Why should brands blur into new categories?

Why should brands blur into new categories?

How to expand your brand footprint successfully

Brands are diversifying to maximise on growth in other categories. Done well, it opens up new streams of opportunities. Done badly, brand equity pays the price.

Jack Daniels Tennessee Honey liquor extended the franchise outside whiskey drinkers leading to 32% growth and 9% increase in global volume in three years.

Pringles used its fun, lively and creative brand identity and trusted core brand to blur into sweet flavours.

Why should brands blur into new categories?

Demographics are blurring which means rules can be broken. There are more gamers aged over 44 than under 18, for example and in China, 30% of Maseratis are bought by females compared with just 7% back in 2005.

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Category blurring

Source: Internet Advertising Bureau, September 2014

But ultimately it is about the brand and the brand’s ability to go into new categories or into new motivations and occasions.

As Bud shows the most successful stretches develop a journey…

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What is it you should be doing?

Given the fast-paced changes in consumer segments there is a lot of uncovered ground. For brands to maximise on the potential in new categories we recommend five steps:

  1. Identify relevant benchmarks of successful brands, inside and outside your category
  2. Select blurring guidelines that apply to your category and brand
  3. Use the two above to evaluate your brand’s potential to blur
  4. Use market analysis to identify the blur opportunity
  5. Prepare a feasible roadmap with small successful intermediate blurring steps