Did you know that Disney has a professional development arm called The Disney Institute? It’s true. They offer organizations “time-tested best practices, sound methodologies, and real life business lessons that facilitate corporate culture change.”
We know what you’re thinking. That’s a strong departure from spinning teacups.
Successful extensions as far afield as this one belong to strong brands. Think of other companies, like Ralph Lauren and Virgin, who have grown far beyond their original concept. They’ve done so by leveraging the power of their core brand to their advantage.
This type of growth is just as possible for B2B companies as it was for these B2C examples. What extensions in both camps require is strong branding, commitment to values and sound relationships with customers.
1. 80% of new products are extensions
Many successful new products rely on the power of their core brand. The consumer psychology is simple: when faced with a new decision, people stick to what’s been reliable in the past.
2. Competitive advantage
Products that stem from existing brand strength have a competitive advantage from the start. Imagine releasing a product and facing no introductory period. People are ready to trust – and buy – much sooner.
3. Less risk
When selling to prospects who already rely your brand, there is less risk associated with new product development. That means your investment is safer and more likely to be profitable.
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