We know Colgate as an oral care brand - the one that put toothpaste into the tube but did you know about Colgate kitchen entrees? Yes, In the ‘80s, Colgate tried to enter into frozen food products.
Colgate attempted to use its existing loyal customer base to promote Colgate Meals. The idea was that post-Colgate dinner people would use Colgate toothpaste and Colgate can run marketing campaigns on the same lines to drive the growth for both products.
So why did it fail (apart from the fact that a Colgate logo on a meal box makes us think we are having toothpaste)?
1. Colgate brand name was simply not appetizing
2. Colgate brand identity is Oral health care & personal care
3. The Characteristics of old & new products were not the same
This of course doesn’t mean that brand extension in an unrelated market doesn’t work. Look at ITC or Alphabet. ITC has been successful in selling unhealthy products like tobacco & healthy food products like Ashirwad Aata under different brand names. Alphabet too is present in a varied range of businesses from Search engines to Payments.
So why did they succeed?
1. Partnership with government & central banks
2. Spot platforms for business to engage customers
3. Peer-to-Peer transaction
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