dear Martin,
I?m glad that my findings for your brand extension question were useful!
Here is a copy the information.
FTD Floral Company
?Floral company FTD plans to extend its brand into home decor,
gardening and gifts under the FTD Collections umbrella.?
?FTD Lawn and Garden will include gardening gloves, tools,
wheelbarrows, flower pots and seeds. FTD Home, covering home decor and
improvement, will range from wallpaper to paints and fabrics to throw
rugs. FTD Occasions will feature gift products that can be
thematically grouped and will include flatware, vases and chocolates.
The new lines will have broad distribution to mass merchants and
specialty retailers and will be supported with significant media
spending. FTD, Downers Grove, III., spent $13.1 million in 2000, per
CMR.?
Brandweek, May 7, 2001,
http://www.findarticles.com/cf_0/m0BDW/19_42/74521258/p1/article.jhtml
Brand extensions heat up as vendors get creative.
Lego:
?Lego has probably taken this theme further than others by introducing
its brightly colored construction bricks into the conventional apparel
and media families. But it has also ventured into three vastly
different fronts in recent years, with the creation and expansion of
its Legoland theme park program (opening soon in Carlsbad, Calif.),
its Mindstorms robotics division and now with its Playseat Vehicle
Activity Center, created in partnership with Johnson Controls.?
Discount Store News: March 8, 1999
http://www.findarticles.com/cf_0/m3092/5_38/54121693/p1/article.jhtml
The case of National Geographic:
"We are the most successful example of magazine brand extension," said
Loreen Ong, president of the National Geographic Channel, which is a
joint venture between the magazine and Fox Cable Networks. "It really
goes back to what the National Geographic brand happens to be. It's
about exploration, science and adventure. It's about spectacular
imagery and great storytelling."
Yahoo News
http://au.news.yahoo.com/031210/11/mvgf.html
Brand Extensions
?It seems that everywhere we look these days we see brand extensions.
Jim Beam?s name is now on barbecue sauce, Dannon is selling Dannon
water. The Sony name is on everything from Playstations to Walkmans to
digital phones, DVD players, notebook computers to even record labels.
The list is endless- Jello Pudding Pops; Skippy Peanut Butter Bars,
Ralph Lauren sheets. Bic even once tried to put its name on perfume.?
Marketingprofs.com
http://www.marketingprofs.com/preview_dp.asp?file=/Tutorials/brandextension.asp
Statistics:
?The average innovative non-food brand extension with at least one new
category benefit delivered a 66% higher year one sales return.?
?over the most recent six reports, non-food Pacesetters providing at
least one "innovative" new benefit represented 26% of new brand
extensions. The majority ? 74% of the total 502 successful new brand
extensions ? were judged to be close copies of lead brands within
their categories, lacking new benefits versus consumers? category
expectations.
While "cloning" the category leader is usually safer and easier, the
continual squeeze for space risks being "me-too"ed off the shelf.
Innovation truly pays out. New competitively superior line extensions
over the 1997-2002 period reaped higher year one returns. The average
innovative non-food brand extension delivered a 66% year one sales
bonus compared to the average cloned extension.?
Information Resources, Inc.
http://www.infores.com/public/timesandtrends/tt_factoid44.htm
Pie Charts
http://www.infores.com/public/timesandtrends/images/tt_factoid44.jpg
Download PDF
http://www.infores.com/public/timesandtrends/tt_issue13.pdf
Astounding failure rates
?According to a 1997 US study by Ernst and Young, there is a 67%
failure rate among truly new products (meaning products that actually
create a new category). New brands entering an existing category
experience a 50% failure rate and perhaps most surprising, they found
an 84% failure rate among brand extensions. The reason for this high
failure rate among brand extensions? Ernst and Young cited a
fundamental lack of competitive differentiation. The proliferation of
undifferentiated brand extensions is symptomatic of a discipline that
is in desperate need of some prescriptive principles regarding brand
architecture.?
?According to Eileen Roche in the March, 1999 edition of Harvard
Business Review, 90% of all new consumer packaged goods introduced
each year are line extensions. When you factor in the escalating costs
of new brand launches it is not surprising to see so many line
extensions. However, there may be a false economy in this thinking. A
study by Research International in London showed that line extensions
rarely add more than 10% to sales ? while according to Deloitte and
Touche, most fail completely.?
Fallon Brand Consulting
http://www.fallonbrandconsulting.com/article03.shtml
Eighty percent of successful new products are brand extensions
?CPG execs understand the impact of having products that cross several
categories at retail through brand-extension licensing (think Oreo ice
cream). Eighty percent of successful new products are brand
extensions, says Kirk Martensen, president and founder of
Chicago-based licensing consultancy Goldmarks.?
?It certainly is a more economical way to go when you are bringing out
a new product with an existing brand,? Riotto says. ?You already have
consumer awareness and trust.?
Promo Magazine: Apr 1, 2003
http://www.promomagazine.com/ar/marketing_branding_exclusivity/
75% new products are brand extensions
?Brand Extension Branding: Use one of its existing brand names as part
of a brand for an improved or new product, usually in the same product
category.?
University of Delaware
http://www.udel.edu/alex/chapt12.html
Brand trends for 2003
The founders of Idea Engineers, Mandy de Waal and Janice Spark, look
at brand trends for the coming year and beyond.
Brand extensions will drop off, while marketers will realize the value
of old-fashioned service.
?In a frenetic market, marketers will learn that less is more and that
the road to increasing market share is paved with good, old-fashioned
service. In recent years brands have increasingly engaged in
extensions to increase market share. The coming years will show that
there is power in a narrower focus as brands return to the basics and
companies learn that growth is often achieved through the simplest of
things ? brilliant service.?
Idea Engineers: Press Release
http://www.biz-community.com/PressOffice/PressRelease.aspx?i=209&ai=1373
Bic is another example of Brand Extension.
?For example, Bic? is a strong brand name with years of experience in
marketing low-cost disposable plastic products such as the Bic? pen.
Thus, Bic is positioned well to introduce products that capitalize on
these same basic strengths ? products such as disposable razors and
cigarette lighters.?
Brand Leveraging: August 2002
http://www.extension.iastate.edu/agdm/wholefarm/html/c5-30.html
Here?s an interesting document about Gillette and Bic.
http://cursos.itam.mx/bruce/Merca%201/Cases/Case%20-%20Gillette.doc
Search criteria:
Brand Extension OR extensions +marketing
Thanks again for such interesting questions!
Best regards,
Bobbie7 |
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