Fosters Gold - the perils of premium line extensions

A few weeks ago I posted on Tropicana's not very premium Premium line extension.

Now Fosters beer are up to the same game with Fosters Gold: "4.8% Premium Lager". This is another example of how mainstream brands struggle to credibly do premium line extensions.

Fosters Gold is premium when seen from a Fosters' world-view. The bottles are more expensive and look more premium than the bog standard Fosters cans you find in supermarkets:

But this is looking at the brand extension "through the wrong end of the telescope". Turn the telescope round, look at it from a consumer view, and suddenly its not that premium at all:

- Pricing: Fosters Gold pricing is still well below what true premium beers like Heineken (who brew FOsters in the UK) and Peroni charge

- Product: 4.8% alcohol is more than Fosters at 4.0% but, again, still below true premium beers which are 5.0%

- Pack: looks very close to the normal Fosters in terms of graphics. Take away the word "Gold" and you would struggle to see it as a premium beer

- Personality: Fosters is just not a premium brand. The latest ad campaign features Brad and Dan, a couple of entertaining surf dudes giving out advice from their shack on the beach in Oz.

 

The problem of trying to be something you're not is shown by the Fosters Gold launch ad. Brad and Dan sell it as a "smart casual" beer. In other words, stuck in no man's land between mainstream beer (casual) and true premium (smart).

If you want a premium beer there are a host of great options, such as Peroni, Grolsch, San Miguel, Corona, Becks, Tiger etc. etc. etc. What value is Fosters Gold adding versus all these options?

I guess it could be a sort-of-premium-but-not-too-premium bottled beer? By selling 300ml bottles instead of the usual 330ml bottles, Fosters Gold can sell a 6-pack for £5.50 versus, for example, a 4-pack of Peroni for £5.11.

But if I'm in the mood for a premium beer, I'm not bothered about a pound here or there.

In conclusion, if you're looking at a premium extension of a mainstream brand, think carefully about whether its a smart idea. And to once more draw on the immortal words of pop group Wham: "If you're gonna do it, do it right". Add true value in a distinctive way to support a significant price premium.

Comments

[online purse stores]

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[Red Wing Black]

Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.

[dsquared pull]

Je suis le web depuis 1993 et un premier article dans L’Expansion qui m’avait scié le c**. J’ai mis le pied à l’étrier à des amis qui marchent bien maintenant, participé à la création de start-up en donnant de mon savoir en échange d’un salaire de misère, été asservi par entrepreneurs peu scrupuleux qui ont bien entamé ma motivation…

Dans tout cela, comment ne pas saturer et perdre le fil ?

[asit]

Upward line extensions for mainstream/VFM brands have rarely worked. Premium going Super premium has been more successful. Extending a value brand up the price positioning ladder is a long term strategic expedition straddling pretty much all aspects of the brand. Baltika beer- # 1 brand by volume in Russia had good success with Baltika Zolotya ( Gold). Same for a mass premium tobacco brand- YAVA which had a massively successful ( almost 10% share) upward extension YAVA GOLD. So can be done, but not easy!