Client Results

Entering New Markets

Brand Stretching into Exciting New Categories

Leading brands for a global food and beverage conglomerate were interested in more revenue opportunities from a long-term innovation stream based on strategic fit and where the brands could add meaningful new value. Stakeholders in the two brands were looking for opportunities outside their current categories where existing customers could follow the brand and where the brand could attract new users. A large number of categories could fit well with each brand’s core equities, so the company sought brand extension research to size potential opportunities and to prioritize organizational focus.

Tapping into the spirit of creativity and ambition to discover new fertile business opportunities

LRW conducted research among current brand customers and non-customers open to using the brand, testing potential fit with 15 categories per brand. We applied our Direct Fit methodology to capture stated interest if each brand was to launch a particular product. Meanwhile, an Indirect Fit methodology measured alignment between brand equities and what’s important in a product in their target categories. Opportunity analysis looked at the size of the categories, category growth trends, and the unique equity the brands could provide compared to overlap with the category brand leader. Our assessment also took into account the brands’ current capacities to manufacture versus long term investments.

Our research provided the client with a number of takeaways, including:

  • A strategic framework for identifying brand extension opportunities that has been adopted by other brands in the client’s portfolio
  • Brand extension mapping for each category, from closest in to furthest out from the brand’s core category, with supporting rationale
  • Organizational agreement on priorities for each brand as worked out in collaborative workshops
  • Recommendations for where to invest and manufacture versus license to third party
new business frontiers

New Business Frontiers

Explored 15 new categories for possible expansion

growing bigger stronger

Growing Bigger & Stronger

New products ranked among top 10 for sales growth in Food & Beverage category

bucking the trend

Bucking the trend

2.4% growth for a key brand while its legacy category declined

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