Case Study 3Case Study 3: Brand Extension
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The client, a footwear manufacturer licensing a powersport brand, wants to identify how to
position a brand extension to increase sales and increase brand relevance among non-core users.
Client Problem
The client wants to identify how to position its spin-off footwear brand and measure brand relevance outside of core-user segment.
StandPoint’s Approach
Research in the form of telephone interviews, online surveys and focus groups in 8 top US markets was conducted among wearers, non-wearers and retail buyers in current and desired distribution channels.
Conclusions and Recommendations:
- The footwear division is a very profitable niche brand but it is only successful among core users and has a low-relevance to non-core users.
- Lack of communication and direction from the client to the dealer has led a lack of a standardized footwear marketing plan at the dealer level.
- StandPoint recommends concentrating marketing initiatives towards core customer base. Spending should be allocated toward new product development and a more aggressive marketing and channel management program among dealers.
Next Steps
In order to gain understanding of who the brand might appeal to in the future, StandPoint recommends an ethnographic research study and a re-examination of the points of distribution for the footwear brand. To improve communications between the client and their distributor network, personnel have been hired to manage the footwear product line.
Implications
As a result of the research findings, the client management team now treats the footwear brand as a highly profitable niche in a larger portfolio. The repositioned brand is on target to contribute a sizeable percentage to parent company’s pre-tax earnings.
