case study - examples of brand extension and stretching
Introduction
The following two case studies provide recent examples of brand extension and stretching
Tesco extends “finest” brands into home ware segment
Tesco is extending its Finest brand into
the home ware market and other non-food products such as crockery, cutlery,
cotton bed linen and towels, gifts, vases and glassware.
Tesco is also re-launching the Finest brand with new packaging that uses metallic-based
ink to create better depth and shine, and hundreds of new lines. It plans
to increase the product range from 900 to about 1,250 product lines.
Some of the new lines will only be sold during the run-up to Christmas, but if they sell well they may become permanent lines.
Tesco - the UK's leading supermarket - has already stretched its Finest brand into health and beauty products, such as Silk Creme Bath, Smoothing Body Polish and Whipped Body Souffle, talcum powder, body mist and bath salts.
The Finest range, which was launched nine years ago, is understood to be worth between £400m and £500m a year in turnover.
Rival Sainsbury's has extended its own-label brand, Taste the Difference, to more than 650 product lines. The supermarket plans to increase the annual turnover for the brand, which was launched in 2000, from £400m to £500m by the end of next year.
Safeway is also re-launching its The Best range next February, extending the brand into new categories.
Boots to sell fitness equipment and foods
Boots is to start selling fitness equipment, along with a range of exclusive products that include weight-management foods and organic snacks, in 100 of its larger stores.
Boots has unveiled this new product range to replace the gifts and electrical items that the retailer removed from its stores some time ago.
The new products will focus around several key areas, including exercise, detox, relaxation and sleep. The gym equipment is thought to include treadmills and step and rowing machines.
Recently, Boots has launched a number of well being services, including dentistry, laser eye clinics and health and beauty treatments. The retailer has even launched its own gym in West London.
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