5 Best Line Extensions of 2007

What is a line extension?

Taking a brand name in one category and using the same brand name in another category. Example: Tostitos are tortilla chips and now they make Tostitos salsa.

Top 5 Line Extensions of 2007

5. American Idol Camp

An extension of the hottest reality show on television. Now kids 10-15 can live their dream and learn about the music business from the pros.

4. Virgin America Airlines

An extension of Richard Branson’s successful Virgin Atlantic Airlines. Virgin America has a unique and focused position (low-fare, long-haul airline servicing the coasts) with a coolness factor of 10 and Sir Richard to boot.

3. Newman’s Own Wine

Paul Newman started with Newman’s Own salad dressing in 1982. And today Newman’s Own sells a wide variety of products that are focused on being better for you and better for others with 100% of the companies profits being donated to charities.

2. Curves Cereal

An extension of Curves the hottest brand in fitness and largest chain of gyms in the US. Many women include cereal in their diet plan. In a category with many small brands Curves on the box makes the position crystal clear.

1. PetSmart’s PetsHotel

The way to win is by being first. PetsHotel is not the first doggie hotel, but it is the first national brand. Budweiser was the first national brand of beer.

PetSmart has the brand savvy, operational expertise and real estate connections to make PetSmart a big success. If there is one thing we love more than our kids, it is our pets, and in some cases even more.

Why do some line extensions work and others fail?

Line extensions can work when a brand moves into a complementary category that has weak competition.

Virgin Cola didn’t work because Virgin is an airline and has no credibility in cola. And Coke and Pepsi are such dominant brands there is little room for anybody else even if Richard Branson will jump off a mountain naked to promote it. Same for Virgin vodka, Virgin wedding dresses and most of the crazy Virgin line extensions.

Many people assume we are against all line extensions. Not true. Most are foolish, faulty or forgetful. But some succeed and are savvy business moves. Sometimes a brand is so powerful it is OK to dilute it with expansion especially when the competition is weak.

Just remember, the real power in branding and business is in launching new brands.

Comments

[Martin Calle]

As far as introducing your cookies, I would outsource to a door-to-door sales organization such as Cydcor on an experimental basis here in southern California. With offices in over 27 countries and across the US, they can get the word out about your company quickly. They are experts at customer acquisition and retention - kind of like walking door hangers. If for example, they went door-to-door for Kellogg Corn Flakes, I can guarantee that market share for the brand would triple in less than six months.

[Martin Calle]

One of the best developing Indian Brands in America is CEO Sumita Bahtra's Ziba Beauty. www.Zibabeauty.com

There are more.

[John Calkins]

My business is not even a blip on the map of the Brands. I am in search of being apart of conversation out of my local area. I am a business owner of a company in the food industry. I have built a web site which is crossing a marketing company with food industry. I have been selling this gourmet cookie product for a decade. The expense of the cookie has limited my outlet of sales. http://hotcookies.net is opening a new avenue of sales, which the cookie is the attention grabber and the marketing literature is the sale. The web site allows a customer to upload photos and word documents. We will create a magazine, brochure or postcard and print bake, package and mail. We are having success with our local customers, but need help reaching customers across the country.

[Varun Reddy]

Hi

Do you deal with only American Brands? As there are many Indian examples also which have great line extensions and failures too...