At Heavenly ski resort and Kirkwood ski resort, a full set of colorful condiments stood quietly near the dining area. They include ketchup, mustard, mayonnaise, ranch, barbecue sauce, and even Bull’s Eye sauce. All were arranged in a neat row of colorful pumps, like Lego.
I noticed that every container, no matter the flavor, was marked with the same brand, Heinz. I always thought Heinz was only about ketchup, its hero product. But here, it offered more than that.
Usually, consumers determine the success of brand extension. But in this case, the producer takes the lead. By offering a well-designed and complete set, Heinz makes it easy for lodge managers to decide. Once the managers accept the set, skiers follow. They cannot select a different kind of mustard like Dijon, or switch to another brand. Brand extension may not be shaped only by end users like us, but rather co-created by those in the middle who make the decisions behind the scenes.
The same rule applies to the student cafe in Stanford. There is a set of container of mayonnaise, ketchup, and mustard with Heinz and then there are a few Tabasco pumps.
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Reference
Aaker, D. A., & Keller, K. L. (1990). Consumer evaluations of brand extensions. Journal of marketing, 54(1), 27-41.
Two studies were conducted to obtain insights on how consumers form attitudes toward brand extensions, (i.e., use of an established brand name to enter a new product category). In one study, reactions to 20 brand extension concepts involving six well-known brand names were examined. Attitude toward the extension was higher when (1) there was both a perception of “fit” between the two product classes along one of three dimensions and a perception of high quality for the original brand or (2) the extension was not regarded as too easy to make. A second study examined the effectiveness of different positioning strategies for extensions. The experimental findings show that potentially negative associations can be neutralized more effectively by elaborating on the attributes of the brand extension than by reminding consumers of the positive associations with the original brand.
