EUROPEAN INSTITUTE FOR BRAND MANAGEMENT
Model: Brand Stretch
Type of model: Brand model (process model)
Author(s): David Taylor
Domain: Brand Stretching
Figure 1: David Taylor’s Brand Stretch Model
Brand extensions sometimes work out, but they also fail in many cases. In order
to help brand managers tip the scales towards the success side, David Taylor
has devised a roadmap. In his Brand Stretch Model, David Taylor formulates six
steps to take to realize successful extensions: (1) strengthening the brand, (2)
formulating a brand vision, (3) coming up with possible extensions, (4) selecting
extended products, (5) shaping extended products and (6) formulating the
brand proposition for advertising.
We will further outline the six steps in the following:
1. Strengthening the brand: a strong brand is an important prerequisite for
successful extensions. An extension will only have a chance of succeeding
when the mother brand is strong, and has a clear meaning in the market. A
weak brand does not lend itself for image transfer. When a brand has
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insufficient added value for consumers it is advisable to – prior to launching
extended products - strengthen the core of the main brand. A strong and
recognizable brand instils a kind of credibility and trust in consumers, which
can be used as a point of departure. Taylor states that it is key to not be too
quick to introduce extensions that are too far removed from the brand
essence in terms of product/ meaning. Business wise, the extensions may
be lucrative, but they can also dilute the meaning of the main brand. A better
way of expanding is by exploring the boundaries step by step. That will limit
confusion in consumers, and make sure the brand stays credible. An
example is the Giant mountain bike brand, which has been gradually
introducing other kinds of bikes under the same name. Giant can safely do
that, as it has built a strong brand core over the years.
2. Formulating a brand vision: only when the brand has a strong core, a clear/
ambitious brand vision can be formulated. This vision should create clarity
on the direction the company wants to take with the brand, and indicates the
role the brand has to play for consumers. This vision can be ambitious; at a
later stage in this roadmap decisions will be of a more rational nature. The
lack of a clear vision can lead to a proliferation of new, lucrative extensions,
each with their own sound and message. A clear vision helps build a
univocal, strong and hence recognizable brand. Extensions will, as a result,
not be used as a way of realizing short-term sales increases.
3. Coming up with possible extensions (idea generation): a clear and inspiring
brand vision can be used as a basis for the generation of structured ideas
for extensions. These extensions should, however, be geared towards
further strengthening the brand core. Taylor warns of the so-called fairytale
world of innovation, meaning that ideas for extensions should not look too
far into the future and be too grand. The first aim should, in Taylor’s eyes, be
to reinforce the existing brand core, and stretch the brand from there.
Consumer platforms could, at this stage, be used to test new ideas. Taylor
states that converting certain consumer insights into potential (concrete)
products is an extremely effective way of designing realistic extensions.
Extensions that are too far removed from the brand core will, according to
Taylor, not be accepted by the market right away.
4. The actual selection of extended products: after extension ideas have been
generated, the decision-making process starts. Two criteria play a key role
here: one the hand it is about choosing the ideas that are good for business,
and on the other to select those that match the formulated brand vision. In
order to make the right decisions, a company will have to be able to adopt a
critical attitude towards itself. It requires, for example, the ability to
adequately identify its own competencies. These have to be mapped,
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because otherwise a company will make promises it will not be able to keep.
When choosing the extended products to go for, it is also important to bear
expected revenue in mind. Taylor claims that experience has shown that –
when a clear focus is lacking – chances are the wrong choices will be made,
and that companies will find themselves saddled with projects that bring
value reduction rather than value creation.
5. Developing extended products: when actually developing extended
products, there is still a lot that can go wrong. Poor execution of the new
product development and/or the marketing process can not only cause the
extended product to fail, but also have a negative impact on the brand core.
The most commonly named cause of extension failure is that the product
does not deliver on its promise. Excellent execution (the extended product is
better than expected), on the other hand, can have a greater positive impact
than the company could ever have estimated beforehand. A qualitatively
strong extended product can trigger 'word-of-mouth' advertising and/ or free
publicity, which can lead to a huge boost in sales of the brand (including of
the parent product). In closing, Taylor states that a brand with exceptionally
high product quality can, in certain cases, also enable a brand to stretch
further than the company initially thought possible. The reason behind that is
that consumers are always willing to buy products that are of superior
quality, even if the fit with the original brand product is not clear.
6. Formulating the brand proposition for advertising: when extending a brand,
there is a chance the brand image consumers have will dilute. Sprawling
brands can at one point give rise to the need for a management tool to help
keep things under control. After all, the basis has to be a brand vision, with
all extensions propagating the same values. The introduction of brand
architecture that displays clear logical links between the different
propositions can help ensure these problems stay manageable. This brand
architecture has to lead to a situation where consumers have a clear idea of
what the brand represents, and it has to enable the brand manager to stay
on top of his brands.
Reference(s)
Taylor, D. (2004), Brandstretch (why 1 in 2 extensions fail, and how to beat the
odds). John Wiley & Sons, Chichester, U.K. *
* : available in the EURIB library.
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© 2009 EURIB (www.eurib.org)
