| Why don't identical twins don't have identical first | | | | strategy. Either that or create new product lines that |
| names? Though they may look the same, they're not. | | | | somehow relate to your old product line, such as |
| Just ask their parents. Even as newborns, they could | | | | cheese companies putting out a line of pre-made |
| tell them apart, and as they grow up, they're | | | | cheese and cracker snacks. What Ritz did with Mini |
| distinctions become ever more pronounced. This is | | | | Ritz sandwiches, Kraft could have easily done by |
| why we don't give twin babies the same first names. | | | | focusing the product's marketing slant on the cheese in |
| In the business world, this idea would seem to carry | | | | the cracker. |
| over as the foundation for a common sensical | | | | So what do you do with a brand once you have |
| approach to branding-that different products need to | | | | created one? |
| be different brands with different names. However, the | | | | Those responsible for the brand defend the integrity of |
| only thing common about this sense is that it's all too | | | | the brand and build on it. Just as Barbie dolls have for |
| commonly ignored in the hopes of cheating risk and | | | | decades while Ninja Turtles and Cabbage Patch Dolls |
| the possibility of failure. | | | | came and went. The Barbie brand recognizes the |
| Overextended brands are like overstretched rubber | | | | niche it fills in the toy industry-dolls with interchangeable |
| bands | | | | clothes. Nothing else. Of course, refreshing a brand is |
| Everyone's heard of a company called Kraft. "Hey, | | | | completely necessary over its lifecycle. Barbie has a |
| those are the cheese people." Yep. For years, Kraft | | | | way of doing this built-in to its product-changing clothing |
| and cheese were synonymous. It was a Corporate | | | | styles. As the times change, so do Barbie & Ken's |
| Branding with a position competitors would have been | | | | wardrobe. But that's just one way a brand remains |
| hard-pressed to erode had company brass been | | | | strong through the years. Survey any industry, and |
| content in their cheesiness. They weren't. Like many | | | | you'll find that long-term successful brands have at |
| companies blessed with strong brands, Kraft began to | | | | some point had to reinvent themselves along the |
| think their brand name was invincible and that any | | | | way-like automobile companies of today in the |
| product introduced under its banner would dominate | | | | beginning stages of moving to alternative sources for |
| their markets simply because of its name. So, Kraft | | | | energy. This is the same thing that successful |
| began offering jams, jellies and mayonnaise among | | | | magazines do. They carve out a niche, become the |
| other things. | | | | leader in it and then defend it by banking on their |
| The numerical truth about Kraft's brand extension | | | | uniqueness and further differentiating themselves from |
| strategy | | | | the competition-not duplicating it. |
| Ohio-based Smucker's owns 35% of the jams and | | | | If this is the case, why do companies try to extend a |
| jellies market. Kraft has 9%. Hellman's mayonnaise has | | | | brand? |
| 42% of the mayo market. Kraft has 18%. The plan for | | | | Because launching a completely new brand is very |
| equal domination didn't quite work out as planned. | | | | risky and expensive. Often times, initial results of brand |
| Despite its dominance in the cheese market, Kraft | | | | extension are positive, but the initiative commonly |
| was relegated to bit player status in these other | | | | begins to lose ground and takes some of the overall |
| categories. Their strategy of trying to leverage a great | | | | brand strength with it. |
| brand name into being all things to all people resulted in | | | | Why creating a new brand is better for business than |
| few real winning products. | | | | extending one. |
| Why doesn't being all things to all people work? | | | | In New Zealand, there is one Airline Company, but two |
| In your family, you may have been the smart one. If | | | | airline brands. Air New Zealand is about top-class |
| you had brothers and sisters, there may have been | | | | service with all the frills. Freedom Air, on the other |
| the "social" one, the "rebellious" one or the "athletic" | | | | hand, is the airline for the budget conscious. The two |
| one, too. And invariably, those attributes seem to stick | | | | brands operate successfully and independently of |
| with a person throughout their life, often regardless of | | | | each other, which allows the parent company to serve |
| whether they change. | | | | two distinctly different air travel markets. |
| In Japan, Honda is known as a motorcycle company | | | | Less really is best |
| that dabbles in cars. In America, it's a car company | | | | A niche brand may not offer the sheer number |
| that dabbles in motorcycles. Despite the fact the | | | | potential of a more generalized brand, but it does offer |
| company is equally prolific makers of both, the two | | | | something a lot better-sustainability. Over the long term, |
| different markets have Honda pegged as either/or. | | | | as your brand becomes synonymous with a specific |
| One name, one product. Burned-in and branded for life. | | | | kind of product or service, more people will turn to you |
| This is because motorcycles and motor vehicles are | | | | for that product or service...and continue to do so |
| two different product categories. It proves that | | | | because they believe they're getting quality only a |
| conquering multiple different categories with one brand | | | | specialist can provide. |
| name doesn't work. Rather, companies who wish to | | | | A jack-of-all-trades really is master of none. So if you |
| expand into other product areas, or a first product | | | | are a master, or wish to become one, do it. Be it. Just |
| area for that matter, need to do so by using a strong | | | | not to everyone. |
| brand identity as the foundation of its marketing | | | | |