Brands that possess strong positive associations with a product category often find themselves in a favourable position when it comes to extending that brand into new markets and reach new audiences. Take the example of Nestlé’s Aero brand – notoriously associated as a unique ‘bubbly’ chocolate bar – which has more recently ventured into the hot chocolate industry by exercising Ansoff’s fourth strategy, ‘related diversification’. Related diversification involves the production of a new category of goods that complements an existing line or current business activity, in order to penetrate a new but related market
The Aero brand was born into the UK with the launch of Mint Aero chocolate in 1935, before growing internationally with an increased range of flavours, such as milk chocolate, white chocolate and strawberry, in various regions at various points in time – and later in the newer form of ‘Aero Bubbles’. By 2009, value sales of Aero reached £97m in the UK alone, making it the sixth biggest chocolate bar brand behind Cadbury Dairy Milk, Galaxy, Mars, Kit Kat and Flake, according to Mintel.