Developing brand extension ideas requires both art and science. Creativity is the key to BIG ideas. Market research is only an input to the process of developing new brand extension ideas because consumers have significant limitations of what they can imagine. Company management is also limited in their input because they perceive the brand based on the category or business they are in, not usually seeing the wider potential to redefine the business.
Many people think of brand extension as a market research project. But in fact, it is a major strategic decision to enter a new category for the company. As such, it requires careful analysis and planning in order to have a new large successful business.
To identify great brand extension ideas, market research is only one input. That is because of the limitations of research and the necessary brand and category analysis.
Consumers cannot tell us the best brand extension categories or ideas. Identifying these requires inference from research input and creativity. When focus group participants are asked directly to suggest some brand extension ideas, nonsense usually occurs. Linear thinking just leads to obvious or silly suggestions.
Consumers can tell us
Examples such as Ugg bedding and household items, Claritin pillows and comforters, Disney English language teaching centers in China and Clorox Disinfecting Wipes would never be suggested in focus groups. There are many other examples of brand extension ideas that show how creative thinking led to businesses that would not be suggested by consumers yet are logical once seen. Likewise, senior management rarely sees these opportunities because they view their business from the standpoint of the category they are in; not exploring what categories they could be in based on what their brand name owns in the consumers’ minds.
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