We all know what brands are. But what are “megabrands”? A recent Brandweek article tackled this topic recently, and I think they did a masterful job of explaining what a megabrand is, and what it isn’t.
As the article, “What Makes a Megabrand,” points out, most people, if asked about what they consider to be megabrands “may think of Coke, Budweiser or Cheerios.” After all, they’re known world-wide, their sales are “mega” and they’re brand leaders, right?
Not so fast. While brands like Coke, Budweiser and Cheerios are mega to consumers, they really don’t fit the criteria to be considered mega by marketers. Reason? To be considered “megabrands”, brands must have considerable equity and they must be able to transcend one category and “drive growth and efficiencies” across related product categories.
Ah, so let’s think line extensions. The Brandweek article cites as megabrands:
- Crest. P&G leveraged the considerable equities of the Crest brand into many oral care categories besides toothpaste. Multiple kinds of toothpastes were added rather than new “flavors” as line extensions, as well as whitening kits and oral rinses.
- Dove. Unilever took basic Dove soap and turned it into a megabrand by adding products in numerous body and hair care categories.
- Pepperidge Farm. What used to be a bakery/cookie brand has successfully been extended into a snack and cracker brand, as well.
When you think about it, it not only sounds logical for brands to extend into multiple categories, it sounds fairly easy. . .but as we know, it doesn’t always work. We’ve got plenty of examples of failed efforts.
- Harley Davidson. Does anyone think it made any sense for the iconic motorcycle/freedom brand to be extended into perfumes? I didn’t think so either. Of course Harley gear and clothing is another matter. . .
- Coors. Spring water and the Coors brand? With so many brands synonymous with bottled water in the marketplace, would consumers think “Coors”? Apparently they didn’t.
- Bic. Disposable pens. Followed by disposable razors and lighters. So far, so good. Followed by pantyhose? Major disconnect and total failure.
This all raises some questions:
- What rules do you think should be followed for brands that want to launch line extensions?
- Do extensions have to be launched in related categories to work? Or can you think of instances where that hasn’t been necessary to be successful?
- Which brand extensions do you especially like and which ones don’t work at all? Why, in your opinion, is this the case?
- Do you have ideas that might extend one of your favorite brands into a megabrand? If so, which one, and which categories do you think it should extend itself into?
I’d love to hear from you.
Ted, how about Kirkland? I know it’s a Costco inhouse brand, but it is widely known to stand for quality goods and is extended across hundreds of private label products. Some wholesalers also buy the Kirkland brand and retail it on their shelves. Thoughts?
Paul,
I’m not sure that Kirkland could be classified a megabrand yet, even though it has extended into many, many categories. Interesting that the brand has been offered to other retailers, isn’t it? This reminds me of what Safeway is doing on the West coast, offering its private label O Organics brand and Eating Right brand to other retailers. If these brands get enough distribution and consumer buy-in, they may have the potential to become megabrands in my view. What is private label, after all? Not only products that cost less than the “national” brands. . .but significant rival brands to the nationals now. It will be interesting to see if selected retailers’ PL brands do become megabrands in future.
Thanks, Paul. Great question.
Not sure why, but retail apparel always seems to have some good “bad” examples”:
- Abercrombie failed with Ruehl (slightly older demo)
- Talbots failed with Talbot Mens and Talbots Kids
- Pacific Sunwear failed with “demo” (urban clothes) and One Thousand Steps (shoes)
Success in one demo or category doesn’t grant automatic permission to go to an adjacent, no matter how logical it might appear on paper!
You are so right, Kevin. Thanks for pointing this out along with some strong examples. Competition is very intense in every consumer product category, so any company that is thinking about leveraging its brand into other categories, had better research before they leap. Great insights, Kevin.
How about Crayola? They are a global company, have an instantly recognizable glyph (the two black lines on any crayon, real or fake, scream Crayola) AND they’ve moved the brand to reflect the bigger concept of “creativity”.
Interesting idea, Clive. After all: Crayola is a globally known brand; and they have been extending the line with new product intros to encompass “creativity” as you rightly pointed out. Personally, I think Crayola has great potential to evolve into a megabrand; just not sure they’re there yet. What do DF readers think about Clive’s suggestion? Disagreeing points of view are always welcome here.
Thanks, Clive, for getting us thinking about this one. . .
You asked a few questions there at the end. While I don’t know if there are any rules, I think the mistakes you pointed out lead to some common sense guidelines. The extension has to really make sense. But not to the product development or marketing teams, to the consumer. Coors water? The customer has to be able to make that connection.
Do you consider successful brands branching into clothing and apparel? There are many examples of this, but I’m not sure that this qualifies.
Hi Jamie,
Thanks for asking your own questions and for making this solid observation: “The customer has to be able to make the connection.” Exactly.
Brands branching into apparel? An iconic megabrand like Harley Davidson comes to mind. Many proud Harley owners like to wear their t-shirts, jackets and other gear to show the world they’re brand devotees. Ditto for kids when it comes to strong Disney or Nickelodeon properties. I’m sure there are also examples of brands that segued into apparel and fell flat doing it.
Can you think of examples of successes and failures to share with us, Jamie? I’d love to get your feedback. Thanks.
Terrific article, I would have thought Coca Cola was for sure a megabrand. I think some rules that apply to a megabrand is crossover ability. If you can cross demographics, generations, or countries you are on you way to becoming a megabrand. Additionally, I think that to launch a megabrand you most likely have to launch a similar campaign to a similar demographic as your best selling product, however, you do want consumers to be able to differentiate the new product from the old. They must be able to know that this is a new product that they must try and will benefit them, but know that it is different from the original to serve a purpose.
Thanks for the kind words and your insights, Promotional Products. Agreed: Coca Cola is a megabrand. Well put: “If you can cross demographics, generations, or countries you are on you way to becoming a megabrand.”
In this year’s Interbrand’s Top 100 Global Brands, Coca Cola continues to sit in the #1 position, as well. Known and consumed the world over, Coca Cola is iconic. Even though soft drink sales have been less than stellar, Coke’s latest product entry–Coke Zero–has been a winner. As you pointed out, “you do want consumers to be able to differentiate the new product from the old.” To that I would add, “and you don’t want to cannibalize sales of existing, viable products with the launch of new line items.”
Thanks for contributing meaningful content to my post, Promotional Products. I appreciate it.
Remember Ries & Ries “22 Immmutable Laws of Branding”? Rule 10: The Law of Extensions – The easiest way to destroy a brand is to put its name on everything. We may have moved beyond these 22 laws – but they raise a good point that you have to also consider what extensions do to your core brand. Sometimes it seems like a brand extension is an easy answer – and, as we all know, nothing’s that easy in marketing!