Driving successful brand extension with consumer insights
By Seun Johnson
Consumer behaviour is the backbone of every successful brand extension. To stand out in today’s crowded marketplace requires more than just innovative products. It demands a deep understanding of consumer needs and merging them with brand identity.
Brand extension is when a company expands its product line or services based on consumer insights. This can help a company appeal to a wider audience, strengthen its position, and attract new customers
By leveraging market consumer insights, brands launch new products that resonate with their audience while staying true to their identity and values.
Companies that actively pay attention to their customers through survey and social media feedback usually gain valuable insights into their unmet needs and preferences.
For instance, Colgate, a global oral care and household product company has used consumer insights to achieve successful brand extension.
The company was able to solidify its position in the personal care and household products markets by adding complementary brands to its core offerings. This has allowed it to expand into new product categories and improve its competitive advantage.
In 2018, Peak Milk, a leading dairy brand identified a growing demand for health-conscious products. The company introduced low-fat milk and lactose-free options. These extensions did not only meet consumer needs but also reinforced Peak Milk’s reputation for quality and nutrition.
Also, Dangote Group had leveraged consumer insights to move its business operations from Cement production down to food & beverages with the opening of Dansa Foods in 1994.
The expansion was successful owing to the fact that the company stayed within the realm of essential commodities which consequently reinforced its promise of quality and reliability.
In 2022, MTN Nigeria extended its telecom brand into financial services with the launch of MoMo, a mobile money platform. This move was guided by consumer insights which highlighted the need for accessible financial solutions in underserved areas.
One of the key requirements for brand extension is the need to maintain consistency with the brand’s identity. Once it is properly executed, extensions can strengthen a brand’s image and deepen consumer trust.
Nigerian brands have continued to leverage this strategy to meet consumer demands and expand their market presence.
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