Brand
WD-40 is an American company that manufactures and distributes a multifunctional lubricant. The company focuses on providing high-quality products for various working environments (WD-40, n.d.). Therefore, the current target market of WD-40 includes factories, workshops and private households. The company’s main product, the aerosol product, is mainly used to remove rust and prevent various mechanisms from sticking. The composition of the multifunctional lubricant WD-40 is not publicly available because it is the company’s trade secret. In general, WD-40 is a company that manufactures an aerosol lubricant designed for various domestic purposes.
Extension idea
The idea of extending the brand involves the development and distribution of a new product with a focus on the healthcare sector. In this aspect, the best option for a new product is the creation of products for the treatment of joints. This extension idea involves advertising and distributing the new product in various settings typical for the company’s potential customers. For example, the distribution of WD-40 for joint care will be aimed mainly at environments with a high risk of injuries among workers. The new product is potentially valuable for people in working settings vulnerable to work-related joint injuries and diseases. Considering the widespread use of WD-40 in the household, the idea of a brand extension would also apply to individual consumers.
A significant component of brand extension involves expanding the company into new market areas that relate to the initial customers of WD-40 products. In this regard, one basis for brand extension is the trend towards joint problems among consumer groups of the company’s other products. In turn, such a trend makes WD-40 Joint care potentially beneficial for distribution among current customer groups. Furthermore, introducing a new type of product offers the company an opportunity to expand its global market reach if it is successfully launched in areas of the market it does not currently target (Huo, 2021). In general, extending the brand with the introduction of WD-40 Joint care provides a range of advantages, including utilizing the company’s current success and mission and expanding into new market areas.
Rationale / Justification or Need for the New Idea
The rationale for extending the WD-40 brand into the healthcare sector is primarily the application area of the company’s current products. In this aspect, an essential factor is that the scope of application of the WD-40 multifunctional lubricant includes various domestic needs. Furthermore, WD-40 defines its mission as providing unique, high-quality solutions for multiple applications in different environments, including workshops, factories, and homes (WD-40, n.d.). Since injuries often accompany work in various settings that address technical issues, extension into the context of joint care is a possible way to fulfill the organization’s mission better. The utilization of WD-40 Joint care can, therefore, occur under identical conditions as in the case of the multifunctional lubricant.
Moreover, public opinion regarding the use of WD-40 multifunctional lubricants for medical purposes is an additional factor in developing joint care products. In this aspect, the most pronounced view is the positive effect of using aerosol for arthritis treatment. However, this opinion is incorrect, and WD-40 refutes any information regarding using this product to treat joints. Extending the brand by incorporating products developed for healthcare, in this case, will avoid the spread of misinformation regarding the multifunctional lubricant. At the same time, public stereotypes regarding using the company’s products to treat arthritis can create an additional marketing effect when introducing a new product for healthcare purposes. Thus, extending the brand by introducing a new product for joint care coincides with the company’s mission and features additional factors that can positively influence sales.
Target Market
The WD-40 Joint care extension target market includes several customer groups and applies to different environments. This product is primarily intended for customers who are consumers of WD-40 multifunctional lubricant. Thus, the primary target market for brand extension is focused on different work settings and individual households. However, the brand extension allows the company to expand the range of target market segments. Thus, WD-40 Joint Care is a product for distribution to several organizations that are not the company’s primary customers. It primarily includes various healthcare institutions where individuals receive medical. The company needs to assess market segments and determine which organizations represent the most optimal settings for launching new product sales (Ferrell, 2021). In addition, new market segments may include organizations providing care for injuries and conditions. This category includes schools, nursing homes, and sports organizations. In general, the target market for WD-40 Joint care relates to a wide range of customers, including the company’s original client base and several new distribution areas.
Marketing / Launch Strategy
The WD-40 Joint care launch strategy includes analyzing the most rational ways to present the product and developing pricing and channelling strategies. When planning a new product introduction for a brand extension, the first task is identifying the most promising customer group (Zeewy, 2021). It will enable the development of the right marketing plan and ensure a high level of product launch sales. In the case of WD-40 Joint care, the rational marketing strategy is to advertise and distribute the new product to a section of current customers, including factory and workshop employees. The high demand for WD-40, combined with the trend of joint health problems, will allow the company to make the most successful brand extension in the case of a healthcare product.
Regarding selecting a pricing strategy, competitive pricing is the optimal option. Given that the healthcare sector is new to the company, an essential aspect of product pricing is focusing on potential competitors’ pricing policies (Ferrell et al., 2021). However, considering the reputation of WD-40 in the current market, it is possible to use a value-based strategy when targeting the company’s existing customer groups. Thus, the choice of pricing policy depends on the launch policy regarding the customer group. When targeting new market segments for the company, pricing should consider the policies of potential competitors.
The channelling strategy for a new product includes a combination of the product’s native distribution channels and the use of new distributors. Existing supply channels involving distributors of different sizes can serve as the basis for new product distribution. In this case, distribution of WD-40 Joint care can occur primarily through large retail chains acting as distributors of the company’s products. Given the focus of the new product on the healthcare sector, a potentially important aspect of the channelling strategy is to target distributors, including pharmacy networks. This expansion of distribution channels will allow the company to engage different consumer groups and expand its influence in the global marketplace (Huo, 2021). Overall, the optimal option for developing a rechanneling strategy to extend the WD-40 brand is to focus on established distribution channels.
Ethical Considerations
Ethical considerations address several essential aspects when extending a brand and introducing a new product, including the company’s mission statement. In this case, WD-40’s mission statement refers to providing quality products for domestic purposes in various work settings (WD-40, n.d.). The basic premise of this statement is similar to the WD-40 Joint care as it relates to providing a wide range of consumers with the company’s product. However, the opportunities to distribute the new product to a broader range of customers create the need to modify or extend the current mission statement. For instance, it is possible to add healthcare institutions to the recent mission statement, indicating the possibility of using the product for healthcare purposes. Furthermore, the modernization of the company’s mission statement could focus on ensuring comfortable and safe working conditions in different environments without specifying any specific objectives or settings. Therefore, modifying the mission statement is crucial in establishing ethical considerations in extending the WD-40 brand.
Regarding customer policy, the brand’s extension needs to focus on the highest ethical level of customer care. The potential customer should receive relevant information concerning the application and characteristics of WD-40 Joint care. To ensure customer awareness, the company should conduct a series of studies and tests to obtain the most credible information. Furthermore, these tests should adhere to ethical product testing standards and avoid direct human or animal involvement to prevent reputational damage. By providing consumers with relevant data, the company ensures the appropriate level of customer loyalty and trust (Tiffany, 2021). Overall, ethical considerations in the context of customer policy are critical since they directly impact brand reputation and revenues.
Moreover, an essential aspect of ethical considerations is to accompany brand extension with socially responsible policies. Considering the focus of the new WD-40 product on healthcare, it is potentially beneficial to the ethical image of the company to provide healthcare organizations with the new product. Adopting policies that demonstrate the company’s social responsibility will enable a more rational presentation of the new product to consumers.
References
About Wd-40® brand. (n.d.). WD-40. Web.
Ferrell, O. C., Hartline, M., Hochstein, B. W. (2021). Marketing strategy. Cengage Learning.
Huo, J. (2021). Advances in theory and practice in store brand operations. Springer.
Tiffany, J. (2021). Marketing strategy overcome: Common pitfalls and create effective marketing. Kogan Page
Zeewy, O. (2021). Ready, launch, brand: The lean marketing guide for startups. Taylor & Francis.