Cadburys Once Made Mashed Potatoes: The Perils of Brand Extension
I know, right? Cadburys, the brand we grew up loving for chocolate, also sold instant mashed potatoes. Chocolate was the one thing I was promised if I ate my potatoes as a child. No wonder my faith in Cadburys as the finest chocolate brand was shaken.
The instant potatoes I’m talking about are Smash, aimed at the new microwave generation of working mums. After very little sales success, Cadburys sold Smash in 1986, but at the real cost of lowering their brand’s perceived quality.
“Where is Smash now? It thrives under Premier Foods, selling around 150 million packs a year under the Batchelors brand.”
The Point
Firstly: “Oi, Cadburys – No!”
Secondly: just because a brand succeeds in one area doesn’t mean it will succeed elsewhere. Cadburys’ line extension didn’t leverage their chocolate brand equity—it cannibalized it.
Sometimes brand line extensions simply don’t work. And sometimes, they just don’t make sense.
Famous Brand Extension Failures
- 1982 – Colgate: Frozen Foods
- 1988 – Bic: Disposable underwear
- 1989 – Bic: Fragrances
- 1999 – Cosmopolitan magazine: Yoghurts
- 1989 – McDonalds: Pizza
- 1990 – Coors Beer: Sparkling Spring Water
- 2015 – Burger King: ‘Flame’, a meat fragrance for men (promotional stunt)
“Brand extension is a logical business progression. If a business wants to expand, it needs to sell more things to more people. Right? Nope. Bad Cadburys – now go to your room and think about what you’ve done.”
The Brand Line Extension Trap
There’s a false sense of security created by brand equity, lulling brands into thinking extending their name is a win-win. Cadburys Smash was an extreme jump from chocolate to potato, so let’s look at a less extreme example.
In the late 1970s, 7 Up had an 8% share of the soda market. To increase market share, they introduced Cherry 7 Up, 7 Up Gold, and Diet 7 Up. Sales didn’t rise—they crashed by nearly 5%. Customers couldn’t relate to the new line extensions, and the new products detracted from what made 7 Up unique.
“By trying to appeal to new customers, they lost the appeal of their existing customers. Sometimes keeping your focus narrow can actually broaden your reach.”
When Does Brand Extension Work?
“If you’ve built your brand around an ideal, don’t change, challenge, or be seen to question that ideal.”Coca-Cola tried to ‘fix’ their famous drink with New Coke. Public backlash forced the reinstatement of Classic Coke. Confusion ensued, sales dipped. Lesson: don’t tamper with what your customers already love.
Brand extension works best when your brand is associated with a value proposition, not just a commodity.
Examples of Successful Extensions
- Virgin: Not always visually impressive, but the brand narrative of doing things better, differently, or with adventure carries through multiple lines—from airlines to cola.
- easyGroup: Synonymous with value; their sub-brands, from pizza to property, remain consistent, recognizable, and clear.
“Brand extensions can work, but staying true to your brand positioning and value proposition is crucial if you don’t want to end up in the Museum of Failure.”
Key Takeaways
- Brand line extensions are tempting because they are cheaper and quicker than launching a new brand.
- Success depends on alignment with your brand positioning and value proposition.
- If your extension makes customers do a double-take, your brand ego is likely getting the better of you.
Remember: brand equity is built on trust, recognition, and consistency. Extend wisely—or risk becoming the mashed potatoes of your own success story.