Brand Extensions

Consistency is not always the name of the game, Virgin being a prime example. Although the Vigrin brand did not make it into the top 100 of Interbrand's list, it does deserve a special mention. It is one of the most well known brands operating within various industries, and while its in-consistency might send other brand enthusiasts reeling, it's one of the few that has been able to successfully pull off brand extensions, which are different from their core. 

Recently Virgin announced the global expansion of their Virgin Hotels which they are developing for the high-end traveler. These 4 star hotels will be targeted for the luxury business traveler and will be currently located in North America. More details about the project can be found in Silverstein's article Branson's next move.

The reason for Virgin's success, while I touched on it before, is got to do with their positioning and overall image, which is not based on functionality, but rather emotions such as fun, excitement, daring etc.. which according to Branson appeal to their chosen consumer segment or as they are termed the 'creative class' who can relate to the values of the company....so in other words who does not like to have fun? therefore allowing Virgin to expand into any segment where this is probable. 

Speaking of brand extensions, RIM have decided to enter into the world of tablet computers with a launch of their very own version, into an already crowded market. Is this a bid by RIM to support its brand by creating product extensions for wider appeal? Most likely the tablet would be purchased by existing Blackberry loyalists, and by hooking their customers on they would be following a similar path to Apple; and their creation of a fan base. This is quite a stretch for them, as most of their other competitors are technological companies who have previous experience in IT, unlike RIM for whom this would be a first, but while it is a stretch, playing devil's advocate one can argue that RIM stands for efficiency and effectiveness combined with innovation of mobile technology which is exactly what they will be achieving through the tablet. More information can be found in the article RIM readies answer to i-Pad (why is everything compared to the i-Pad??? a better differentiation is needed). 

Starbucks on the other hand is committed to protecting their trademark which involves suing other brands who copy their distinctive style, color and design of the logo, even if their small cafés who claim innocence. Although there is more to a brand than just its logo, like for Starbucks, its quality coffee, atmosphere etc. they are compelled to protect their rights. Always a tricky decision...what would you do?

Samsung as part of their promotion of the Galaxy Tab, have launched a YouTube video depicting the features of the product ... makes me wonder why couldn't Amazon do the same for the Kindle rather than changing their distribution strategy? 

On a final note Ford have released an app on the iPad to promote the 2011 Fiesta, which highlights the vehicle's features, connectivity and accessories. This is a rather dismal attempt by Ford, as the potential of social media is astounding, so by using it as as an online catalog is only a drop in the ocean.....when the limit is only your imagination.   

Re-branding...New logos and taglines do NOT count!

Re-branding seems to be the latest buzz word in the branding world, with companies such as Kodak, PwC, & Airbus all trying to re-vitalize their brands either through new logos, positioning or targeting new markets.

New Kodak logo

Let's start with Kodak who have decided to do all  the three above. In an effort to modernize the brand and promote their new camera feature (the share button-for photo sharing), Kodak has decided to connect with their chosen segment of young, social media savvy urban consumers, with their new tagline of 'So Kodak' and a planned a multimedia campaign (or an IMC to be specific) consisting of musicians: Drake, Pit Bull & Trey Songz in online, print & TV spots in an effort to build street cred. Quite a commendable effort to re-engage the consumer, and while the campaign is still to be released, a couple of questions pop into mind, namely:

1) Why are urban consumers their segment of choice? According to Kodak on their company blog they 'set trends for the larger population in areas of fashion, entertainment and music', aka they are the "Innovators" but you can easily argue that today almost everyone is socially connected, so wouldn't a more mass appeal be more strategic especially as Kodak's positioning has always been innovation for everyone; unless this segment is the most profitable for them.....?

2) Is street cred really that important for a brand such as Kodak?  Kodak to me is a family brand, a brand for everyone, to share, enjoy and record those 'Kodak moments', so by street cred do they really mean word of mouth?? and are urban channels the best way to accomplish this?
  
Which brings me to...

3) What's with their new tagline of 'So Kodak'?? To be honest I'm not entirely sure what the new positioning is trying to convey....was it adopted because it has already been used in songs by artists 100 Deep Phly Boyz and Blok- Breeze, leading to the belief that it might appeal to their chosen segment? I personally preferred the 'Kodak moment', and would have preferred re-launching a new strategy with the same tagline, which not only is historical in its own right but also conveys the brand's heritage.

 And finally the big one...

4) If they hope to target social - media savvy consumers...WHY IS SOCIAL MEDIA NOT A #1 
    PRIORITY WITHIN THEIR CAMPAIGN????


Although to be fair, Kodak in all sincerity is trying to re-brand themselves as young, hip and still innovative which is backed by their new smart printing system PYNK, which is a new retail photo kiosk that  can create a fully assembled photo collage, a definite plus for the innovation! Check out Barry Silverstein's article Kodak touts innovations at Photokina

New PwC logo

Moving on next on the re-branding list is Pwc, who have decided to modernize their brand by changing the logo and shortening their company name to PwC, as its'commonly known as, for promotional purposes, which is great as they aim to appeal to their clients by sharing common ground. They launched an infomercial of sorts on YouTube about what their new brand is all about ... modernity, change and value. The video, which can be watched here, talks about how their customers are changing and how they are changing too and that change is good for everyone....too much of change? Well if you listen to the video and you're anything like me, you will not want to hear the words 'change' & 'value' again!! I know repeating a point usually gets the idea through...but there is a limit.....anyways, their overall message is that as part of their re-branding for modernity they intend to listen to their consumers, asses their needs and provide value in order to surprise and maybe delight their customers....which is all fantastic of course, but I'm a little wary as to if they plan on doing that now....WHAT WERE THEY DOING BEFORE??? 

Next on the list is Airbus which has released a new modern logo, which involves changing the font type to a more striking cutting sharper one, while keeping the iconic ball and color the same....the new logo looks great (while not very different), but I have just one thing to say...A NEW LOGO DOES NOT CONSTITUTE AS  RE-BRANDING!!! Airbus press release states that new logo is an effort by the company to rebrand itself but to what?? There has been no major change in the company's positioning or operational culture so to all effects the brand is still the same.

New logo                                           Old Logo

When a brand needs a boost it's always easy to say let's re-brand without fully appreciating the finer details of what its all about, its more than a logo and a positioning, it's about the way a company thinks, operates and promotes itself to the audience, changing your name and logo does not count. It is also one of the most riskiest strategies that a company can employ as it risks en-dangering your current segment and not only confusing customers but also destroying the brand's heritage. 

To take a page from Coca-Cola, the world's greatest brand and still #1, according to Interbrand's Best Global Brands of 2010, who in their entire history have successfully modernized the brand without having to re-brand, i.e. the brand image and principles have been retained regardless of changes in logo design, and product packaging. Therefore its always better to think what else can be done before resorting to re-branding. 

Brand: Follow-ups'

It's been awhile since I have posted, and therefore its an excellent time to take a review of what has been going on in the world of Brands...so let's take a quick look:

The I-Pad on top with the Kindle below

Amazon, to compete with the Nook & Sony's reader, has decided to alter its distribution strategy to include retail distribution. It turns out that consumers as part of their purchase behavior need to 'touch, feel and experience' the kindle before they reach a decision. This is a drastic change for the brand whose positioning has always been that of a successful online retailer, so by selling the kindle through alternate means it tarnishes the positioning by stating that the online channel is just not enough! Is it because of what the consumer wants? or is it an attempt to establish equal footing to be able to compete more effectively? All in all it seems that Amazon have begun to doubt their own capabilities.

But what about e-reader substitutes? While the big reader brands compete among themselves (a rather myopic view), an increasing number of  I-Pad 'killers' are being launched in the market, which boast the ability to read e-books and so much more...so why restrict yourself with an e-reader only? Apparently according to Amazon's ad it's cheaper and there's no glare...... ok.... I have nothing more to say...based on functionality only now that's a tough sell.

An i-Pad look alike?

The Samsung Galaxy pad is to be one such tablet, although it may need a more memorable positioning as most new tablets brag of being able to equalize if not more with the i-Pad. So besides originality in positioning, even its design and structure of the tablet and phone look quite similar to the i-Pad/Phone range. Plus by comparing yourself to Apple, you have to question what are the objectives of Samsung..are they better on functionality? Do they want to be more popular? or have the same sales/loyalty? click here to see the ad, while more originality would be nice, on the bright side the Galaxy does have a phone!!






Speaking of brand originality, the new Old Spice commercial has taken originality to the extreme. The new ad starring NFL star Ray Lewis leaves you wondering...what's going on??? While the previous advertisements with Isiah Mustafa had brand promise, clear message/positioning and a targeted audience, the new one leaves you wondering what exactly are Old Spice trying to say? So while its great to be original and think out of the box, sometimes its not good to stray too far.....Abe Sauer covers it beautifully in the article Old Spice: We're wild and craaaaazy guys



Brand dilution is always a risk in every venture undertaken by an organization, and Xerox might be facing that with its latest ad campaign where it combines a host of various other companies/brands and how Xerox is of benefit to them...the risk is that with all the other brands (Target, P&G, NY Mets), Xerox itself might get lost in all the clutter. It also turns out that they are moving away from a functional perspective (low cost printing solutions) to a value based one in which they provide various printing solutions.... to organizations...which I gather to be their primary consumer base.



On a final note, I came across a new viral campaign by Tipp-ex (the brand not the product), which heralds a new era for interactive social media, the ad which involves a hunter and a bear (be sure to choose an option towards the end), provides the viewer free reign  in determining the interaction of the main characters; quite an engaging endeavor (!!), but while having fun there's always a chance people will remember the ad and not the brand.