Some brands have done it so well that over the past years they have even become synonymous with their particular product category; for example, when consumers think of tissues, ketchup or instant coffee, they'll conjure images of Kleenex, Heinz and Nescafe. A well-crafted positioning statement is an essential part of a complete brand messaging system, but some brands have lost focus over time while still others have failed to exploit opportunities to branch out into new categories. If a brand tries to become everything—or even always the same thing—to everyone, it starts losing focus and projects a confusing scenario. It is both natural and important for companies that have successfully built up equity in a brand to constantly consider ways to leverage that asset. As companies look for ways to develop growth opportunities, they often find it is prudent to build on top of what they already have rather than reinventing the wheel every time. This means that companies have a responsibility to consider ways to extend their brands in new directions. This can go horribly wrong and some companies end up launching trivial line extensions that cannibalize the core business and dilute what the brand stands for. However, the best ones succeed by creating a growth path that stays true to a core idea, and this allows them to evolve. Take Apple as a benchmark. At the core of Apple’s brand is great innovation, beautiful design and an ability to bring warmth and passion to those who may be completely averse to technical gadgetry but need it nonetheless to survive in today’s world. Last year, Apple announced a less reported but nonetheless brilliant decision to change its corporate name from Apple Computers to simply Apple, Inc. As a brand that represents innovation, Apple can list the desktop computer, graphical operating system, and mouse in its history as both computer hardware and software manufacturer; yet, Apple needed to move beyond computers to continue that innovation. So Apple now is a manufacturer of digital media solutions—MP3 players, touch-screen mobile phones, wireless routers, media storage and streaming devices, an online store and download service, software and computers. Apple may have lacked the credibility to go straight from a computer to a mobile phone (iPhone). However, by moving into music players (iPod) first, they created new brand associations that focus on portability and music, which made the iPhone a more achievable stretch. Several key elements link the Apple brand with each extension, and this creates a “virtuous circle” where the extension benefits from the brand, and the brand benefits from the extension. Its incredible technical executions, coolness factor, user-friendly designs and sleek aesthetic makes it irresistible. Other brands that have succeeded without losing their core brand attributes: “Real beauty” In a world of hype and stereotypes, Dove provides a refreshing alternative for women who recognize that beauty is more than skin deep. It is about real women, women with curves. Dove first launched in the US during the 1950’s and has now extended successfully into shower, bath, deodorant, etc. products—all tied together with the same positioning about real beauty, not fake, and the truth regarding 1/4 moisturizing cream. “Success” Axe’s bath and shower products promise confidence and sexiness to male teenagers. The brand successfully extended to shower gel and body spray and could stretch into other categories such as hair gel and aftershave if each product is committed to delivering the “Axe effect.” “Gentle care” Nivea has grown from one signature product to over 300, encompassing fourteen product categories. But all of its products appeal to an intellectual concept of beauty as “more than one ideal.” By maintaining a rock solid consistency in its brand messaging, verbally and visually, Nivea has made each new product add to the success of the whole. “Human technology” Even without giving distinctive names to its phones, Nokia products have personality. How can this work? Nokia focuses on its mother brand instead of sub-brands and emphasizes its commitment to high quality and “very human technology” regardless of the particular product or service. “The strongest there is” Fisherman’s Friend has been calling its mints and lozenges the “strongest there is” for more than a century. When it wanted to expand its product line, it did not back off from this bold position (as Listerine did), nor did it attempt to appeal to a new audience with something like Fisherman’s Friend for Tots. Its newest products are strong mint and menthol-flavored chewing gums, which are consistent with the brand’s quietly playful machismo stance. “Highstreet fashion” Since the first Zara store opened in Spain 1975, Inditex has been growing steadily and is quickly becoming a global leader in fashion. Wisely, the company has introduced different brands to serve different targets rather than extending the initial Zara brand. Today, the Inditex group ranges from the sophisticated urban Massimo Dutti brand to the street fashions of Bershka, to Oysho lingerie, and to the casual Pull & Bear brand. “Style” The LG Prada, or the Prada phone by LG—as it is being marketed—marks the true union of style and functionality. Its designers left the LG brand mark for a more fashionably acceptable Prada, not just for its brand association and recall value, but also to maintain the minimalist look of the LG Prada. And of course, the brand flops. Some examples of brands that are losing their core ideals: Listerine For years, Listerine billed its mouthwash as “the taste you hate, twice a day”—along with the idea that it if it didn’t taste like disinfectant, it wouldn’t be working. But in 2006, the company launched Agent Cool Blue, a mouth rinse for kids, meant to make teeth brushing more fun, as well as a complete line extension of good tasting mouthwash. “Now there’s a Listerine for everyone,” claims the company. Unfortunately, it is hard to deliver on a promise to be everything to everyone. Pizza Hut In an age where consumer preferences have shifted towards healthier alternatives, Pizza Hut has held onto its restaurant format and outdated menu. Now, it not only offers pasta, but chicken wings, cheese sticks, and hot mini fried apple pies in some countries—a loss of focus and a dangerous strategy. At this point, Pizza Hut should focus on pizza and only pizza, redesigning the ingredients to offer a healthier and more nutritious product. Marlboro If Marlboro is about being a tough cowboy out on the range, how do Marlboro Menthol and Marlboro Ultra Light cigarettes make any sense? In an effort to appeal to a greater number of audiences, Marlboro has lost sight of its product’s original distinction. Diet Pepsi Max Over the years, Pepsi has tried extending its line with everything from Pepsi One to Pepsi Blue. Diet Pepsi Max launched in the United States in 2007 in response to Coca-Cola’s male-focused Coke Zero—in spite of the fact that Pepsi’s product extensions have not shown any boost the company’s overall strength. And it appears many men simply are not very interested in diet drinks. Volkswagen Phaeton Volkswagen’s Phaeton hit the road in 2002, but despite good industry reviews, consumers have largely stayed away from the pricey sedan with the “People’s Car” badge, opting instead for competitors like Audi’s A8 and BMW’s 7-series. A Volkswagen for US$ 90,000? The concept is too far outside what consumers are ready to embrace. In this fast changing world with new products hitting the market every day offering promises of health, beauty, greater efficiency, and so on, consumers are becoming more and more confused, sometimes losing sight of what they really want, or really need. The truth is most products will come and go, failing to live up to their promises. This is the time for marketers to stop and think. To take note. To work out strategies carefully by being true to a core idea but advancing and adjusting to changing times. There are no limits. Brands must look into the future but maintain focus on the here and now. |