Tag Archives: Brand extension

Funko Launches Cereal Brand

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:

  1. Poll students: Who eats cereal? What type? Who buys Funko products?
  2. 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
  3. Discuss competition: what are the direct competitors for this product? Indirect competitors?
  4. 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)?
  5. Debrief the exercise.

Source: Guess who’s coming to breakfast? This summer, FunkO’s cereal. (2 July 2018). Brandchannel.com

 

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Cirque du Soleil Goes to the Mall

There are days when walking around the local shopping mall can seem like a walk amidst a ghost town. Is it due to the impact of online shopping? Or is it boredom with the same old retail experience? Are shopping malls dying?

To help shake up the routine mall experience, Cirque du Soleil is taking its show on the road and directly to consumers through a new concept called CREACTIVE, an indoor family entertainment experience. CREACTIVE will be installed in indoor centers and offer a variety of Cirque du Soleil activities such as bungee jumping, aerial parkour, wire and trampolines, juggling, dance, circus track activities, and more.

The new venture offers entertainment experiences that can help turn malls into more exciting destinations, and also fill the growing list of empty spaces that once held anchor tenants. Collaboration between the organization and retail spaces can help bring more consumers into the spaces, and help the retail spaces become more important to the families in their communities.

Is this the future of retail?

Group Activities and Discussion Questions:

  1. Poll students: How often do they go to a mall? What was their last experience at a mall?
  2. Show CREACTIVE in use at Club Med locations: https://www.cirquedusoleil.com/club-med-creactive
  3. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  4. Which strategy is being used for the new CREACTIVE performances? Why?
  5. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Cirque du Soleil in retail locations.
  6. Debrief the exercise.

Source: Cirque du Soleil is coming to shopping malls in 2019. (15 June 2018). Brandchannel.com

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Mayo + Ketchup = Mayochup!

Who likes mayonnaise? Who likes ketchup? Who combines the two? If you are like millions of other consumers in the U.S., then you like combining the two products into a single sauce. And, now, Heinz wants to bring the combined taste to you in one convenient bottle!

Yes, a new condiment that combines the two sauces is being developed for the U.S. market. Heinz recently taunted consumers, asking people to vote using Twitter if they want to see a new product – ‘mayochup’ – in grocery stores. Millions of people voted yes for the mash-up, and Heinz has said it will produce a new sauce.

There is a controversy about mayochup though. Claims that Heinz has invented a new condiment has been disputed. Other countries have long used the combined condiment in their cultures and foods. A combination of mayo-ketchup is popular across Latin America and in the Caribbean. However, there is no similar product available in the wider U.S. market. (A close cousin might be Fry Sauce, very popular in parts of the U.S. and around the world, where it is considered a staple condiment on the table.)

If you don’t like the mayochup name, Heinz is taking suggestions for alternative names. Maybe ‘ketchannaise’ will catch on instead!

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Show information about mayochup:
    1. Twitter: https://twitter.com/HeinzKetchup_US/status/984133260216332302
    2. Mayochup news video: https://youtu.be/C-ZYv-TDh3Y
  3. Which strategy is Heinz using for this product? Why?
  4. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market mayochup.
  5. Have each team determine the marketing mix (4Ps) to support their strategy choice.
  6. Debrief the exercise.

Source: Schmidt, S. (13 April, 2018). Heinz promotes its new ‘mayochup’ and sparks an international controversy. Washington Post.

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