How Brands Get Their Claws Further in the Market

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A majority of brands have become extremely well known for what they produce. Dyson is known for vacuums, LEGO is known for toys, and White Claw is known for seltzers. However, for some brands, obtaining a large chunk of market share in a certain industry is not enough. One way companies address this is through different methods of growth. Depending on who they are attempting to reach with what kind of offering, there are different strategies available. One of these involves reaching current markets with a new offering. This is called offering expansion. Popular companies can present their current loyal consumers with a new product to get them further ingrained in what the brand represents. A good example of this is what Dyson did with the hair dryer. Dyson had a very loyal base of users purchasing their vacuums and cleaning supplies. In order to maximize on this loyalty, they released a hair dryer. This helped solidify the reputation they had been building that shows they are an innovative and reliable company. The hair dryer has gained a large amount of attention and has potentially even brought in more consumers. 

Source: https://www.wired.com/review/dyson-airwrap-review/

Other brands have seen success with offering expansions. LEGO has a strong reputation for building toys, and they branched out to create the LEGO movie, which was equally successful. One brand that has recently decided to branch out into a new product offering is White Claw. They announced their non-alcoholic seltzers a few months ago. They released them this past January, in an effort to capture sales from regular White Claw drinkers participating in "Dry January." 

The company found that most current consumers "want more flexible drinking options, with or without alcohol," according to a statement from Mark Anthony Brands Inc. President Phil Rosse. This option presents people with a way to moderate their alcohol consumption while still feeling involved in social settings where drinks are consumed. People could drink a non-alcoholic White Claw every few drinks in order to still enjoy the flavor but monitor their consumption. 

This new product could also be considered a diversification move. Where offering expansions offer a new product to existing markets, diversification offers a new product to new markets. This non-alcoholic seltzer could appeal to people who don't drink alcohol at all, so haven't been consumers of White Claw in the past. It presents them a great opportunity to try the drinks and now feel more involved in occasions where their peers are drinking. These new seltzers also claim to be hydrating and low-calorie. They want to become a drink not just for a fun night out, but for every occasion.

Source: https://www.foxbusiness.com/lifestyle/white-claw-launches-0-percent-alcohol-seltzers-depth-flavor-complexity

However, White Claw isn't just trying to bring a new non-alcoholic seltzer into coolers. They more recently launched their new seltzer that uses tequila instead of vodka. They found that most "tequila-enthusiasts" have been consuming the beverage in shot form, and wanted to give them a more flavorful and enjoyable option. This move could also be seen as offering expansion or diversification. If they target it as an alternative to their regular White Claws and try to generate sales from their current customers, it will be an offering expansion since it is a new offering for a current market. I believe they should do this in order to maximize on the customer loyalty they have been able to build over the years. However, they should also strategize on how to best utilize this new product to bring in new customers. Like mentioned before, this new seltzer is also targeted towards current tequila drinkers. This is a diversification strategy since it is offering a new product to new markets. This launch was very recent, so I am interested to see the feedback the new product gets and if it will live up to the White Claw reputation for flavor. 

Source: https://www.tastingtable.com/1547919/white-claw-tequila-soda-review/

As we can see, it is clear the White Claw is determined to be viewed as an innovative company and brand. They want consumers to know that they are constantly working on not only maintaining their fan-favorite drinks and their quality, but experimenting with new flavors and entire new product lines. Both the tequila seltzer and non-alcoholic option should help continue to strengthen the image they want to maintain. Do you think there are any other potential new product opportunities that White Claw should take advantage of? Or do you think they should simply stick with what they do best and only focus on vodka seltzers?

Sources:
https://brandmasteracademy.com/brand-extension-examples/
https://www.foxbusiness.com/lifestyle/white-claw-launches-0-percent-alcohol-seltzers-depth-flavor-complexity
https://www.prnewswire.com/news-releases/white-claw-tequila-smash-transforms-tequila-into-the-ultimate-social-beverage-with-authentic-mexican-tequila-and-real-juice-and-iconic-white-claw-flavors-302098767.html

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