RACV – The 4 keys to perfect brand extension

The RACV has provided us with a perfect example of a brand extension with a product that leverages all the good work they’ve done building a reputation based on simple products you can trust and a great service ethic. The product is RACV home cover. It must be good because so far I’ve only heard it promoted on radio and yet it stuck in my mind.

For $142 per annum you get eight call outs for emergencies in the home and they’ve picked a few goodies – the sort of things that sneak up on you, and strike when you are least prepared, like the heating not working, smelling gas or a gutter flooding the lounge room. Of course they’ve also included being locked out – so now the same organisation that you trust not to snigger at you when you lock your keys in the car can help you when the front door slams behind you as you rush out in your jim jams to get the post.


This is really smart marketing, showing a keen understanding of their brand image it adds to the RACV’s credibility and enhances its brand reputation.

Brand extension works best if :

(1) It builds upon your existing brand essence, value and personality;

(2) It has a creative connection to what you’ve done before in the use of language, imagery, colour;

(3) It appeals to the same audience that you have served before

(4) and meets a need of that audience

Understanding how far to push brands and remain relevant is an obsession with us, if you’d like to discuss your ideas for how far you can take your brand – why not give us a call.

Malcolm Harvey


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