Companies today are plentiful and once they reach the mature stage, it is about stealing market share or entering a new market all together. Brand extensions occur all the time (a good example would be the rumoured Angry Birds lunch boxes). Although most brand extensions are well thought out and effective, there are some that seem to come out of left field. They are either so completely different that they are not recognised under the same brand name or they are just not necessary for the world to consume. Here are some great examples of brand extensions gone wrong:
a) Cheetos Lip-Balm
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Need I say more than that? Cheetos co-branded with Lotta Luv LLC to create a Cheetos cheese tasting lip balm for the quirky consumer. Why would people need or want the feeling of cheese on their lips for the next 20 minutes, causing them to become chapped due to persistent licking? There was a lack of quality involved with the taste and the look of the product, creating a hugely unsuccessful product extension. This is like putting yoghurt and coke, two delicious products, together in a tube and smearing it on your face. Not ideal.
b) Bic: Disposable Underwear
Are you a female that likes to use lots of sharp stationary objects and needs disposable underwear? Bic tried to leverage their disposability and massive retail availability of their brand to introduce female disposable underwear. This is a case of incorrect brand referral for the consumer. I can’t say for you but when I think of Bic, soft one time use undergarments do not come to mind. Consumers did not associate this brand with their new product because it was too far away from what Bic typically sells. Brand extensions are useful and successful if it can back up your core brand image while entering a new or slightly different market. This is clearly not the case here.