Brand Extension or Brand Pretension

Brand Extension or Brand Pretension
Uncovering the difference

By
Kirsty Fuller, Director, Flamingo

James Parsons, Director, Flamingo
This paper explores the limitations and value of qualitative research

in a brand extension programme. It calls for the qualitative
research industry to move away from the role of consumer
mouthpiece and to engage fully in the strategic thinking
underpinning the extension initiative. The paper goes on to present
a model for exploring brand extension opportunities, in which
strategic thinking and consumer understanding are combined. The
application of the model is illustrated throughout with examples
drawn from Levis, Sony, PlayStation and Lynx.
INTRODUCTION
THE MOTIVATION FOR WRITING THE PAPER
THE INCREASING SALIENCE OF BRAND EXTENSION STRATEGIES
Understanding brand elasticity and therefore brand extension opportunities has become
a hot topic over recent years as the cost of creating and sustaining brands has increased
and companies have been looking more and more to their existing brand portfolio to
generate incremental volume. Moreover in a field such as technology the parameters of
the sector are changing at such a rate that a degree of brand elasticity is not a luxury but
a necessity for survival. Understanding brand elasticity and brand extension is
therefore going to be an important aspect of brand management for years to come;
reason enough to give the subject some serious thought.
Over the past decade there are probably more brand extension failures than successes.
In many instances short term gain took precedence over long term brand health. Next
years volume targets became the priority and, with no brand guardian, the brands
equity was eroded and its future compromised. There have been some notable
exceptions such as Unilevers toiletry brand Dove whose extension from soap into
categories such as deodorant has been managed with discipline and with vision. But
Dove is in the minority. Jon Morley, formerly of Unilever, sums up the situation as
follows:
There are more examples of it (brand extensions) being done
badly than well for three reasons: (1) Rarely are brand extension offerings genuinely
competitive within the category (2)Rarely are the resources there to properly support
the new product and (3) Rarely is the impact on brand equity given serious thought.
Surely then there is a real opportunity for the qualitative research world to carve out an
important role for itself in the business of brand extension. There undoubtedly is but
not without a serious reassessment of how the qualitative researchers skills are
harnessed and applied. A competitor is already staking claim to the territory.
COMPETITION FROM THE WORLD OF CONSULTANCY
Brand extension research is an area in which the research world is facing stiff
competition from management and strategic consultancies. These consultancies are, we
would argue, often weak in understanding consumers and the dynamics of brand
relationships but strong in marketing theory and brand strategy. Experts in qualitative
research are strong in consumer understanding but have often displayed a weakness in
coherent strategic thinking. This thinking has not been asked or expected of the
qualitative researcher. At the same time little has been done to buck the trend. Instead
there has been a rather passive acceptance of the lowly status of consumer
mouthpiece, culminating in simplistic research design and nave recommendations.

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Whilst the industry has resigned itself to a drop in status it has simultaneously
promoted the mainstream consumer to the position of marketing guru. The result has
been extension research in which the consumer is asked directly whether a brand should
or should not enter a particular category, should or should not extend its range, should
or should not abandon its original product roots; or worse still asking the consumer
where the opportunities for a brand lie. If we as an industry continue down this route
we can wave goodbye to the brand extension briefs. The management consultants will
snap them up with relish.
RISING TO THE COMPETITIVE CHALLENGE
At Flamingo we have found ourselves increasingly involved in extension projects
across a wide range of brands. This involvement has led us to consider how best to
harness consumer understanding within a strategic framework whilst encouraging
creativity and innovation. It has led us to identify the dual role we must fulfil of new
category explorer and brand guardian. It has led us to think about the importance of
brand vision as well as the nitty gritty of a category opportunity.
This paper presents a conceptual model for exploring brand extension opportunities
bringing together strategic thinking and consumer understanding. It calls for qualitative
researchers to use their skills in strategic thinking throughout the process rather than
being merely the consumer mouthpiece. Thus a key theme in this paper is not just
brand extension but also an extension of the very involvement and contribution of the
qualitative researcher. The industry must change the compartmentalised thinking of
clients who introduce the qualitative researcher at clearly defined stages in the brand
development process and confine the thinking and learning to that stage only. We must
demonstrate our credentials at all stages of the process. We must be thinkers rather
than just interviewers or moderators.
The first part of the paper is devoted to exploring the value and the limitations of
consumer research in a brand extension programme. This is the backdrop to the
strategic framework or Brand Extension Model described in the section which
follows. The second part of the paper is an explanation of the model itself and the
theory behind it. Where appropriate the application of the model is illustrated with
brand examples.
PART 1
THE VALUE AND LIMITATIONS OF THE CONSUMER
RESPONSE
This section begins with the limitations of consumer research. This helps place the
value in the appropriate context.

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THE LIMITATIONS OF CONSUMER RESEARCH
Mention was made above of the qualitative research industrys tendency to deliver
simplistic research design and nave recommendations. There is one main reason for
this. In many studies the approach is built around the concept of consumer
permission; and the way in which that permission is sought is via direct questioning.
In this paper we argue strongly against this way of thinking. There are a number of
reasons for this.
A focus on functional credentials
Consumers tend to look at a brands expertise along practical lines rather than
considering its personality values and the emotional territory which it occupies. Put
very simply there is a tendency to think in terms of what a brand is good at making
and granting or refusing permission accordingly. As will be illustrated in Part 2, it is
increasingly rare that relevant product expertise is enough to sustain a successful
extension. In the majority of brand extension projects it is the emotional values which
will determine the success or failure of the initiative. Making those emotional values
relevant and powerful in a different category requires some serious thought on the part
of the brand team. It is not consumers who should be asked to do that work on their
behalf. Why should they bother? Consequently if the extension is not an obviously
logical one it is more likely to be criticised than endorsed in conventional consumer
research.
The search for a precedent
A second drawback of the consumer permission approach is the inherently
conservative nature of the majority of consumers. Each brand extension idea is
considered within the framework of what has gone before. In other words there is a
search for a precedent. Expectations and rules about what is and what is not possible
are already in place.
So, for example, fashion and clothing brands are expected to launch a fragrance
because so many brands before them have done so, from high end designers (Calvin
Klein) to high street retailers (GAP). If permission is simply about consumers telling
you what other brands have already done then there is certainly a cheaper and quicker
way to obtain to arrive at the same information.
The anything goes response
The anything goes response is an extremely frustrating feature of extension research.
It can occur for two quite different reasons. The first of these is down to the weakness
of the current consumer/brand relationship. If consumers do not have a strong
relationship with a brand, there is a tendency to be blas about its future direction. It is
then difficult to obtain a meaningful response to a brand extension idea. Yeah I
suppose they could do that is not the basis for sound strategic decision making.
Alternatively the reason for an anything goes response can be down to the values of
the brand in question. A brand whose whole ethos is built around change and challenge
to the accepted order will tend to obtain consumer permission to do almost anything.

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In this instance the real issue is to do with longer term brand vision rather than isolated
brand extension initiatives. Thus consumer permission should be treated with caution.
Ignoring the category dynamics
This is perhaps the most serious issue ignored in a permission-led approach. A brand
might well be allowed to enter a new arena but the crucial issue is whether it has
anything to offer when it gets there. This means understanding fully the dynamics of
the destination category and the players within it (here consumer research has a vital
role to play) and then situating the extension offering in that context (this can often be
more about analysis than consumer questioning.)
Acknowledging the limitations of consumer research is not in any way to deny its
valuable role in the extension process. It is about recognising where that role lies.
THE VALUE OF CONSUMER RESEARCH
There are three main areas in which consumer (although not exclusively consumer)
research has a major role to play. The areas are:
1.
2.
3.
Brand understanding
Destination category understanding
Refinement of extension offerings
Brand understanding
An important start point for any brand extension project is a detailed understanding of
the brand in question. This is fundamentally about consumer associations and
relationships with the brand, together with the nature of their expectations for the
future. Here qualitative research is in its element.
Destination category understanding
Exploring the dynamics of the category into which a brand is extending is crucial. This
means identifying the functional and emotional pre-requisites of the category and the
extent to which these are owned and defined by the key players. Consumer research
may well sit alongside or follow a stage of semiotic analysis.
Refinement of brand extension offerings
At the point when a brand extension proposal can be presented in a relatively finished
state and the positioning is well developed, consumers can aid in refinement of the
execution. It is important to note that here the extension is being presented not as
theoretical but real. In other words this is about exploring the appeal of a fairly
finished product offering rather than posing a question along the lines of what if Brand
X were to make a shampoo?. Thus consumers are responding to the appeal of an
offering within the appropriate destination category.

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RESEARCH DESIGN AND TECHNIQUES
A range of sample designs and approaches might be used at the stages outlined above
and it is not the subject of this paper to review them in detail. Suffice to say that we
would almost certainly propose a strong leading edge bias (see our previous paper
Choose Change on this subject) and would also be involving expert interviews, client
brainstormings and client consumer workshops.
SUMMARY OF PART 1
In summary then, brand extension is not a problem which can simply be handed over to
consumers. Brand extension programmes are about fitting together different pieces of a
jig-saw to arrive at a strategic overview within which the brand extension(s) is situated.
It is wrong to expect consumers to fit these pieces together for us. It is nave to expect
consumers to have a vision of the brands future. It is misguided to expect consumers
to drive the direction of brands.
Consumers should drive our understanding but not our strategy. This principle
underpins the Brand Extension Model we have developed.
PART 2
THE BRAND EXTENSION MODEL
In order to be fully involved in the brand extension process we must be in at the start.
This poses a major challenge for it is at the start that the competition from brand and
management consultancies is toughest. Everyone wants to be in there. As Paul Gander
wrote in an article in Marketing Week in December 2000:
Those involved in the first stage of this process are likely to have the strongest chance
of maintaining influence throughout and will try to claim at least some of the glory
for the end result. So there is understandably intense competition to colonise this
ground at the very start of brand development: the mapping of consumer attitudes and
behaviour
We would agree with this point of view although in the specific circumstances of brand
extension the ground at the very start of the process is not the mapping of consumer
attitudes and behaviour. Indeed the focus is not on the consumer.
FORMULATING THE BRAND VISION AND THE BRAND EXTENSION
STRATEGY
The focus at the start of a brand extension project is on the client and the clarity of his
thinking. There are three questions which require careful consideration from the outset:
1.
2.
3.
What is the motivation for the brand extension initiative?

What is the overall brand vision within which the brand extension sits?
What strategy or strategies are being considered to bring the extension to
fruition?
Fuller and Parsons
At the start of a brand extension initiative it may be that the answers to questions 2 and
3 are as yet unknown. In other words that thinking is still to be done; those decisions
are still to be made. If this is the case then full account of this fact should be taken.
Launching into a consumer investigation of brand extension opportunities without
having established the brand vision and extension strategy is unlikely to be genuinely
useful. Indeed the feedback could be seriously misleading.
What should be clear, however, is the motivation for extending.
THE MOTIVATION FOR THE BRAND EXTENSION
Client motivations can be broadly divided into two categories:
Growth motivation
Survival motivation
Growth motivation
The growth motivation can take two forms, one potentially more risky than the other.
The first motivation can be attributed to a businessmans brain. For example a category
has been identified which is enjoying dramatic growth (or is extremely profitable or is
just plain big) and the manager of Brand X wants a slice of the action. In this
instance little thought has as yet has been given to issues such as brand credibility and
fit with category or more importantly the potential impact on brand equity.
An alternative way in which a growth motivation can manifest itself is through the filter
of the marketers brain. A manager of Brand X can see how his brand could compete
successfully in another category. This is a much more comforting state of affairs. The
initiative is brand led rather than volume led and there is a sense of working with the
brands equity rather than relying solely on current size and level of awareness.
Survival motivation
When the motivation for brand extension is survival the challenge takes a quite
different shape. The focus is not protecting the current business but shifting focus into
a new category or arena. This survival motivation might arise when the brands
business is concentrated in a declining and increasingly peripheral category. In the past
we have worked on the brand TDK. A leader in the cassette tape market, a format
largely superceded, it was imperative that it successfully established its heartland
elsewhere. This also required a redefining of its brand personality and values to ensure
that it was resonating with the new generation of music lovers.
Alternatively the need to extend in order to survive may be because the home category
is simply too niche and, in order to achieve critical mass, the brand must extend into
new fields.

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No doubt there are many other permutations. It is certainly the case that in the field of
technology boundaries between categories are blurring. Thus arguably a game console
brand like PlayStation can no longer restrict its attention to other console brands but
must compete against other gateways into a virtual world. In such a fast changing
environment you cant count on your product heartland remaining the same for a
prolonged period of time. Extending your brand remit is an on-going part of managing
the brand.
UNDERSTANDING EXTENSION MOTIVATIONS: WHAT DOES IT BRING?
So what real benefit does this understanding of motivation bring? It is, we believe,
crucial in understanding which extension strategy or strategies should be taken forward
into research as well as understanding the extent to which there is a pre-existing vision
of the total brand world within which the extension will sit. In other words it directly
influences the answers to the second and third questions defined above. The motivation
will influence the priority given to different aspects of the strategy going forward. For
example, for a brand like Levis, with enormous strength and equity in one category,
safeguarding its status in denim is of paramount importance. If, on the other hand you
are TDK, the focus is on where you are going more than where you have come from.
BRAND VISION AND EXTENSION STRATEGIES
Brand extension ideas should never be explored, certainly in consumer or even expert
research, without a thorough understanding of the direction in which the brand as a
whole is heading and of how the extension is intended to interact and contribute to the
brand core. Without this vision and context, the brand management team is shirking its
responsibility. It is asking the consumer to tell them what the brand should stand for. It
is asking the consumer to be visionary. It is, as indicated earlier, asking the consumer
to give the brand permission to move forward whereas what should be happening is
that we proactively help clients to develop their vision and their extension strategies.
In order to develop this brand vision there is a need to understand fully the brand in
question and in particular the nature and extent of its elasticity. Armed with this
understanding the brand team will be well placed to move forward to the brand
extension exploration itself. As David Howard put it in an article for Admap in March
1997:
It is only by gaining a better understanding of the brands potential to stretch that
those of us responsible for brand development and management will be able to
distinguish genuine opportunity from genuine opportunism
Brand extension or brand pretension? Brand elasticity is the key.
BRAND ELASTICITY
Brand elasticity describes the extent to which a brand is able to operate credibly in new
categories or is able to accommodate new product offerings whilst retaining a coherent
brand identity. We have identified three salient themes pertinent to this issue, themes

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which should be investigated fully in order to come to a view on the nature and extent
of a brands elasticity. The three themes are:
Brand history
Product world
Brand world
Brand history
A contributory factor to elasticity is a brands historical development. Of particular
importance is the length of time that a brand has been associated with one product or
category prior to diversification. The term associated with is highly significant here.
This is not just about the reality of a brands portfolio, it is about perception of the
brands portfolio, likely to be heavily influenced by the nature of a brands
communication strategy over the years. The focus of a brands communication and
product offering informs consumer understanding of the philosophy and expertise of
the brand. It influences the extent to which a brands credibility is affected by visible
extension initiatives.
An excellent example of a brand where history has played an important role in limiting
elasticity is Levis, a brand we have been involved with on both sides of the Atlantic for
many years.
In Europe, until the launch of Levis Engineered Jeans (LEJ) last year, Levis have
focused the majority of their communication efforts on extolling the virtues of the 501,
the definitive and original jean. The reality is, of course, that an extensive range of
jeans styles and cuts were available. However the 501 advertising was the brand voice.
Levis cared about one product. It held originality and history close to its heart. It
behaved like a mono product brand. The result of this single-mindedness was of course
an incredibly successful iconic brand. But iconic brands with iconic products do not
lend themselves readily to future brand extension. Andy Farr and Graham Page, in a
recent paper based on a large scale quantitative study entitled Do you have an elastic
brand?, cite Coca Cola as one of the most inelastic brands they investigated another
example of the effect of a mono-product history.
Interestingly this learning confounds the view that a brands strength in one category is
permission enough to extend. Again Farr and Page:
Brand strength does have a role to play in setting expectations about new offerings.
However, it is clear that brands which dominate, or which are closely associated with
their home category will find it more difficult to stretch to new territory.
Returning to our Levis example and crossing the Atlantic we can illustrate further how
brand history impacts on elasticity. For although we would by no means describe the
brand in the States as elastic, we would suggest that it is more elastic than in Europe.
Its communication history and to some extent the reality of its portfolio (although we

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would argue that here it is the communication which is the crucial factor) have
embraced a broader product base. The focus has been less on one product over a
prolonged period of time. For example there has been advertising for Silver Tab
(baggier, more specifically youth oriented styles) and a campaign directed at women
with a Levis for Women range. The result is a brand less wedded to one product and
which, at least within denim, has credentials in a level of diversity.
Incidentally Japan lies somewhere between Europe and the States on the elasticity
scale. There, consumers have perceived a focus on heritage and an aesthetic of the past
limiting but less so than the one product focus of Europe.
Just a parting note before we leave the Levis example. As Levis Engineered Jeans
grow in stature and importance the brand is gaining a certain level of elasticity.
Engineered goes beyond one product to a range idea.
Product World and Brand World
But understanding a brands history is only one input into the brand elasticity equation.
The other two we have named Product World and Brand World which together
represent the brand equity. It is helpful to look at this visually.
Figure 1.
Emotional
values
Functional values
PRODUCT
WORLD
PERSONALITY
PRODUCT/CATEGORY
SPECIFIC VALUES
Product detail/style
BRAND
WORLD
Status
On the left hand side are the values derived directly from the product or products with
which the brand is associated. These tend to be more functional in nature although they
can encompass such characteristics as style and design and can feed higher order values
such as innovation.

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On the right hand side are the values which together shape the brand personality and
therefore emotional territory or world which the brand occupies. Of course looking at a
brand in this way is nothing new. It is how we take this perspective forward in brand
extension work which is where the interest lies.
There has been much debate in the marketing press over whether a brand personalityled route is the only reliable brand extension route to be followed. In an article in
Brand Strategy in August last year a strategy consultant, David James, was quoted as
saying:
The key issues in stretching a brand is looking at its core personality and seeing
where it is appropriate to go.
And Giles Lury, also a brand consultant, wrote in another Brand Strategy article:
Perhaps the most discussed approach is core personality led. Indeed last months
piece in brand strategy seemed to suggest it was the only proper way to brand extend. I
fundamentally disagree, there are many different routes along which you can extend a
brand.
Lury then goes on in his article to quote Mars move into ice-creams and Hula Hoops
move into frozen potato products as examples of a more functionally-based approach.
Our feeling would tend more towards that of David James but with a qualification. In
many instances it is from a brands functional or product values that it gains
permission to enter a new category. In other words it is a first fundamental hurdle to
overcome. However it is the minority of instances that the product world provides
differentiation within a new category; and in mature, crowded markets a permission
to enter is simply not sufficient. Thus a strong and compelling brand world becomes a
necessity for truly successful brand extension. Farr and Page again:
This seems similar to the process of screening a job applicant. Technical ability is a
prerequisite (and weakness here would presumably mean that the candidate wouldnt
even get an interview), but personality, and the match between the companys culture
and individuals values are also important in determining who is likely to be successful
in a given role, and therefore who gets the job.
So prior to engaging in a brand extension exploration it is important to draw up the
brands product and brand worlds and to consider the relative salience of the two
components and the extent to which that balance fits with the category being considered
as an opportunity. Brands vary enormously in the relative contribution to the brand
whole of these constituent parts. Some examples are given below:

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Figure 2.
LEVIS
501
Tight fitting
Unchanging
Out of fashion
PRODUCT
WORLD
Denim (jeans)
Quality
Well-made
durable
Predictable
Conservative
Masculine
BRAND
WORLD
Levis (1 year ago) had a relatively weak brand world. Product values derived from
denim and the 501 dominated the product world. Levis was in a weak position to
extend.

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Figure 3
LYNX
Quality
Male fantasy
PRODUCT
WORLD
Products for
men
Seduction
Fragrance
BRAND
WORLD
Masculinity
Lynx in the UK has a very strong and salient brand world. Its product values have
three components : mass market fragrance heritage, expertise in products for men and
quality at an accessible price. Initial brand extension initiatives focused on the
fragrance heritage. The brand team used to talk of Lynx as a fragrance brand. True,
within its core category of deodorant it is differentiated from the competition via its
emphasis on fragrance. But trying to take those fragrance credentials into other
fragrance-led categories has proved difficult. In male fragrance, for example, Lynx is
an also ran in a category dominated by fragrance experts.
More recently the Lynx team has focused on the emotional territory of seduction and
the unique insight-driven relationship it has forged with young men. Thus, its recent
entries into the shaving category (with razors and shaving preparations) and into the
male haircare category, are all about bringing seduction into categories for which such
a positioning has to date been an alien concept. Sure the entries are supported by high
quality products at parity with the major competitors, but the extensions will live or die
by the power of the brand world.

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Figure 4
SONY
Sets the standard
PRODUCT
WORLD
Innovation
Stylishnesss
Heritage
BRAND
WORLD
In touch
with
youth
SONY is a fascinating example of a brand whose brand world is almost totally defined
by the products it produces. It is interesting that in research consumers struggle to
personify the brand. The personality traits, to the extent that they exist, are derived
from products. Stylishness, innovation, modernity, youthfulness are attributed to the
brand because its product track record has delivered them. And with innovation on its
side and the ability to deliver target relevant products (Walkman, Discman etc.) SONY
has credibility across the technology spectrum. SONY is able to shape its values via
product differentiation. Very few brands have this advantage.
Understanding this product world and brand world balance and the relative importance
of each is a vital input into defining the brand vision and in identifying potential
strategies for extension. If the product world dominates and the brand world, values
which exist over and above the products themselves, is weak, then the brand only has
its product heritage to leverage. A decision might then be taken to invest first in
regenerating the brand world, prior to investing in diversification. Unless a brand has
extremely strong product values (owning a value such as innovation or, in food, taste
excellence) it is likely that an extension would need to be taking with it the brand
world.
A good example of a brand whose extension strategy began with defining and creating
a powerful brand world prior to diversification, is Gillette. The Best a man can get
campaign not only supported its core business of razors but defined a territory into
which a male toiletries range could be launched. If it had relied purely on its functional
razor heritage it would have struggled to attract consumer interest.
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It is not enough, however, to have a strong brand world. Brand world values vary in
their potential to open doors for diversification regardless of how strong and motivating
they are in the brands core category. For example values such as Authenticity,
Originality, Single-mindedness can be extremely limiting whereas Innovation,
Sexiness, Stylishness, Exclusivity clearly lend themselves to diversification. So this is
where brand vision comes into play. If a brand doesnt currently own values which
facilitate diversification, it has to set about acquiring them. Rarely is it possible to do
this via extensions (unless product values can offer something genuinely differentiating
in a new category). More usually these values have to be acquired whilst the brand
remains in its home category.
BRAND ELASTICITY AND BRAND EXTENSION STRATEGY
It is clear from the above that a structured and disciplined analysis process should take
place in order to develop a brand extension strategy. On evaluating the brands
elasticity, understanding the relative strength of product versus brand values, it should
be possible to draw up the brand vision and the extension strategy which is coherent
with and able to make a positive contribution to that vision.
Clearly consumer understanding plays an important role in this process. With this
approach, however, that understanding is clearly situated within a strategic framework.
Below is a summary, in diagram form, of the first stage of the Brand Extension Model.
Figure 5
Motivation for Extension
Extension strategy/ies
Evaluation of Brand Elasticity
Formulation of Brand Vision and

Extension Strategy
STAGE 2
EXPLORING THE BRAND EXTENSION OPPORTUNITY
A guiding principle for exploring brand extensions is to begin with the category into
which the brand is entering and not the brand from which the offering is stretching. The
reason for this is simple. An extension may be credible and logical for a brand, building

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on its current values, but unless it is genuinely differentiating in the new category the
extension will fail. So for example in 1986 Timotei, the haircare brand, launched a
skincare range embodying the values of naturalness, simplicity and frequent use. It was
not a success not because those values were not relevant in the sector but because they
were already offered by brands such as Simple, Nivea and Body Shop.
A second danger is that the values embodied by the range extension offering are
differentiating but simply not relevant. Dove, on entering the deodorant category, was
at pains to establish efficacy credentials rather than leading on a gentle moisturising
platform. Without efficacy the other values are irrelevant.
So in our structured approach to brand extension research and planning we must next
explore fully the dynamics of the category of entry, gaining a clear understanding of the
product pre-requisites and consumer needs; the brand map and the territories occupied;
the levels of marketing activity and quality of communication support. This
understanding of the status quo may well involve a variety of disciplines such as
semiotic analysis, quantitative evaluation of media budgets set against volume sales and
levels of profitability, expert workshops and of course consumer research. The
objective of all this analysis is to ensure that the extension is evaluated in the right
environment against meaningful benchmarks.
For the questions at this point are: How competitive and differentiated is the brand
extension proposed? How will it compete in the marketplace? What is it about this
offering that will make people want to buy it? These are obvious questions but
impossible to answer if the offering has only ever been looked at through the lens of the
parent brand and out of the context of the harsh reality of the destination category.
So what is called for here is a process of analysis and thinking which brings together
category understanding, consumer understanding and an interrogation of the brand
extension offering itself. Note what we are avoiding is a directionless questioning of
the consumer along the lines of what if Brand X were to enter this category, what
would you think Instead we would be exploring a defined product offering or
offerings (depending on whether the previous stage 1 of the process had identified only
one or a number of alternative extension strategies). Moreover at this stage we would
not be asking consumers to reflect on the implications for the parent brand but rather to
focus on the products desirability in its own right within the new category.
At the end of this analytical process we would be seeking to answer a simple question:
is this a viable offering in the category? As Lury said in his article:
It is a clich, but asking yourself whether you are offering something better, different
or cheaper is still a great way of avoiding expensive failures

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Figure 6.
Destination
Category
Evaluation
Evaluation
of strength
of proposal
JUDGEMENT
ON SUSTAINABILITY
If Positive
If Negative
Brand Equity Balance
STAGE 4
THE BRAND EQUITY BALANCE
Assuming that the answer to the above question is affirmative then the thinking and
analysis process should continue to the final stage re-introducing the brand vision and
the current brand equity. Consumer research clearly does have a role to play at this
point but ultimately the picture is once again completed by analysis, judgement and
intuition rather than consumer answers to a series of direct questions.
The inputs may be many and varied but the aim is to draw up what we have termed the
Brand Equity Profit and Loss. The concept is very simple indeed although arriving at
the information is rather more complex. We seek to understand what values from the
Brand Core the extension draws on and whether that is likely to result in any sense of
dilution or weakening of the brand equity (Loss). We also come to an understanding of
what the extension will potentially invest in the Brand Core (Profit). Finally we arrive
at a view of the resulting Brand Equity Balance. Only if there is a positive balance
would it be our recommendation to proceed. Weakening brand equity for the sake of
sort term volume is not a wise path to tread.
THE BRAND EXTENSION MODEL IN SUMMARY
We have now worked through the entire Brand Extension Model illustrated in its
entirety below.

Fuller and Parsons
STOP
18
Figure 8.
Motivation for Extension
Extension strategy/ies
Evaluation of Brand Elasticity
Formulation of Brand Vision and

Extension Strategy
Destination
Category
Evaluation
Evaluation
of Strength
of Proposal
JUDGEMENT
ON SUSTAINABILITY
If Positive
Brand Equity Balance

Profit and Loss
Brand Core Profit
If Negative
STOP
Brand Core Loss
BRAND EQUITY BALANCE

Fuller and Parsons
19
IN CONCLUSION
In presenting a model for exploring brand extension initiatives and emphasising the importance
of strategic thinking and brand vision, the intention has not been to deny the importance of
consumer qualitative research in the development process. Indeed without indepth consumer
research it is impossible to come to an informed view about a brands elasticity. Similarly how
can one gain a real understanding of category dynamics and the positioning of key competitors
without consulting the consumer perspective? Indeed our intention has not been to undermine
the qualitative researchers role. Rather it has been to enhance it by insisting that analysis and
recommendations resulting from these studies do not take place in a strategic vacuum, thereby
increasing their value and credibility. The truth is that qualitative researchers must demonstrate
their strategic thinking if they want to become partners in the brand extension process. The
piecemeal manner in which the qualitative contribution is currently bought in makes it
difficult for the industry to do justice to the quality of its thinking.
Moreover in an age in which brand managers rarely work on the same brand for more than two
or three years, qualitative researchers, who have worked consistently on the brand for a
prolonged period of time, are most able to fulfil the role of brand guardian. They understand
how an extension is likely to impact on brand equity and are well placed to insist that the brand
equity equation is not overlooked in the rush to increase volume. Qualitative researchers
should not be afraid to impress on clients this area of expertise born of consumer
understanding.
If the industry can just have the confidence to sell its thinking (informed by consumer
understanding) rather than its doing (groups, depths etc.) it is well placed to play a central role
in the brand extension projects of the future.
References
Edwards, Paul.
The age of the trust brand (Market Leader, 1998)
Feldwick, Paul.
Do we really need Brand Equity? (ESOMAR, 1996)
Fuller, Kirsty & Collier, Maggie.
Choose change: forward-looking research at its best

(ESOMAR, 1998)
Gander, Paul.
Decision Maze (Marketing Week, December 2000)
Hall, Mike.
The nature of brands in the New Era (Admap, April

2000)
Howard, David.
Stretching a Point (Admap, March 1997)

Fuller and Parsons
20
Lury, Giles.
Extension leads: are brands elastic? (Brand Strategy,

March 2000)
Page, Graham & Farr, Andy.
Do you have an Elastic Brand (ARF Week of

Workshops, New York, November 2000)
St-John, Catherine.
Putting brands on the rack (Brand Strategy, August

2000)
Acknowledgements
Thanks to Maggie Collier of Flamingo for her contribution to the thinking contained
in this paper.

Fuller and Parsons
21
Brand Extensions or Brand Pretensions

Uncovering the difference
James Parsons - Director, Flamingo
Kirsty Fuller Director, Flamingo
Introduction
At Flamingo we have found ourselves increasingly involved in brand extension related issues
and have become sensitised to how the changing dynamics of brands and the branded
marketplace have implications for research. Brand extension or brand stretch is a field where
the research world is facing stiff competition from management and strategic consultancies, all
too keen to lay claim to this business. These consultancies are often weak in understanding
consumers and the dynamics of brand relationships but strong in marketing theory and brand
strategy. In qualitative research we are strong in consumer understanding but in the past have
been guilty of an absence of coherent strategic thinking leading to simplistic research design
and solutions based solely on consumer feedback i.e. consumer as jury.
The heart of the matter

This paper will set out to explore the complex issues surrounding the extension of brands into
new categories. In the past evaluation of brand extension opportunities has focused on
functionality and proximity ( David Howard, Admap March 1997). With the move from a
brand paradigm of product differentiation to one of emotional differentiation (BBH) we need to
think about brand stretch in a different way. The paper will consider the role of qualitative
consumer research; its value, its limitations and the importance of strategic thinking and
analysis. We will outline an approach to brand extension research in which the issue of long
term brand health takes pride of place and where there is recognition of what is within and
what is outside the consumer remit.

Fuller and Parsons
22
There are 3 main components to our approach:
The category of interest

Dynamics
Brandedness
Salient imagery
Brands positioning and contribution within the category

Premiumness
Point of difference
Relevance/compellingness of emotional/personality values
Impact on mother brand

Extent to which positively contributes/enhances
We will emphasise the need to evaluate brand extension opportunities within the context of a
brand vision rather than in the context of the here and now - one of the key reasons why
consumer input must feed into the analysis rather than dictate the outcome. We must be the
visionaries not the consumer. If we become slaves to what consumers said then we can wave
goodbye to the major brand extension briefs. The management consultants will snap them up
with relish.
The paper will be based on work we have conducted for a number of clients across the globe
and will allow us to illustrate how brand stretch can vary by geography.
Levis (Global)
Global Licensing Research
Lynx
Brand extension into shaving
Magnum (Europe)
Extension into snack products

Fuller and Parsons
23
Cross pens (globally)
New product opportunities
PlayStation (Europe)
From hardware to software
We would also interview a number of high profile clients and planners on both sides of the
Atlantic and integrate their thoughts and ideas with relevant published material.
References to date
Howard, David
Stretching a point
Admap march 1997
Feldwick, PaulDo we really need brand equity
ESOMAR 1996
Edwards, Paul
The age of the trust brand
Market Leader 1998
Hall, Mike
The nature of brands in the new era Admap , April 2000
Authors
James Parsons and Kirsty Fuller are both directors of Flamingo, an international qualitative
research specialist.
Kirsty has worked on the Levis brand in Europe and across the globe for the past 10 years.
She presented a paper at the 1998 Esomar congress Choose change:forward-looking research
at its best and has spoken at a number of ESOMAR and AQR seminars.

Fuller and Parsons
24
James Parsons presented a paper at a recent ESOMAR seminar, Me nuh ave nuh time fe nuh
bag a chat (I have no time for any nonsense) which was nominated for the Goodyear award.
He is a global research specialist working across Europe, Latin America, Asia and Africa. His
brands include Magnum, Red Stripe beer and Cross Pens.

Fuller and Parsons

Brand Extension or Brand Pretension

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Brand Extension or Brand Pretension

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Brand Extension or Brand Pretension

Uncovering the difference

Kirsty Fuller, Director, Flamingo

This paper explores the limitations and value of qualitative research