Successful brand extensions can be a tricky to accomplish. Brands usually have a strong identity, and are often associated with a single or unique product line. Extending the brand into a new area or industry can be difficult, expensive, and not always successful. The best brand extensions stay true to their original brand identity and market spaces. For example, Coca-Cola can take its strong global brand to include beverages other than sodas, but it would certainly struggle to extend its brand to a new industry such as entertainment.
A new brand extension is underway by Funko, known for its Pop! bobblehead toys and characters. The new entry by Funko is for a line of cereals – FunkO’s – that will have a retro flair and (of course) include a toy collectible in the boxes. The first line will have more than 40 characters and each cereal will have an exclusive U.S. retail partner (not at grocery stores).
The cereals arrive this summer with a suggested retail price of $7.99. The cereal product line will continue the Funko tradition of distributing collectible figures with fun designs. Each cereal box will include mini Pocket Pop! figures and the packaging will have activities, puzzles, and games.
The first releases are expected in July and August, and include:
- Mega man FunkO’s (at GameStop)
- Cuphead & Mugman FunkO’s (at Hot Topic)
- A Nightmare on Elm Street’s Freddy Krueger FunkO’s (at f.y.e.)
- The Lord of the Ring’s Gollum FunkO’s (at Box Lunch)
- Beetlejuice FunkO’s (and Box Lunch)
- Huckleberry Hound FunkO’s (at Funko.com)
Let’s grab a box, munch, and watch cartoons!
Group Activities and Discussion Questions:
- Poll students: Who eats cereal? What type? Who buys Funko products?
- Show Funko’s Web site and the new product line: https://www.funko.com/blog/article/introducing-funko-s-putting-the-fun-back-in-breakfast
- Discuss competition: what are the direct competitors for this product? Indirect competitors?
- Divide students into teams. Have each team compare FunkO cereal product with a competitive product. What are the points of difference (what makes FunkO cereal different from competition)?
- Debrief the exercise.
Source: Guess who’s coming to breakfast? This summer, FunkO’s cereal. (2 July 2018). Brandchannel.com