A previous post about the Rose of Tralee and Newbridge jewelry got me thinking about brand extentions and how they can bring focus to your brand.
The most important word in differentiating your brand is focus and the most common reason for loss of focus is ill-considered brand extensions. For example:
Focused: Newbridge = cutlery
Unfocused: Newbridge = Cutlery + jewellry
Bad brand extensions are those that chase short term profits at the expense of long-term brand value whereas good brand extensions grow the value of the brand by reinforcing its focus. Avoca is a great example of an Irish brand that has focused all its product extentions on the brand. Kudos to them. On the other hand Stephen Pearse, who’s pottery I love, has gone into bed linen. Doesn’t make sense to me from a brand perspective.
How about these for clangers:
ReplyDeleteBurger Kings launch of beef scented fragrance called "Flame.
Or, how about when Bic launched Disposable underwear. What was that about?
The best was back in 1974 when Gerber, the baby food manufacturer launched pureed adult food in jars branded "Singles". Not only were adults not too keen on eating creamed scallops with wild rice but just think about what it said about the person who was spotted with "Singles " in their basket or larder.... " I live alone and eat my food from a jar".
I am interested in what you say about good brand extensions growing the value of a brand by reinforcing its focus.
ReplyDeleteOne brand that is certainly reinforcing (or should I say 'forcing') its focus into many areas outside its traditional core business is Tesco.
One can only wonder, where it will all stop? One day I am buying my (English) apples that always go off in 2 days, potatoes (English again) and washing powder from them, the next I am filling my tank with Tesco petrol, buying Tesco home insurance, Tesco pet insurance, Tesco communications solutions.
Focused brand extensions or quest for world domination? If we shoppers don't keep brands like these in check we will only have ourselves to blame when we are all living under a global, anti competitive fist of Tesco rule.
PS. I have no grudge against English apple and potato farmers but Irish supermarkets should be supporting the indigenous Irish farm produce which grows in abundance and supports local communities in Ireland.