Sustainable Line Extensions as a Blueprint for Brand Visibility: Learning from the NoLo Spirits Experience

Alba Ramírez Pagès () and Belén Derqui Zaragoza ()
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Alba Ramírez Pagès: University Ramon Llull
Belén Derqui Zaragoza: University Ramon Llull

A chapter in Advances in National Brand and Private Label Marketing, 2024, pp 85-92 from Springer

Abstract: Abstract Innovation is key for brands to stay competitive and meet changing consumer needs. To cater to the growing demand for healthier and more sustainable options, alcoholic beverage companies are innovating by reducing or eliminating alcohol content in their drinks. However, disruptive innovation in the food industry has been estimated to have a success rate of 2%. The concentration in retail and the rise of limited-assortment retailers create a vicious cycle: reduced distribution leads to lower sales forecasts and constrained marketing, exacerbating product failure rates. This limits both innovation introduction and consumer choice. The study examines the impact of alcoholic beverages’ No and Low line extensions on brand performance at the point of purchase. It focuses on the effects of successful line extensions on traditional brands in retail settings. The paper follows a descriptive observational analysis on 291 stores. The research shows that innovative products at the point-of-sale can give parent brands more shelf-space and visibility, making it easier for consumers to recognize them, increasing the chances of success. Further, the study reveals that retailers tend to favor innovative brands.

Keywords: Distruptive Innovation; NoLos; Sustainability; Retail; FMCG (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-69192-8_9

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DOI: 10.1007/978-3-031-69192-8_9

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