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During a pandemic, this doesn’t seem like a good time to create a brand extension. However, creating a brand extension in uncertain times is a smart move. Some say brand extensions weaken brands. This is wrong. Well-managed brand extensions strengthen brands.

A really good brand extension shares character with its parent brand. At the same time, brand extensions offer relevant and differentiated benefits for parents. A really good brand extension increases the number of times customers experience the entire brand promise. Repeated positive experiences with the brand family strengthen the customer’s conviction of the brand promise. The increased brand loyalty, together with the more frequent use, increases customer loyalty.

A great example of the power of a brand extension is Tide. Original Tide Powder is now being expanded to include different types of products, different customer needs and different formulas. On the Tide website, Tide brand extensions are sorted by type (Pacs, Powder, Liquid, Stain Remover, etc.), requirements (deep cleaning, odor removal, brightening, etc.), and products (Tide Hygienic Clean Heavy, Duty 10x Collection, Tide PODS) Odor defense, Tide PODS Plus Febreeze etc.)

How Panera expanded its worth

Panera launched Panera Grocery on April 8, 2020. Panera Grocery was an exceptional companion for Panera’s restaurants. Panera, the fast, casual bakery-café serving pasta, sandwiches, soups, and specialty drinks, was aiming to generate a brand expansion when the coronavirus hit. Panera saw an immediate customer need. This customer need complements the bakery-café and at the same time responds to the new behavior of customers.

The guiding principle of Panera Grocery is to make good and clean food available to everyone. Panera Grocery allows customers to buy coveted foods such as bread, milk and fresh products. Customers can also buy Panera favorites like sandwiches, soups and salads. Panera Grocery’s brand promise is “From our pantry to yours”.

On his debut, Panera’s CEO Niren Chaudhary said, “From the limited selection of grocery shelves to the growing need to limit the number of trips outside the home, it’s an incredibly stressful time when it comes to getting healthy food on the table lay. and we knew Panera could help. “Mr. Chaudhary continued,” With this new service we can help you deliver great food and fresh ingredients from our pantry to yours, and better access to essential items that are increasingly difficult to come by. “The result of these comments reads: Panera Grocery “… is just one of the ways Panera has created to help people with a simple, healthy meal that everyone will love.”

Panera’s groceries have prices comparable to grocery stores. This is because Panera purchases in bulk for its in-store restaurants. Of course, the food in the store is moribund at the moment. Instead of wasting these healthy foods, we offer them to our customers. This approach also keeps Panera’s supply chain in business.

Sara Burnett is Panera’s vice president of wellness and food policy. Ms. Burnett told the Canadian press: “… the decision to sell groceries is a response to the unprecedented crisis our country is going through.”

According to BXP Magazine, a magazine for the packaging industry, Panera uses its existing supply network for clean ingredients. Panera Grocery is helping Panera “… stand out for its loyal customers by alleviating their concerns about the fragility of the grocery supply chain.” Additionally, BXP magazine writes, “Panera can promote its brand message as a social advocate of clean and healthy food Continue to strengthen nutrition. “

Panera Grocery’s PR announcement states that Panera Grocery is expanding Panera’s commitment to clean products. Clean means free of artificial preservatives, flavors, sweeteners and colors from artificial sources. As with really good brand extensions, Panera Grocery delivers on the Panera brand promise in a different and relevant way. Panera Grocery products are shipped “carefully packaged” with all orders sealed for added protection.

Panera Grocery is also available through multiple channels. Panera groceries can be ordered via the Panera app or the website. You can choose between contactless delivery, fast pick-up, drive-up, drive-thru or grubhub.

Panera introduced another new brand extension. Panera at Home consists of packaged retail products: soups, chilli, mac & cheese, pasta, bottles of salad dressings, sliced ​​bread, coffee, craft brand and rolls. These are Panera favorites that a customer can buy in selected grocery stores. Panera at Home items are also available online at Shipt, Peapod, Amazon, Keurig, and Instacart.

A survey by Innova, a global leader in food and beverages, found that 46% of consumers see Restaurant branded items as a convenient way to have a dining experience at home. Innova calls this “omnichannel food”. Panera offers favorite items labeled Panera that are available through multiple channels.

Six out of ten consumers surveyed by Innova want to know where the food they buy comes from. Innova calls this need “transparency”. Transparency encompasses requirements for “ethical, environmental and clean labels”. Panera already has transparency. Panera promises: “… a commitment to transparency and options that enable our guests to eat the way they want.” This statement fits in well with Panera’s overarching promise of “Eat the way it should be”.

64 percent of Innova respondents said they found ways to tailor their lives and products to their individual style, beliefs and needs. And six in ten look for foods and beverages that support your personal immune system. Panera explains: “… (Panera) continues to find ways to be an ally for wellness for our guests.” With Panera, a customer doesn’t have to compromise in order to eat well.

Branded companies that survive and grow during the coronavirus crisis need to be flexible. They need to have a laser focus on their customers. You have to use common sense.

Instead of building an entirely new brand during a crisis, brand extension is a great idea. Panera is a great example of how branded companies can build their franchises in a time of general decline.

Contribution to Branding Strategy Insider by: Larry Light, CEO of Arcature

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