Extension

First there was Coca-Cola.

Then there was Coca-Cola and Diet Coke.

Then there was Coca-Cola, Diet Coke, and Cherry Coke...and Coke Vanilla...and Coke zero...and...and....

Marketers call this “extension,” and the idea is that consumers will try the new product because it's related to the old in some way.
Just imagine if a local company rolled out a caramel/vanilla soft drink & called it “Vanilla.” Would anyone buy that product?The difference in that and the Coke scenario is that Coke has spent billions creating a brand with equity, and consumers are willing to try the new product.

Let's move down the grocery aisle a bit. Reese's used to be only associated with the chocolate-on-the-outside-peanut-butter-on-the-inside candy that comes in the orange wrapper. Consumers assign value to Reese's – they must be peanut butter experts, since that's what makes their candy so delicious. Here's a short list of the current Reese's product lineup:

• Reese's Peanut Butter Cups (ah, the original)


• Reese's Pieces candy


• Reese's Fast Break candy bar


• Reese's Peanut Butter Big Cup (an oversized Reese's cup with twice the peanut butter)


• Reese's Whipps candy bar


• Reesesticks wafer bars


• Reese's Crispy Crunchy Bar


• Reese's Nutrageous candy bar


• White Reese's Peanut Butter Cups


• Reese's Peanut Butter Cups with Caramel


• Reese's Select Clusters


• Reese's Select Peanut Butter Cremes


• Reese's Dark Chocolate Peanut Butter Cups


• Reese's Peanut Butter (in a jar)

13 different products – all associated with the chocolate and peanut butter combination in some way. Some are product extensions (an oversized Reese's cup) and others are brand extensions (Reese's peanut butter), but all leverage the value of the Reese's brand.

Two things happen with extensions: increased opportunity for profit; and increased risk to the brand.

If someone likes a toothpaste I make (let's call it Seaford's Finest Toothpaste), then that person might like some Seaford's Finest Toothbrushes to use with the toothpaste. All is well, consumer's happy, and I've doubled my revenue.

With that success under my belt, I might try some Seaford's Finest Mouthwash as well, and it's another hit! What else can I create?

Most people rinse their mouths after they brush, so maybe some Seaford's Finest bathroom cups to go with it. Sales are not what I had hoped, but respectable.

Since most people brush their teeth in the bathroom, I decide to roll out Seaford's Finest Sinks & Showerheads. Fails miserably.

A successful extension is within the value of the brand to the consumer. That is, if I'm an expert on dental hygiene, then I can create products within that space. When I leave the realm of healthy white teeth and explore bathroom remodeling, it begs the question in consumers' minds: what does the toothpaste company know about porcelain & stainless?

Everything has a brand. You have a brand. So does the company you run or work for; your family; your friends; even where you spend your time outside of work.What is your brand? What can you do to extend it? How can you protect it?