KEY INSIGHTS

DO YOU KNOW THE QUESTIONS TO ASK?

Publishers should ask themselves the following questions before making a plunge into extending their brands, according to Steve Harvey, Cofounder of FabrikBrands, a creative and branding agency:

1. Is there a desire for the new product? Can you find a USP that will sell your extension?

2. Is the extension natural for your brand, or does it seem forced?

3. Is your existing brand reputation strong enough to support a new product, service or marketplace?

4. Do your customers trust you enough to see the value in your offering?

A POTPOURRI OF PRODUCTS

In 2019, BuzzFeed's Tasty launched:

• A suite of ice cream flavours created in partnership with Nestle

• Spice blends created with McCormick

• A set of meal kits produced in partnership with Mistica

• A cake decoration product with Wilton

• A set of wines with Wines That Rock

• A line of kitchen appliances with Cuisinart

• Pre-made side dishes with Food Story

• Expansion of Tasty's kitchenware outside the US, in partnerships with kitchenware manufacturers Fackelmann in Europe, the Middle East and Africa and Continente in Latin America

ARCHIVAL PHOTOGRAPHY AND PERSONALISED FRONT PAGES

The New York Times is currently selling branded apparel (sweatshirts, t-shirts, caps, etc…), books, archival photography, and personalised front page reprints. To control quality, the publisher holds its own stock. Reuters Community

A WINNING FORMULA

“When you combine the insight we can glean from hundreds of millions of consumers, the relevance of iconic brands in our stable and the power of our distribution platforms, I like our chances in any market environment.” — Josh Stinchcomb, Chief Experience Officer, Condé Nast.

SAME BRAND, NEW SETTING

Looking from the publishers' perspective: “It's a chance for digital media companies to reach their audiences who would recognise their brands in these new settings,” said Diana Gordon, Director, Shop+ at Mindshare North America.

ALL THE RETAIL, NONE OF THE OVERHEAD

These partnerships also allow media companies to get into retail and reach more customers without investing in the expensive overhead of a store, according to Arnaud Simeray, VP of Strategic Partnerships at pop-up location platform company, Storefront.

THIS IS NOT A TREND

“This is the way retail and the shopping experience is moving forward.” — Arnaud Simeray, VP of Strategic Partnerships, Storefront

THERE HAVE BEEN SOME NOTABLE FAILURES

The failure rate of brand extensions can be as high as 80-90%, according to Mitch Duckler, Managing Partner at Full Surge, a brand strategy consulting firm. He gives the example of Kentucky Fried Chicken's (KFC) ‘Finger Lickin' Good' edible nail polish that was launched in 2016. It was supposed to taste like fried chicken and was a flop. The Huffington Post described it as “your worst nightmare coming true”.

FAILING AT THE FINISH LINE

“What most advertising platforms miss out on are the final 20 metres of the 100-metre dash,” Eric Karp, BuzzFeed's global head of licensing, told Digiday. “A campaign creates awareness, drives urgency, but once folks get into those stores, the message is lost, and you simply see your typical retail displays. If we can take elements of the campaign we've created and dress that point of sale, and remind folks of the content we create in the first place, and do so in a way that's authentic, we can drive conversion at point of purchase.” Digiday

FITNESS FITS THE MISSION

The Stylist Group has opened a fitness studio in London, called Stylist Strong. The gym runs five 45-minute classes each day of around 20 people, before work, at lunch and after work, focused on strength training. Classes cost £17 ($22.23). Once a week, it runs talks with key speakers in the fitness arena covering the psychological and practical elements of strength training, like learning how to push through barriers in the gym and at work. Digiday