NEW YORK When a consumer thinks of a megabrand, he or she might think of Coke, Budweiser or Cheerios. These are all category leaders and are certainly “mega” in terms of their global recognition and sales figures. But looking beyond sheer size, these products are actually quite limited in their scope: soft drinks, beer and cereal, respectively.

The word “megabrands” has a slightly different meaning for consumer goods companies and marketers: it relates to taking a power brand and extending its equity across related product categories to drive growth and efficiencies.



For example, Crest had traditionally been known as a leading brand of toothpaste. But a few years ago, parent company P&G set out to take Crest’s familiarity with consumers and extend the reach of Crest-branded products relating to oral care: toothbrushes, whitening kits and oral rinses.

In a period when consumers and companies alike are spending their money more carefully, megabranding might seem like a no-brainer. 

Take a well-known brand and attach that name to other similar products. It certainly seems easier--and cheaper--than launching an entirely new brand. But to embark on a megabranding strategy is far more complex, and marketers must take a number of factors into account or they ultimately risk damaging the brand.


Nielsen Business Media