Extending your Brand

Near the beginning of the semester, our class learned about Brand extensions. The most important thing about brand extensions (and surely the only way companies can make money out of them) is if they’re relevant to the brand. The company might make money on the initial product sell, but it could be destructive over time. Stock prices might not go down right away, but over time a brand will likely lose equity (or value) if associated with products or services that don’t make sense for that brand.

Here are some of the worst brand extensions of 2008 (as noted by Brandweek’s editor-in-chief, Todd Wasserman).

- Burger King Underwear
- Rolling Stones Ice Wine
- Sleeping Beauty pens for $1,200
- Playboy Energy Drink
- Kellogg’s Hip Hop Street Wear
- Another one he mentioned from before 2008 was Cheetos Lip Balm.

The only one I can kind of get on side with is the Playboy Energy Drink. Though it does seem a little too specific in focus (guys wanting energy for sex, or maybe out partying with the opposite sex), it still lines up a little bit with the Playboy ideology.

Todd also mentioned – for contrast – a brand extension that made a lot of sense. V8 Gourmet Soup recently hit the markets and is selling very well. I have to confess: I would never drink their juice (outside of a Caesar situation), but I would definitely try their soup because I assume it’s healthy and delicious. I make that assumption largely from what I’ve learned about their brand. That’s pretty good brand equity.