Brand extensions are one of the most tricky areas of brand strategy.
They can make or break your brand.
If done well, brand extensions have the potential to improve brand equity and strengthen consumer loyalty (think Virgin).
However, a poorly executed brand extension can lead to brand dilution and damage your brand’s promise.
Unfortunately, there are numerous notable cases of historical brand extension failures: from Colgate’s extension into ready meals, to Harley Davidson’s extension into aftershave and perfumes.
However, FMCG brand Marmite’s latest brand extension is shaping up to be one of this year’s success stories.
This week, the 150-year old heritage brand launched its boldest brand extension yet: Marmite Peanut Butter.
The brand boldly claims that the new product is exactly what the nation has been waiting for.
“The British public asked, and we listened”, says Marmite’s Brand Manager Camilla Williamson.
Indeed, the demand for nut butters in the UK is higher than ever – with no signs of slowing down.
By expanding into the popular nut butter market, Marmite is securing its place as market leader in the spread category – a clever and tactical move.
The iconic Marmite branding has been applied to the all-new product labelling – allowing instant brand recognition, whilst also mimicking the look of a classic peanut butter jar. And at £2.50 for a 225g jar, this exciting new spread is a similar price to the original Marmite.
Marmite states that 60% of its consumers would buy Marmite Peanut butter in addition to the original marmite spread, meaning the new extension won’t cannibalise the core product.
Clearly, the team behind the Marmite brand has conducted extensive market research prior to the extension and has developed a very well thought-through and clever way of growing their market share in the spread category.
Love it or hate it – the Marmite Peanut Butter is a great example of a well-executed brand extension strategy.
If you need any help with your branding or a brand extension strategy, contact CuCo today on 01202 911959 or email us at email@example.com – We’d love to help!