How Brands Diversify – Part 2: Brand Dilution – Podcast Ep. 35

How Brands Diversify – Part 2: Brand Dilution – Podcast Ep. 35

Brand Dilution

We’re back for part two of our series on brand diversification. In part one, we talked about the value of brand extensions and discussed a few off-the-wall extensions from brands like Tesla and KFC.

This episode, we’re deep diving into the concept of brand dilution.

Brand dilution occurs when brands push a bit too far when introducing a new product or category.

Dilution occurs when the extension unintentionally disrupts the original perception of a brand.


Brand Dilution Examples

DC/WB with Batman

Used too many times, and I think we’re getting fatigue. How many movies, video games, and animation series have we seen in the last 10 years? 

  • Chasing the success of Christopher Nolan’s trilogy. (I only liked Begins and TDK.)
  • Batfleck (he’s back!)
  • Casting of new Batman films (not a fan so far)
  • Placing Batman in three films 
  • Animation series produced (I loved the Batman Animated)
  • Games – over 40+ video games made!

Star Wars

[In 2019]: “I just think that we might’ve put a little bit too much in the marketplace too fast.”

Disney CEO, Bob Iger, told the New York Times

Sony – Playstation

What is Sony known for? Most would answer Playstation or video game consoles.

Sony has a long history of being an electronics company, but since entering the video game market, they’ve transformed their brand. Is this an example of a successful brand extension or a brand dilution?


Sony Playstation 5

Other Brands that had success at diversification (brand extension) and failure (brand dilution) that we discuss:

  1. Amazon Fire Phone
  2. Harley Davidson Perfume
  3. Cadbury’s Instant Potatoes
  4. Crystal Pepsi
  5. Virgin Water Filtration System
  6. Dr Pepper BBQ Sauce
  7. Coca-Cola Clothing
  8. Windows Phone

Thank you for listening, and you can check out all podcast episodes at https://nerdbrandagency.com/podcast.

Keep your NerdBrand Strong!

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I'm the Co-founder and CEO at NerdBrand. I've spent over 12 years in digital advertising providing strategic direction for businesses to build better websites, brands, and messaging, with an eye for improving online presences and laying a foundation for future growth.