Branding, Positioning and Differentiation

Why don't identical twins don't have identical firststrategy. 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 couldcheese companies putting out a line of pre-made
tell them apart, and as they grow up, they'recheese and cracker snacks. What Ritz did with Mini
distinctions become ever more pronounced. This isRitz 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 carrythe cracker.
over as the foundation for a common sensicalSo what do you do with a brand once you have
approach to branding-that different products need tocreated one?
be different brands with different names. However, theThose responsible for the brand defend the integrity of
only thing common about this sense is that it's all toothe brand and build on it. Just as Barbie dolls have for
commonly ignored in the hopes of cheating risk anddecades while Ninja Turtles and Cabbage Patch Dolls
the possibility of failure.came and went. The Barbie brand recognizes the
Overextended brands are like overstretched rubberniche it fills in the toy industry-dolls with interchangeable
bandsclothes. 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, Kraftway of doing this built-in to its product-changing clothing
and cheese were synonymous. It was a Corporatestyles. As the times change, so do Barbie & Ken's
Branding with a position competitors would have beenwardrobe. But that's just one way a brand remains
hard-pressed to erode had company brass beenstrong through the years. Survey any industry, and
content in their cheesiness. They weren't. Like manyyou'll find that long-term successful brands have at
companies blessed with strong brands, Kraft began tosome point had to reinvent themselves along the
think their brand name was invincible and that anyway-like automobile companies of today in the
product introduced under its banner would dominatebeginning stages of moving to alternative sources for
their markets simply because of its name. So, Kraftenergy. This is the same thing that successful
began offering jams, jellies and mayonnaise amongmagazines 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 extensionuniqueness and further differentiating themselves from
strategythe competition-not duplicating it.
Ohio-based Smucker's owns 35% of the jams andIf this is the case, why do companies try to extend a
jellies market. Kraft has 9%. Hellman's mayonnaise hasbrand?
42% of the mayo market. Kraft has 18%. The plan forBecause 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, Kraftextension are positive, but the initiative commonly
was relegated to bit player status in these otherbegins to lose ground and takes some of the overall
categories. Their strategy of trying to leverage a greatbrand strength with it.
brand name into being all things to all people resulted inWhy 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. Ifairline brands. Air New Zealand is about top-class
you had brothers and sisters, there may have beenservice 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 stickbrands operate successfully and independently of
with a person throughout their life, often regardless ofeach 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 companyLess really is best
that dabbles in cars. In America, it's a car companyA niche brand may not offer the sheer number
that dabbles in motorcycles. Despite the fact thepotential of a more generalized brand, but it does offer
company is equally prolific makers of both, the twosomething 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 arefor that product or service...and continue to do so
two different product categories. It proves thatbecause they believe they're getting quality only a
conquering multiple different categories with one brandspecialist can provide.
name doesn't work. Rather, companies who wish toA jack-of-all-trades really is master of none. So if you
expand into other product areas, or a first productare a master, or wish to become one, do it. Be it. Just
area for that matter, need to do so by using a strongnot to everyone.
brand identity as the foundation of its marketing