7 Keys to Marketing Genius: Line Extensions - No Splashing
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
An example of a line extension is V8 Splash. V8 aired a commercial where a person drinking the new line of product is shocked to discover there is no tomato-y aftertaste. After decades of advertising and millions of dollars trying to get consumers to recognize V8 as a tomato beverage, they change the rules. In my book, this is a classic example of the line extension trap, and what not to do.
Of course, there are times when it is a good move to expand a company by offering more products. A better strategy is to use co-branding (same company, different brand names). Coke has found success in this area with Sprite. Imagine if Coke had named its product Lemon Lime Coke. Sounds absurd, but think of the brands that have gone that direction. There is Pepsi Blue, which I still am not sure if it is berry-colored, or berry-flavored and I don’t really care to find out. The new Mountain Dew Code Red is another confusing moniker, why didn’t they just come up with a new name? But even a giant like Coke does not learn from its own success and follows with Lemon Coke. Each product needs its own image and word associated with it. If you feel you have a significant market share where you are and you need to expand into new markets, co-branding is the better route. Proctor and Gamble have built an empire on co-branded products.