The $1 Billion Brand Extension From Customers 'Misusing' NyQuil.

Ever wonder how brands discover hidden goldmines within their existing products? Read this.

Ever wonder how brands discover hidden goldmines within their existing products?

One of my favourite case studies I use to help brands scale by looking inside their business is P&G's journey from NyQuil to ZzzQuil, a masterclass in strategic brand positioning that every business owner needs to understand.

In the late 2000s at Procter & Gamble headquarters, NyQuil had been a household staple for decades, trusted by millions to help them power through cold and flu symptoms. By all measures, it was a successful product with a clear value proposition.

However, something interesting began to emerge in customer research.

P&G's team noticed a pattern that didn't quite fit the narrative. Customers were reaching for NyQuil not just during cold season, but year-round. They were using it not when they were congested or achy, but when they simply couldn't fall asleep. Even when they were perfectly healthy.

Most companies would have dismissed this as off-label use, maybe even tried to discourage it. P&G did something different.

The Million-Dollar Question

Instead of asking "Who is buying our product?" they asked a fundamentally different question: "What job are customers hiring our product to do?"

This shift in perspective, what Jeff Bezos famously described as being "worth 80 IQ points" when you change your reference frame from the conventional way of thinking to a fundamentally different angle, revealed something profound. Instead of viewing their product through the lens of what it was designed to do, they viewed it through the lens of what customers were actually hiring it to accomplish. The job wasn't "treat my cold symptoms." For a significant segment of customers, the job was "help me fall asleep reliably from a brand I trust."

This insight became the foundation for what would become one of the most successful brand extensions in recent history.

When Strategy Meets Execution

Understanding the job to be done was only the beginning. The real magic happened in how P&G translated this insight into action.

1. They reimagined the formula. Instead of cramming sleep aid into a cold medicine, they created a sleep-specific formula without unnecessary decongestants and pain relievers. Every ingredient served the sleep job.

2. They redesigned the experience. The packaging shifted from cold medicine aesthetics to sleep-focused design language. The messaging spoke directly to the sleep struggle, not cold symptoms.

3. They clarified the value proposition. ZzzQuil wasn't positioned as "NyQuil for sleep", it was positioned as a dedicated sleep solution that happened to come from the trusted NyQuil family.

What made this strategy so powerful was how it addressed the complete job customers were trying to get done:

1. The Functional Job: "Help me fall asleep quickly and reliably"

2. The Emotional Job: "Give me peace of mind that I'll wake up refreshed"

3. The Social Job: "Let me be my best self tomorrow by getting proper rest tonight"

By isolating these specific dimensions, P&G created a focused product that spoke directly to the sleep need. This clarity of purpose drove ZzzQuil's explosive growth and established it as a major player in the sleep aid category.

Looking for the Goldmines in Your Business

How many ZzzQuils are hiding in your current product line?

The most valuable innovation opportunities often hide in plain sight. They exist in the gap between what you think your product does and what customers are actually hiring your product to do.

Ask yourself:

• What unexpected ways are customers using your products?

• Where are customers cobbling together solutions that you could integrate?

• What jobs are customers hiring your competitors for that you could serve better?

Understanding these jobs can transform your positioning strategy, product roadmap, competitive landscape, and growth opportunities.

P.S. Have you signed up for my July Cohort? I am doing a monthly cohort with only 12 professionals to help them level up their brand & socials. Send me a message on Instagram if you want to hear more! Otherwise check out my Social Media Masterclass (here is 15% off).

xx,

Camille