The  CONNECTOR   

A MONTHLY PUBLICATION FOR DISADVANTAGED BUSINESS ENTERPRISES
VOL. XXXI, No. 1, January 2012

WHATEVER IT TAKES: The Big Business of Brand Extensions

Row, row, row your boat gently down the stream isn’t always an easy directive to follow when you’re working to extend a brand. The ups, downs, twists and turns of broadening a company’s appeal can capsize its efforts if they aren’t anchored to a nonnegotiable core.

Using extensions as marketing tools has long boosted the bottom line of businesses large and small. Those who understand the need to tether product extension to the core values that generated their initial success have succeeded best at this type of expansion. Committing to do whatever it takes to safeguard the keys to their company’s distinctiveness has helped these “expansionists” weather waves of nagging doubt and swells of challenge.

Well aware that venturing beyond their standard sales options carries considerable risks, they carefully weigh necessary investments and potential consequences. Before making any moves to associate their brand with new territory, one of the first things they consider is “fit.” No matter how much money they stand to gain by branching out in a different direction, savvy executives rarely align themselves with projects that might nudge their corporate image just the slightest bit off course. For a product line to be eligible for serious add-on consideration, its complement value must be readily apparent. Therefore, it’s unlikely that even the most daring entrepreneurs will embrace a venture that seems totally unrelated to their brand. If stretching to make a connection seems illogical, the odds are they won’t risk blemishing their reputation.   

“Stretching the Brand Truth” (Marketing - 7/18/07) warns against the hazards of moving into areas where a brand has no expertise or credibility. Consumers prize these assets. If one or the other isn’t evident in an extension endeavor, even an enterprise’s most loyal customers tend to balk at being “goaded into a purchase.” Seemingly forced associations raise often haunting questions. Has the company’s principal product line significantly lost market share? Is it desperate for sales? Does it underestimate consumer intelligence? Is greed behind it all?

Big Picture focus can quell such suspicions. With a well-charted positioning course in hand, each brand extension launch can be guided to honor a central vision. Whether entering a new product class or debuting in a new arena, a company directed by a single image generally safeguards its reputation without having to engage in heroics or damage control. Long before any questionable prospect arises, principals are wedded to the commitment to stay on-script. Having all spin-off opportunities mesh with  one overarching intention provides much-needed grounding. 

Whether introducing a new item within a product line, such as one of a different color, size or shape, or extending an existing brand name into other categories, three additional factors greatly affect success. Familiarity, perceived quality and attitude. “The Effect of Brand Extensions on Product Brand Image” (The Journal of Product and Brand Management - 19. 3 [2010]) states, “any kind of an inappropriate extension may create serious damage to the parent brand and it may be hard for the company to overcome this situation.” The primary reason is that when consumers are acquainted with a certain level of performance or service, their expectations drive reactions to changes in a company’s imprint.

Because consumer memory is often unforgiving, being sure to make a clear differentiation between current offerings and offshoots is essential. In the event that a rollout is fraught with bugs, never should any extended product suggest overall company frailty. In all related marketing pieces, the parent brand should be seen as sound. Not only should advertising depict its strength, but also taking measures to avoid any actual appearance of a drop in quality should be a priority. Whatever enabled a business to snag noticeable market share initially has to remain in tact—if it doesn’t improve, that is.  The Journal article stresses that two different bases that consumers may use to evaluate an extension’s goodness of fit with the brand category are product feature similarity and brand concept consistency. Consequently, highlighting both parallels and departures is vital.     

In markets with a number of major competitors, developing a brand across a broad range of platforms can pay the sort of dividends that bring “game-changing” results. One entrepreneur featured in “Stretching the Brand Truth” points out the tremendous value of taking your image wherever your customers are. Many times, deciding what areas to tap into depends upon natural and logical associations alike. So don’t limit your extension options to the obvious. Remember, loyal customers respond to what built your reputation: your capacity to meet a specific need in a specific way. Thus, sometimes, rather than being tied to a product or service, your most appreciated value might be found in a feeling—of security, uniqueness, convenience, or even hope. For example, if you become known for producing a certain high-quality “portable” product, why not work to distinguish yourself as “The Portability Expert”? As long as your extension choices capture that essence, consumers are likely to trust that you will deliver the same in a completely different vein associated with this concept. Your company’s proven record attests that you have whatever it takes to supply the same in any sphere.

And that’s certainly big in business.

• MARTA Connector Archived Issues 
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• Announcements
• MARTA Information 

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MARTA Business Opportunities 

Click here for current bid opportunities

The procurement and contract opportunities noted below can be found on the Internet at www.itsmarta.com. Because dates for noted events are subject to change, you should contact MARTA's Contracts & Procurement and Materials Division at (404) 848-4193 for verification.

Prospective vendors are urged to visit MARTA s web site for weekly updates.

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Announcements 

DeKalb Chamber's Small Business Capacity Building Series begins January, 2012.  For more information on this program, contact the DeKalb Chamber of Commerce at 404.378.8000 ext. 224 or send an e-mail to jleonard@dekalbchamber.org

February 9, 2012 - 8:30 a.m. to 3:00 p.m. - Georgia Summit of African American Business Organizations (GSAABO) African American Business Enterprise Day at the Sloppy Floyd Building, West Tower, 200 Piedmont Road, S. E.; Atlanta, GA  30303. For more information, please call 912.443.1996 or e-mail info@danielscommunicationsgroup.com

February 10, 2012 - 9:00 a.m. to 3:00 p.m. - Fulton County's Vendor Opportunity Day; Fulton County Government Center Atrium; 141 Pryor Street, S. W.; Atlanta, GA 30303.  For more information, please call 404.612.5800 or visit the website: www.fultoncountyga.gov, click "Bid Opportunities" then click "Upcoming Events."

MARTA’s Office of Diversity & Equal Opportunity invites small business owners to visit our Business Resource Center.  For more information or to schedule an appointment, please call Ms. Darlene Williams at 404.848.4656.

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MARTA Information 

All public events (i.e., bid openings and conferences) are held at the MARTA Headquarters Building, 2424 Piedmont Road, NE, Atlanta, Georgia 30324, unless otherwise indicated.

Most solicitations may be downloaded free of charge and are available via the web at www.itsmarta.com. Solicitations with drawings may be ordered for the above noted contracts via telephone by contacting MARTA s Documentation Control Branch at (404) 848-5580 or other sources as indicated. 

The MARTA Connector is published by the Metropolitan Atlanta Rapid Transit Authority, Office of Diversity and Equal Opportunity, 2424 Piedmont Rd., NE, Atlanta, Georgia 30324. All comments and recommendations are welcome.

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