Marketing Law 12 - Extensions

When you think of successful brands, the first thing that comes to mind is the product or service they're most known for. However, far too many established companies feel the need to extend their brand awareness and equity into unrelated fields. It's understandable, after all, they’ve been successful in this why not expand their business and gain more sales?

Years ago, there was a regional jet company that found huge success in their local market. They had low ticket prices, no seat assignments, and fostered a culture of fun, quirky, light-hearted experiences for their passengers. They achieved marketing and brand success and became sought after as leaders in the “new way” for airline travel. Everyone wanted to be like Pacific Southwest Airlines.

Unfortunately, PSA famously went on to try to unsuccessfully expand their brand into booking car rentals and hotel rooms…everyone needs those after a flight, right? The success they earned in the airline industry didn’t automatically translate into success in these other extensions.

Alternatively, Pepsi Max has worked out just fine for PepsiCo. But not long ago, Crystal Pepsi cost the company millions. Why? Because the clear soda contrasted with Pepsi’s strong branding of a dark cola. It just didn’t look like Pepsi. People resisted it. All in all, it was a pretty costly lesson.

As tempting as it may be, perhaps it's worth taking a step back and thinking twice before jumping into a completely unrelated field, or even a product that is too different from your current strength. Think about what your company is truly known for. Does a newly proposed product or service extension put you at risk of tainting your brand? Maybe it’s best to avoid it, regardless of how tantalizing the dollar signs begin to dance.

(Adapted from "The 22 Immutable Laws of Marketing" by Ries & Trout)