Feb 13, 2025
Brand Extension Case Study: Kentucky Legend Sizzles
Retail Line Brand Extension Launch
Brand extensions can be tricky. Imagine walking down the grocery aisle and spotting your favorite cookie brand now offering… ice cream?
It might sound exciting, but in the world of consumer packaged goods (CPG), such brand extensions are a high-stakes gamble.
We’ve highlighted other brand extensions in the past—that did not work🤔.
Here’s an eye-opening statistic: Studies show that up to a staggering 80% of line extensions in the food industry fall flat. That’s right – only about 20% carve out a place in consumers’ hearts and shopping carts.
Roll the Dice
But why do companies keep rolling the dice on these risky ventures? The answer lies in the potential for big rewards. When a line extension hits the mark, it can leverage existing brand loyalty and recognition, significantly reducing the cost and effort typically required to launch an entirely new product.
Brand Extension Blueprint
Over the years, the NewPoint team has perfected the process. Success isn’t just about slapping a familiar logo on a new item. The “magic” formula involves a delicate balance of brand fit, consumer perception, and razor-sharp marketing strategy. Get it right, and you could be looking at the next big thing in CPG. Get it wrong, and you might join the majority of brand extensions that some studies suggest end up in the product graveyard.
The Line Extension Minefield: Why It’s So Tricky
Expanding into a new product category through a line extension is often described as a “finesse game”—a delicate balancing act between leveraging existing brand equity and meeting the demands of a new market. While the growth potential is enticing, the risks are significant. A poorly executed line extension can dilute the core brand’s identity, leaving loyal customers confused or alienated.
Beware of Cannibalization
There’s also the danger of cannibalization, where the new product eats into the sales of existing offerings rather than driving incremental growth.
To succeed, the NewPoint team has found that stakeholders must deeply understand their brand strengths and the nuances of the category they’re entering. What works for one market may not resonate in another, and assumptions about consumer behavior can lead to costly missteps. Companies can confidently navigate this tricky terrain by aligning the new product with the brand’s core values while addressing unmet needs in the target category.
Kentucky Legend Bacon: A Case Study in Brand Extension Success
Kentucky Legend, already a household name as America’s #1-selling ham, entered the bacon arena with a significant head start.
Boasting a loyal fanbase, initial surveys revealed an impressive 87% purchase intent among existing customers. This presented a golden opportunity but also a potential pitfall: overconfidence. Stakeholders recognized that success in the highly competitive bacon market wouldn’t be guaranteed by reputation alone. Simply relying on brand recognition could lead to a misstep, failing to resonate with bacon aficionados who might not typically purchase Kentucky Legend products.
Methodology
NewPoint’s methodology began our deep history working with bacon brands and intel that included comprehensive consumer research designed to deeply understand the nuances of the bacon market and its consumers’ preferences.
This research went beyond the existing Kentucky Legend customer base, seeking insights from bacon lovers with no prior brand loyalty. The goal was to identify what truly drove purchase decisions in the bacon aisle and to pinpoint opportunities for differentiation.
By combining these external insights with a firm grasp of Kentucky Legend’s brand strengths, NewPoint aimed to craft a packaging and marketing strategy that would resonate with existing and new customers, setting the stage for a successful line extension.
The Perfect Cut
In the intensely competitive bacon category, packaging isn’t just a container; it’s a critical marketing tool that can make or break a brand’s success.
The NewPoint Marketing team understands this. So, when tasked with crafting the packaging for Kentucky Legend’s bacon line extension. Our approach went far beyond aesthetics, prioritizing a research-validated design that spoke directly to consumer preferences uncovered during the initial research phase.
Not Just a Pretty Package
NewPoint’s process meticulously translated consumer insights into visual elements. The packaging isn’t just attractive; it strategically communicates key product attributes and differentiates the new bacon line from the crowded field while fitting into the established Kentucky Legend brand architecture.
Visual appeal is paramount, aiming to catch the eye amidst a sea of competitors. Information clarity was crucial, ensuring shoppers could quickly identify the product’s features and benefits.
Shelf impact was carefully considered, with designs optimized to stand out on the shelf and encourage purchase.
Unique design elements played a vital role in distinguishing Kentucky Legend bacon. Bacon packing “staples,” like a clear package showcasing the product’s quality, strong labeling highlighting natural hardwood smoking, and messaging emphasizing innovative features, all contributed to a distinctive brand identity.
By integrating these elements, NewPoint created packaging that not only looked appealing but also served as a powerful sales tool, driving trial and reinforcing Kentucky Legend’s commitment to quality. The result was packaging that delivered the “perfect cut,” effectively communicating the brand’s story and value proposition to bacon lovers.
More Research, Less Guess Work
Line extensions are a powerful growth strategy, but success hinges on a research-driven, strategic approach.
The Kentucky Legend bacon launch demonstrates how a deep understanding of consumer preferences, market dynamics, and brand strengths can transform a line extension into a market leader.
By leveraging insights from comprehensive research, Our NewPoint Marketing team crafted a strategy that not only preserved Kentucky Legend’s brand equity but also positioned the new product as a standout in the competitive bacon category.
NewPoint Branding & Packaging Expertise
NewPoint Marketing excels in blending data-driven insights with creative execution to deliver impactful results. From packaging design that captures attention on crowded shelves to marketing strategies that resonate with target audiences, our expertise ensures that every product launch is optimized for success.
NewPoint’s ability to align brand identity with consumer needs makes our team a valuable partner for brands looking to expand their portfolios without compromising their reputation.
If you’re considering a line extension or need help revitalizing your packaging and marketing strategy, NewPoint Marketing is here to help. With a proven track record of elevating food and beverage brands, we bring the expertise and creativity to turn your vision into reality.
Contact NewPoint Marketing today to learn how they can help your brand thrive in an ever-evolving marketplace. Your next big success could be just one strategic partnership away!
