Brand Extensions Create Value for Customers and the Company

Corporate Challenge: An alcohol beverage company made a flavored beverage that became an instant success and created a new market category.  Competitors entered the market space and took away market share.

Ironbound Strategy: Create different versions of the popular product to grow the market category.  Use the same brand name to leverage success for the new products.  Testing the new products in markets where the brand is most popular will create value for the brand.

Ironbound Action: Jefferson’s, Four Roses, and Jim Beam all began with successful and popular standard Bourbons.  They each leveraged the success of their brand to create up-market premium products and inexpensive entry level products.  These vertical brand extensions allow more consumers to reach for their preferred brand instead of switching to a competitor.