Brand leveraging strategy
Why it is important?Brand leveraging is an important form of new product introduction because it provides consumers with a sense of familiarity by carrying positive brand characteristics and attitudes into a new product category.A brand leveraging strategy uses the power of an existing brand name to support a company’s entry into a new, but related, product category.
Will Brand Leveraging Work for you?
1.Does the new product fit into the established product family?
2.Does the brand have attributes or features that easily and effectively carry into new categories?
Is the brand name strengthened or diluted by representing two (or more) differentiated products?
3.Does your company have facilities necessary to manufacture and distribute a new and differentiated product?
4.Will sales of the new product cover the cost of product development and marketing?
5.A brand leveraging strategy can be extremely successful and profitable if it is correctly implemented and provides new products with the right image.
Frito Lay™ name is extended from potato chips into other types of snack foods and dips. An introduction of Frito Lay™ lemonade did not succeed because the fruity, sweet drink had little connection to other Frito Lay™ products.
Other examples that did not work in the consumer market include
Ben-Gay™ aspirin,
Pond’s Toothpaste
However, M&M™ ice cream, Reese’s™ peanut butter, and Minute Maid™ orange soda experienced success because the brands held direct and logical connections to their new categories.
