Expanding Your Brand Without Losing Its Essence | Examples

Expanding your brand is a strategic move, yet it often leads to a sneaky unforeseen consequence - BRAND DILUTION. As companies venture into new markets, exploring different demographics or categories, they risk contradicting their brand's identity, confusing their audience, and diluting their brand equity (awareness, clarity, trust, and perceived quality). Preserving this equity is crucial when entering new realms.

The balance between business growth and brand integrity is intricate. Let's look at a few examples that illustrate both success and failure in brand expansion.

Brand Expansion Failures

Tiffany & Co.

Tiffany & Co.: "Not Your Mother’s Tiffany"
In a bid to attract a younger audience, Tiffany & Co. launched a campaign in 2021 that alienated loyal consumers and blurred the brand's true essence by introducing a new campaign with the tagline, “Not Your Mother’s Tiffany.” The campaign's edgy narrative dismissed the very generation that had elevated the brand's success, resulting in significant backlash post its acquisition by LVMH.

Levi’s: Tailored Suits
Levi’s attempted to diversify into custom tailored suits in the 80s, straying far from its known identity of rugged quality denim. However, this move fell flat; consumers associated Levi’s primarily with jeans, making the shift unsuccessful. Even today, when I say “Levi’s ___,” your brain fills in either “denim” or “jeans.” That’s who the brand is to us. Formal wear was too divergent a path to tread for this iconic casual brand.

Harly Davidson

Harley Davidson: Perfume
In 2009, Harley Davidson released a perfume in an attempt to capitalize on its incredible strength as a lifestyle brand. However, this move seemed out of sync with its audience's expectations, cheapening the brand and creating confusion instead of addressing the customers' needs. Perfume, no matter the brand, is inherently associated with an ideal of delicate sophistication and elegance… not exactly the persona Harley fanatics are going for when they engage with the brand.

Successful Brand Expansions

Peloton: Treadmill & Rowing Machine
Peloton expanded beyond its iconic connected bikes to treadmills and rowing machines while remaining true to its purpose of “using technology and design to connect the world through fitness, empowering people to be the best versions of themselves - anywhere, anytime.” Peloton’s expansion resonated with its existing audience while reaching new sub-targets with its respective product expansions - running enthusiasts and rowers.

Spotify: Podcasts + Audiobooks
Evolving from a music platform to include podcasts and audiobooks, Spotify expanded its offerings while staying aligned with its holistic position as an audio brand. This expansion didn't dilute its focus on music, but rather catered to a wider audience within its audio domain. It worked because it’s a natural linear progression - music, then podcasts, then audiobooks - that serves it’s consumers in a more complete way.

Chewy

Chewy: Pet Pharmacy + Insurance
From an online dog food retailer, Chewy expanded into pet pharmacy and insurance, broadening its services while staying loyal to its mission of offering convenience and quality to pet owners. Chewy’s expansion addressed deeper needs within its existing customer base, making sure pet owners feel confident they are giving their dogs and cats the happiest and healthiest life possible.

Bottom line? When expanding your brand, center your growth around your customers' needs and the holistic problems you aim to solve. A customer-centric and purpose-driven approach ensures that expansions resonate with your audience and align with your brand's essence. Focus on serving your existing audience with new products that solve their central problem in more complete and thorough ways (like Chewy). If your expansion involves pursuing a new target audience, be sure to lean into your core values and mission with fresh and relevant narrative, while being mindful to avoid abandoning your current clientele.

If your business is at the cusp of significant change and you’d like some guidance in navigating growth while safeguarding your brand equity, please feel free to schedule a complimentary 30-minute discovery call with me.