Brand stretching without breaking: Using behavioral data to guide innovation

Brand stretching is a high-reward, high-risk strategy that requires a deep understanding of core identity, market dynamics, and, most of all, consumer behavior and needs. Brand stretching into different categories is just like that but twice as risky.

Innovation is at the heart of successful brand expansion, yet it is a challenging path. Research shows that around 95% of new products fail each year, highlighting the importance of a well-informed approach to brand stretching. On the flip side, companies that successfully innovate can see significant rewards—according to McKinsey, 84% of executives say that innovation is critical to growth, but only 6% are satisfied with their innovation performance.

Lessons from successful brand extensions

The success of a brand extension depends largely on how well it aligns with consumer expectations and core brand values. Apple is a textbook example of seamless brand stretching, evolving from computers into music (iPod), mobile phones (iPhone), and even financial services (Apple Pay) while maintaining its brand essence of innovation and premium experience. Nike has successfully expanded beyond footwear into apparel and sports tech, strengthening its identity rather than fragmenting it.

Another prime example is LEGO, which transitioned from being purely a toy manufacturer to a major player in the entertainment industry. While the toy industry and the animated film sector are vastly different, LEGO’s move into movies was a natural extension that reinforced its brand identity.

Navigating category expansion: Understanding the risk spectrum

Not all brand extensions carry the same degree of complexity. A company like Coca-Cola introducing new flavors is a relatively low-risk extension—consumers already perceive the brand as a beverage leader. However, a move into alcoholic beverages through a collaboration with Johnnie Walker introduces a new layer of risk. The challenge here is reconciling distinct brand identities, managing regulatory shifts, and ensuring the extension feels authentic to consumers.

When entering a completely new category, brands must consider:

• Relevance: Does it meet the true needs and lifestyles of the consumers?

• Credibility: Does the brand have the authority to play in this new space?

• Value Addition: Does this move strengthen the brand, or does it risk alienating loyal customers?

• Execution Strategy: Is the transition backed by the right partners, marketing, and consumer insights?

Beyond risk reduction: How research fuels creative innovation

While research is often seen as a tool to minimize risk, its role extends far beyond that. Iterative testing of the early-stage innovation processes and behavioral insights can actively shape the innovation, ensuring that new product ideas are not just viable but also resonate with consumers in meaningful ways. By continuously engaging with consumer behavior data, brands can refine their concepts, tweak messaging, and even discover new opportunities they hadn't initially considered. ‍

Testing early prototypes, understanding emotional reactions, and observing real-world interactions allow brands to craft innovations that are not only market-ready but also emotionally compelling and creatively unique. Instead of seeing testing as a final checkpoint before launch, forward-thinking companies integrate it throughout the development process to enhance creativity, sharpen positioning, and align with evolving consumer expectations.

The power of smart innovation testing

Before committing to a new market, brands must validate their ideas with real consumer behavior data. EyeSee’s behavioral research solutions provide deep insights into purchase intent, engagement, and category fit through methodologies like virtual shopping, eye-tracking, and emotion recognition.

Now, with our partnership with Veylinx, EyeSee offers an even more extensive toolkit for behavioral concept testing. Veylinx’s auction-based methodology ensures that respondents have financial stakes in their decisions, creating a more accurate predictor of real-world purchasing behavior. By putting ‘skin in the game,’ brands can assess genuine consumer demand before investing heavily in a new product launch.

Will BrewDog’s latest brand stretch be a hit—or a miss?

One of the latest entries in the UK brand stretching scene comes from BrewDog, the craft beer giant known for its bold marketing and boundary-pushing innovation. Their latest move? A line of sauces and seasonings inspired by their most popular beers, including Punk IPA Hot Sauce and Elvis Juice BBQ Sauce.

At first glance, the extension seems logical: both products share a flavor-forward positioning and appeal to a similar demographic of adventurous, taste-driven consumers. But while the connection is creatively intriguing, the move also raises important questions. Will beer lovers want those same notes in their meals? Can the brand’s rebellious identity translate to a crowded and highly competitive condiment aisle?

This leap—from drinks to food—is a significant one. Unlike minor flavor innovations or packaging tweaks within the same category, venturing into culinary condiments requires new production capabilities, retail strategies, and consumer education. While BrewDog has strong brand equity, this experiment will test how elastic that equity truly is.

In conclusion

Brand stretching, when executed with precision, can be a growth engine. However, it requires a delicate balance between ambition and careful validation. The right research tools, consumer insights, and strategic alignment can mean the difference between an expansion that enhances brand equity and one that erodes it. By leveraging behavioral testing and innovative methodologies, companies can make informed, data-driven decisions—turning risk into opportunity and bold ideas into lasting success.

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