Brand extensions are a tried and true brand strategy for many consumer brands. These extensions stretch the value of the brand equity and recognition beyond its traditional product line. It is also a way to offer something fresh out of the kitchen to excite the audience. The new item(s) add brand value and provide additional revenue streams. It's also a way to solidify brand loyalty.
Kraft Heinz recently used a brand extension strategy when it launched Just Crack an Egg. It is the first product that offers a savory hot breakfast made with real ingredients that can be prepared in less than two minutes. Here's more on how they did it so other companies can consider a similar approach.
The Rationale for This Recipe
Greg Guidotti, Head of Marketing at The Kraft Heinz Company, said the idea came from one of the most common consumer food dilemmas. "Up until now, there wasn’t a fresh, savory breakfast option that was fulfilling what people wanted. With existing breakfast choices, there were inherent compromises and trade-offs between convenience and freshness."
Eggs are a prime example of a breakfast choice where there is love to eat it-hate to make it relationship. Consumers realize eggs are an important part of a balanced diet. However, going through the steps of making eggs is not always that easy. Enter Just Crack an Egg.
Cracking On with Targeted Marketing Strategies
To promote the launch, the brand enlisted NFL stars (and Houston Texans teammates) Deshaun Watson and Deandre Hopkins to participate in a massive egg toss challenge. During the challenge, Deshaun’s accurate passing and DeAndre’s soft hands are put to the test.
According to Guidotti:
As one of the hottest quarterback and wide receiver duos playing football right now, we knew these two teammates would be able to show Americans just how far eggs can go and put their playful, athletic twist on the challenge. Aside from their achievements on the field, Deshaun Watson and DeAndre Hopkins are also breakfast-lovers with busy schedules. We know it’s tough for them to find breakfast options that are fresh, fast, and delicious. As teammates and friends, there was an inherent trust and instant rapport between them, and you can see that chemistry in the video. In this way, influencer marketing and video marketing can take on a significant role in marketing a brand extension product."
Additionally, Kraft Heinz launched a fully integrated, comprehensive advertising campaign. The campaign was launched across TV/video, digital, print, social and in-store channels. “The Lonely Egg” campaign highlights Americans’ dissatisfaction with their weekday breakfast, and introduces the product as a way to reignite their love for breakfast. As a result, Just Crack an Egg is gaining considerable attention in the brand extension arena as a case study and by consumers that are gobbling up this unique food product.
The Brand Extension Process
There are many steps that go into introducing a brand extension. This includes the product, how it will be packaged, and the marketing process. For Kraft Heinz, the start of the brand extension goes back to the consumer. Guidotti explained, "Our strategy at Kraft Heinz is to drive brand growth through consumer-led product renovations and innovations. In past years, you’ve seen us re-invigorate existing brands like Kraft Macaroni and Cheese and Oscar Mayer Hot Dogs as well as focus on big bets like last year’s O, That’s Good! This year, we’re continuing that with Just Crack An Egg."
At the heart of the brand extension process, there is in-depth consumer research. The resulting insights drive all innovation at Kraft Heinz, which helps the company make informed decisions on everything. This includes how the product is packaged and presented to consumers, how it is brought to market, and how its story is told. This spans shopping habits and visits in-home to more primary research.
Kraft Heinz believes Just Crack An Egg can be a powerful platform moving forward. Based on their preliminary projections, they predict that it can reinvigorate breakfast and grow the entire egg category. They plan to continue using fresh eggs in new ways as the differentiator for solving consumers' mealtime challenges.
And, for other brands thinking of starting a brand extension, now's the time to get cracking on this best practices approach conceived by Kraft Heinz for your own target markets and product portfolios.
