How expanding too much can snap your brand’s success.

Most of you reading this probably own something from Apple.

It could be an iPhone, iPad, AirPods, or for you avid AR fans out there, possibly the coveted Vision Pro.

Whatever the product may be, there’s likely a common underlying reason for using a gadget from Apple.

And what’s the main rationale?

Well, Apple’s a champion in the tech industry.

More specifically, Apple has established itself as the ultimate go-to brand for everyday tech and lifestyle, seamlessly blending innovation with functionality.

Which is why whenever Apple releases a new tech product, its loyal users trust that it’s made with a lot of care and backed by extensive research and quality.

Now, what if one day, Apple announces that it’s venturing into the fast food business?

What would your reaction be?

Probably not as keen, right?

You might even start to doubt Apple’s credibility.

After all, you’ve never even heard Apple talking about a burger before — forget trying to rival McDonald’s!

That, my dear readers, is an example of a brand — that like thousands of others out there today — has stretched itself too far.

But how does a marketer know if their brand has indeed gone past its limits?

That’s where the Rubber Band theory comes in.

The Rubber Band Theory

Ever played with a rubber band before?

You know the snap back when it’s stretched a little too far for comfort?

That’s essentially where the inspiration from the Rubber Band theory comes from.

It explains that just as a rubber band can stretch to a certain point before it snaps or loses its shape, a brand can only extend so far from its core identity before it loses its essence and possibly its audience.

Let’s break down the Rubber Band theory further into its three main aspects:

The Core Identity (or the Default Shape)

Every brand always starts with a core identity.

Apple is known for sleek and modern tech gadgets. Nike is famous for its superior athletic footwear. Starbucks is world-renowned for making drinking coffee a lifestyle.

This core identity is what initially attracts customers, and is what must be respected and not stray away from, even as a brand expands.

The Stretching Point

Every brand aspires to grow and be much bigger than they currently are.

And as they expand, they’re always on the lookout for new outlets of opportunities to venture into.

However, the Rubber Band theory warns that there is always a limit to expansion.

Not in terms of size, but rather — the extent to which it may possibly lose its identity.

If a brand goes too far, it may risk losing its brand coherence.

The Rebound

This represents the consequence of stretching too far.

Just like a rubber band, a brand that goes too far may snap back — or in the worst case, break entirely.

This could result in a sudden drop in customer engagement, a likely decline in sales, or even scarier, a permanent negative shift in brand image.

In essence, the Rubber Band Theory serves as a cautionary tale, encouraging brands to be alert and know when they’re approaching the limits of their elasticity.

Diversify too quickly, and your brand will dilute itself, and customers will no longer recognize the original uniqueness that you brought to the table.

Fortunately, there are some clear signs that all brands can look out for in case they’re concerned about overstretching themselves.

Here are the three main ones:

Sign #1: Messaging Is Becoming Inconsistent

Take a look at all your marketing collaterals.

Yes, all. Including every recent social media piece you put out.

Now, go ahead and check for one thing: is everything aligned?

Not just the copies, mind you — I’m talking brand colors, tone of voice, everything.

You see, when a brand starts to venture into new areas, they have a tendency to cater a little too much to the new target audience.

What happens is that subconsciously, they start to deviate from their original way of communicating and presenting themselves, causing huge confusion to both current and new audiences.

A great example of this is the 2009 epic failure of the Tropicana repackaging (shown above).

The brand, assuming that customers would prefer a new modern packaging, decided to do a massive overhaul and change up their entire look.

However, that only resulted in sheer confusion and public backlash, with many customers stating that it completely ruined the original, humble, brand image for them.

No matter how many new products your brand launches or new markets it taps into, always check that the brand image is aligned.

The moment it feels like things aren’t matching is when your brand is heading to the dreaded Stretching Point — and that won’t end well.

Sign #2: Customers Are Getting Confused

If your customer is looking at your new products and frowning, that’s a sure sign that your brand has gone too far.

Confused customers are another early warning signal that your brand is diversifying too quickly and more importantly, the new image that you’re presenting doesn’t quite make sense.

And that can be alarming, especially since a brand should always stay connected to its audience to keep them coming back for more.

H&M’s 2023 overambitious business venture makes a great case for this.

In a bid to salvage its declining sales, the iconic clothing chain decided to go into the home decoration industry.

Granted, while the products were kept affordable to customers (similar to their clothing), it mostly resulted in mixed reactions from the public, who did not quite understand what was the uniqueness behind this new venture.

So how does one check for negative customer reactions?

Simple — conduct regular surveys and focus group interviews after every major launch.

This way, you’ll be getting the latest and most honest reviews of your new venture, and then you can decide if it was a good business move or not.

Sign #3: Wavering Brand Loyalty

Remember when GAP decided to change its logo back in 2010?

That was not a great business move — not by a mile.

Not only were customers extremely confused at the seemingly random business move, but it ultimately resulted in a shift into a negative brand image — one that cost the business millions of dollars in lost sales since then.

Why did customers feel that way?

Well, if you take a look at the image above, you probably can see why.

The old logo represented classic and reliable — a clothing brand that people can go to for everyday, quality fabrics.

The new logo, however, seems like a Microsoft ripoff — trying too much to seem modern, but failing spectacularly.

You see, brand loyalty only extends to the point where it makes sense to the customer.

The moment the core values don’t seem aligned, customers are more than willing to walk off and hop to another, better brand.

The easiest tell-tale sign for wavering brand loyalty is consistently declining sales on the brand’s side, contrasted with positive growth on the rivaling brands’ side.

But is this too late to turn things around?

Is It Possible To Reverse An Overstretched Brand?

Of course!

It’s definitely possible to retrace one’s steps and turn around the effects of a brand that has stretched itself a little too far.

To reverse the consequences, you’ll need to refocus on your core identity by going back to basics.

This means that you’ll need to streamline your products (say goodbye to new ones, at least for now), reinforce consistent messaging, and engage with your loyal customer base.

And in terms of the business side of things, you’ll need to cut back on ventures that have clearly diluted your brand, and in turn, reinvest in the products or services that have proven to work.

Lastly, don’t forget to communicate every move to your customers.

Make sure they know what you’re doing every step of the way so that they can return to being your loyal fans once again.

Conclusion

Every brand wishes to grow.

But as a marketer, you’ll need to practice prudence with ambition.

Acknowledge the products and marketing that have gotten your brand to where it is today, and never lose this essence in your bid to grow bigger.