The fallacy of megabranding: Keeping brand extensions relevant

 In International
When years of blockbuster success are followed by flagging growth, it is tempting for older brands that still enjoy high consumer awareness and stable base volumes to try to stimulate growth by moving into other categories. That desire becomes an excuse to misread the brand’s actual cultural meaning and look for some overly aspirational cross-category hook.
While incremental revenue is possible with this strategy, it may not be very sustainable, especially if management mistakenly assumes that their brand’s “equity” will easily overcome leaders in another category (which likely possess large marketing budgets focused on just that category).
These extension strategies work best for brands that are extremely strong, contemporary and linked tightly to emerging distinctions in food culture that are gaining momentum. Above all, focused category extensions work the best.  The Hartman Group – Read more…

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