Crest is among many other brands who have fallen into the trap of brand extension. Power of brand is inversely proportional to its scope. As soon as a brand becomes successful, marketers tend to expand the brand in need of more sales. No doubt the brand expansion works to keep the counter clicking, but what happens to the brand in the long run? Does it keeps as strong as it was before it was expanded.
Once a market leader, Procter and Gamble’s Crest toothpaste lost its leadership to Colgate. With 38 SKUs only for Crest the toothpaste enjoyed 35% of the market share, when the number reached to more than 50 SKUs Crest slipped to 25% market share, weakening its self and giving a way to Colgate.
What Crest did in the toothpaste category, Chevrolet did with cars. Chevrolet was the leading selling brand in America. Soon the brand Chevrolet was put on to many car models, cheap, costly, small, big even truck. The brand became weak and the leader was replaced with Ford. Along with line extension marketers use various other methods to milk their brands and they are successful, but it only remains for short term In the long run brand expansion diminishes the brand power and weakens the brand image.
The answer to a healthy brand lives not in its extension but in narrowing.
Once a market leader, Procter and Gamble’s Crest toothpaste lost its leadership to Colgate. With 38 SKUs only for Crest the toothpaste enjoyed 35% of the market share, when the number reached to more than 50 SKUs Crest slipped to 25% market share, weakening its self and giving a way to Colgate.
What Crest did in the toothpaste category, Chevrolet did with cars. Chevrolet was the leading selling brand in America. Soon the brand Chevrolet was put on to many car models, cheap, costly, small, big even truck. The brand became weak and the leader was replaced with Ford. Along with line extension marketers use various other methods to milk their brands and they are successful, but it only remains for short term In the long run brand expansion diminishes the brand power and weakens the brand image.
The answer to a healthy brand lives not in its extension but in narrowing.
