Stereo-SEDAN-Type | brand extension to car extension

Ana: Yuckkkk!

Clado: What happened?
(In a fraction of a second, glances around)

Clado: Okay, I know.
(Chuckles)

Ana: How do they manage to do such things?

Clado: Ha ha! Economics. Or call it a politico-economic phenomenon.

Ana: What politico-economic?!?! Where does politics come in here?

Clado:  Okay, let me not explain it right now. But I am surprised, how do they digest such things in the first place? And invest? And people buy also!

Ana: People see that sedan-like-extension and say, "Wow, badi gaadi!"

Clado: Sastey mein sedan mil gayi!
...

Clado: And you know Swift Dzire sells like hot-cakes!?!

Ana: I hate that shape! Par kya hai Maruti hai toh sab chalta hai!

Clado: Tata started the rot. Other car-makers follow suit. Maruti wins. Rotten races also have winners after all.
(Grinnnns!)

Ana: Pattttheticcc!

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Quanto slated for dustbino?

Ana (pointing towards the car that just passed by in the opposite direction): Waaaw! I just saw an ugly beast!
Clado (focussing on handling his bike on a busy road): What beast!
Ana: Yaaaa, uglier than any beast!
Clado lost in thought about such a demeaning comparison with animals. Few seconds later...
Clado: What did you see? 
Ana: Some Mahindra vehicle, I guess.
Clado: Xylo?
Ana: Not quite, but Mahindra.
Clado: Ooooh, you are talking about that... Quanto!
Ana: Gawd! Don't they think before launching!?
Clado: About what?
Ana: About whether it looks good or not, what else!
Clado: Ha ha! You've checked their bikes?
Knowing her answer, he continues...
Clado: Mahindra thinks Quanto will work because the grill looks like Scorpio's and Scorpio is a super-hit.
Ana: That's not right.
Clado: No, really! And since Quanto is shown as an SUV, I mean compact-SUV, Mahindra thinks Scorpio will come to mean the real SUV.
Ana's not listening now. Clado rambles on.
Clado: Mahindra had such a chance to dominate the category having taken the lead...

Mahindra Two Wheelers will it be called?!?!?!

The news is it will be called Mahindra Two Wheelers. Strange.

Mahindra has been always associated with rugged utility vehicles. For years, it has been known for geeps in India. Though it owns the Scorpio brand Mahindra is still more about utility.

Having bought Kinetic's two-wheeler business, is it a good idea to call it Mahindra Two Wheelers? Not really.

Firstly, Kinetic made scooters which were far from utility scooters. They were largely meant for women until the launch of Blaze.

Secondly, Kinetic didn't know how to focus on the market that it helped create, so it simply launched new brands without any sense of direction.

Thirdly, Mahindra had an amazing opportunity to create a new brand and create greater buzz in the market.

In the automobile business it seems that corporate brand (name of the company) matters at least as much as the individual brand. Would you say I ride a Mahindra Blaze? Or a Mahindra Nova? Not only does it sound unfamiliar, it also sounds weird.

Naming must be a consequence of strategy. Not just a matter of labeling or showing off the largeness of the company. Being a late comer, Mahindra needed to first work out the strategy to gain a foothold in two-wheeler market and then decide upon a name.

Instead it has publicized Mahindra Two Wheelers and branded the Kinetic Two Wheelers website with the same. Everything else remains the same. Pity! What was the hurry?

It could be that, even after Mahindra Two Wheelers, the game might not change much anyway. If a new name wasn't acceptable then even keeping it Kinetic could've worked.

Mahindra has risked diluting whatever the brand has stood for over the years.

Junior should not attach with Chyawan should not attach with Granules

That's a rather strange title to begin with. But not stranger than Dabur's strategy. I happened to see a full-page ad for Dabur ChyawanJunior

Chyawanprash has always associated with Dabur. Chyawanprash is not a Dabur brand though; it's an old recipe based on Indian scriptures. And therefore many other players in the market use the name in branding their products. You have Baidyanath Chyawanprash, Himani Sona Chandi Chyawanprash, etc.

What is Chyawanprash? A dark, brownish/blackish paste-like mixture of edible herbs in specified quantities. What's the benefit? Many benefits. It is said to provide one with many nutrients for one's over-all health. Okay, is there any problem with the product? Not really, just that children/youngsters don't find it tasty enough or good-looking enough to consume.

So, what did Dabur do? Converted the ugly looking, odd tasting paste into liquid (especially milk) soluble granules. So of course, the idea is children could have it with milk. But wait a minute. What do children have with milk? Complan, Horlicks, Bournvita... What do these brands do? They also help in growth and developing intelligence. And they taste great. Suddenly the product (Chyawanprash) which stood as a distinct category is now in direct competition with global brands and on their turf. The battle would be interesting.

So, what could be the future of Chyawanprash granules? More specifically, now that Dabur has branded it ChyawanJunior and described the product as Chyawanprash Granules, what could be said about the strategy?

1. In the first instance, on hearing or seeing the name ChyawanJunior, one would think that it's a special Chyawanprash for youngsters.
2. On a little more thought, one who has tasted Chyawanprash could get sceptical of the taste of the new product. One can say that Chyawanprash tastes the way it does because it is made of certain types of herbs. Now if the taste has changed, there's a question: has the mixture changed too? And if the mixture has changed, will it be still be so effective? How is it that Chyawanprash paste suddenly gets converted into granules? The credibility about the effectiveness of the new product could be doubtful.
   
3. For the ones who've never ever tasted Chyawanprash in life, it is immaterial whether the product is called Chyawan or not. It could as easily be called something else.
4. So, is ChyawanJunior a 'cool' name? The first part of the name might not sound as cool to the youngsters.
5. The name Chyawan also succeeds in confusing coz apart from products of other players with similar brand names, Dabur itself has Chyawanprash, Chyawanprakash, Chyawanshakti and now, ChyawanJunior!
   

It seems that Dabur could be worried about low acceptability of Chyawanprash paste among the youngsters of today. While repositioning was an option, Dabur chose the path of product innovation. It developed a new form of Chyawanprash. However, for the new form it chose to leverage on the name of the earlier product. If the earlier product was low on acceptability or was on its way down in terms of sales, then making the new product ride on former's name might not yield result. And even if the earlier products were doing well and Dabur needed to increase the market, the riding on the former's name might not yield a great deal since it might be perceived as just another variant instead of a different product altogether.

Dabur and other players in the market seem to have lost an important opportunity to create a new category.

Life's a journey. So is building a brand. Accidents happen!

Some time back I saw a few Samsonite outdoor hoardings advertising their range of shoes. These ads made me curious and when I visited malls I made it a point to visit Samsonite outlets. The shoes were impressive to say the least. However, that they are from Samsonite the brand made me a little uneasy. Tough to imagine a situation when I would say that I'm wearing Samsonites!

Brand extensions can often prove dangerous. I was just going through some articles to understand what made the company think of launching shoes under the Samsonite brand. And this is what the president, Samsonite South Asia, said in an article: “We are diversifying from a luggage to a lifestyle brand and may look at an entry into travel-related categories like eyewear, perfumeries and watches in future. The company is hoping the strategy would help it reduce its reliance on the luggage business."

What's happened at Samsonite is that they've confused 'company' with the 'brand'. The company can diversify into other categories but not necessarily the brand. Out here it seems that the brand and the company are considered the same. Look at the statements again:

We are diversifying from a luggage to a lifestyle brand and may look at an entry into travel-related categories like eyewear, perfumeries and watches in future. The company is hoping the strategy would help it reduce its reliance on the luggage business.

Samsonite is a brand and it happens to be the name of the company as well. However, for the consumer, Samsonite means high quality leather bags and suitcases. Now if the company says Samsonite means travel, does the consumer say Samsonite is 'travel'? No way! Travel is an act, an abstract concept. Or, does the consumer think Samsonite means travel-related accessories? Does the existing strongly-entrenched perception of Samsonite play no role? Does the consumer understand that the company wants to reduce its reliance on the luggage business? No way! The only thing that he remembers is that Samsonite stands for high quality leather bags and suitcases and that's why he buys Samsonite.

Also, the power of the brand has been undermined because the marketing think-tank has given into certain concepts like 'lifestyle'. Let me explain this further. What is 'lifestyle'? When you buy a Samsonite bag, do you say to yourself that you've bought a lifestyle brand? Does the consumer understand 'lifestyle brand'? Lifestyle, whatever it means, is a term internal to the marketing think-tank not to the consumer. His interpretation and use of the term 'lifestyle' is quite different. If Samsonite becomes a lifestyle brand, for the consumer it means almost nothing.

If Samsonite introduces products like shoes, eyewear, perfumeries and watches under the pretext that the brand stands for 'travel' and 'lifestyle', and spends heavily on letting the consumers know that Samsonite is 'travel' and Samsonite is bags, suitcases, shoes, eyewear, etc. etc. then it might succeed in confusing the consumer in addition to eroding the brand's current position.

Building a brand is a journey. Journeys could be fatal, when you drive thinking you own the vehicle and you own the terrain. Beware, accident-prone zone!

Smokin' Joe's Might Smoke It All!

Smokin Joe's is India's homegrown Pizza brand. And seems to be doing well. Says 'Fresh Pizzas'. Seemingly a me-too brand (following in the footsteps of Dominos), it differentiates because it offers good pizzas but at a lower price than the brand it's following.

Having tasted success, this Joe seems to have grand plans. Like? Smokin Lees! What? Yes, a brand positioned to offer Home-delivered Chinese food. There are quite a few question marks here.

1. Has Smokin' Joe's exhausted all the possibilities of growing the Pizza brand? I don't think so. So if growth opportunities exist, why shift focus from a growing the brand to launching another brand?
2. Has Smokin' Joe's studied the Pizza brands worldwide, especially the biggies like Pizza Hut and Dominos? Why didn't these two brands extend themselves into any other food category? Don't they have more understanding and wherewithal to undertake an initiative like that?
   
3. What does Smokin' Joe's stand for? How does Smokin' Lee's does justice the established brand? When the brands are meant for two different categories of food (and also, when the promises 'seem' different), why is there such a similarity in names?

Smokin' Joe's might end up undo a lot of good work that's gone behind the first brand. Firstly, it shouldn't have taken a chance to shift its focus from the Pizza category. Secondly, even it were to expand in other territories like Chinese Food, the name and the positioning deserved more thought.

Look at the name Smokin' Joe's and the way it is rendered as part of the logo. It reminds you of the wild wild west where the cowboys come from. The word 'smokin' makes you envision the gun-totting cowboys. Now considering this, how does it compare with Smokin' Lee's? What's Lee gotta do with 'smokin'? 'Lee' sure does remind you of China but definitely not the cowboys. The brand manager at Smokin' Joe's must have thought that the common element 'Smokin' might help the new brand establish itself easily. I am not sure of that, but definitely if brand-naming follows any logic (even if not pure logic but perception-driven logic), then this is a clear case of 'anti-logic'. Even if brand-naming isn't about logic, it definitely must not be so obviously 'anti-logical'.

Smokin' Joe's is Fresh Pizzas. Smokin' Lee's is Home Delivered Chinese Food. Do the two sound/mean similar things. May be. May be not. Yes there could be an overlap but the two do seem different things. Then why use 'Smokin' as a common word (or theme). My word, the two brands should've been entirely different with different promises. A brand focussing entirely on Home Delivered Chinese Food is a new happening in the market but Smokin' Lee's might not help to exploit the potential.

Kaun 'Videocon'? The power of a brand name

This post is a short one. When business grows, the brand name starts assuming a god-like status-and-mention in the media. This of course gives a hedonistic feeling to label and sell every possible product under the same brand. There could be many other reasons but the one mentioned is good enough to explain many many brand extensions we see in the market place.

Our home-grown conglomerate Videocon is one such example. But what makes it stand out is the fact that the brand name is 'Videocon'. Isn't it apparent that 'video' in 'Videocon' stands for visual entertainment products? Clearly, being one of the first-movers in the Indian entertainment products industry, Videocon came up with a good brand name for its televisions and also for, now-extinct VCRs, and CD and DVD players. However, to put the same on washing machines, tape-recorders, micro-wave ovens and air-conditioners is not just preposterous but also downright suicidal.

That's quite a statement to make for me but that's the power of a good name. Applied at the right places, it works. But apply it to something that's not a match and you kill yourself. Videocon's share in the market in most of its product-categories has been going down and one of the big reason is its branding strategy.

Reliance Fresh: Brand Names, Extensions and Troubles

Here's against mindless extensions.

Organized Retail - of all kinds - is booming in India. And all kinds of companies/ individuals have ventured/ have plans to venture into the sector. Notably the big conglomerates like Tata, Reliance, Aditya Birla, etc. Not that they've restricted themselves to one kind of format. They are exploring all sorts of formats and in different product categories.

Is the above paragraph a little vague. How could it have been any clearer; it's just a reflection of the way things are happening? And the initiatives taken by some big conglomerates haven't been without their share of troubles.

Reliance Group named its grocery retailing (dry and wet) chain Reliance Fresh. Just at the same time Aditya Birla Group also opened its grocery retailing chain under the name More. There's another chain of grocery retail stores - Spinach - which opened within the same time-frame. And of course, Subhiksha was already there. There must be other chains too but not so well-known.

All these chains of stores are doing the same thing. Giving a bigger and better shopping experience for your daily needs while charging almost the same (in certain product categories even less) as unorganized retailers/vendors. In effect, replacing the latter or taking a substantial chunk of their business. No wonder, they (More, Reliance Fresh, Spinach, etc.) would face resistance from the affected community. But it wasn't 'they', it was just Reliance which was at (or got sucked into) center of the storm. And one of the reasons is the name 'Reliance'.

What about it? Reliance has gone about branding each of its business areas as 'Reliance _______'. Until the point the company got into sectors (with the name 'Reliance') which were new, niche or additional to the economy, everyone smiled. The moment it sought to replace (under the brand name Reliance) an existing business community, it faced resistance. Obvious isn't it? A threat to your subsistence would make you sit up and react, won't it? Unorganized retailers/vendors did the same. Natural! More so when it is India, where people try so hard to live a simple life.

Reliance is perceived to be massive. All know what it is. They might not be aware of the numbers but they know its might. You might not know how heavy an elephant is, but you know its might when you see it. Indeed, when it got into grocery retail, small vendors would've shuddered thinking about the loss of business. They know the power of 'Reliance'. Here's where extension of the brand Reliance creates problems.

What if the chain was called 'Morning Fresh'? What if the brand 'Reliance' were simply kept away from the chain store brand. Perhaps, it wouldn't have stirred the imagination of small vendors/retailers so violently. They would've known the adverse impact but would've just considered it like 'More' or 'Spinach'. The moment one hears Reliance, it only conjures up an image of elephant - huge, massive, dominating. When it gets mad, it is trampling! Not just that, Reliance name has become all pervasive. Wherever you go, you find something that is Reliance. Is it a God? Is it trying to play God? We don't know but people might think so; they'll react in the same spirit - in the way they best know. Medium is the massage. When all the places are painted with Reliance and all the places you buy from become Reliance, I'm sure you're gonna lose it one way or the other.

So, it would have been more appropriate, for various reasons, for Reliance to use a different brand name, especially when it seeks to so conspicuously replace the existing businesses and small businessmen. Telecom was new (new in people's lives), something additional. Naming it Reliance brought in kudos for the company. Context matters. Understanding the context matters as much.

Abstractions in Extensions

Abstraction is tough to sell. It's easier to imagine the face of a girl if you've met/seen her. But if you hadn't seen her, you wouldn't be able to figure out even if I described her features in the best possible way. Sounds similar to "A picture is worth a thousand words." Words are abstract, visuals are a little less. Isn't it also similar to saying "Actions speak louder than words."? Pictures are more tangible, more concrete. Actions have greater impact, are easily felt.

Let me explain through some concepts through a lollipop exercise:

Imagine 'Soft'. What happened? Difficult? Easy? What did you imagine? Velvet, Sofa, Fur, Fairy, Child or something else... Fair. You can imagine many many more things.

Imagine 'White'. Fairy, Milk, Soap, Fur, Feather, Swan, etc. You can imagine many things.

Imagine 'Beauty'. Aishwarya Rai, White Marble, Taj Mahal, Lake, Sea-shore, Smile, etc.

These words can represent many things at the same time. Said in isolation, they would conjure different images in different people. Yes? You would agree. Different minds would converge to one image only if there's another word (added to any of the above words) which would force them to think in one dimension. For example, if I say 'White Feather', you can't imagine any other thing than 'a feather which is white'.

Now comes my assertion: When a brand is extended, 'whatever the brand stands for' needs to be made an all inclusive concept, which forces the concept to become abstract; the end result of which is lack of clarity about 'what the brand stands for' in the consumer's minds. The more the extension, the more the abstraction. The more the abstraction, the lesser the understanding among consumers.

Consider the brand Dove. Typically, if I ask someone what is brand Dove, I would get a reply like 'Soap with Moisturizing Cream'. And the image in the mind would be a 'white-colored soap' in 'bar' form because perhaps moisturizing cream has come to be associated with 'white' or perhaps Dove always highlighted the white color of the soap. So, that's Dove for you. Soap with moisturizing cream. And we have plenty to say about how successful a brand it is.

However, some marketers are bent on extending it. In fact, they have extended it to include other variants of bar soap, body wash, shampoo, deodorant, etc. Ask them what does Dove stand for? To give an umbrella concept, they'll say Dove is 'Softness'. Or perhaps something else, if they are able to fetch the right word that is. In other words, consumers would now have to think of Dove as 'softness (or whatever else)'. As abstract as that! Definitely with all these offerings, consumers can't say Dove = Soap with Moisturizing Cream. For if they still say that, then Marketing Managers of Dove have failed. And, if they don't say that, then the Marketers have successfully replaced a concrete concept like 'Dove = Soap with Moisturizing Cream' with a rather vague one like 'Dove = Softness'.

But the concept of 'softness' is different in different products, therefore difficult to realize (for consumers) for each of the product categories. Marketers will try and force it down the consumers throats the idea of 'softness'. Why? Because the former have intellectually and logically inferred what Dove is and now they assume the right to teach the latter what Dove is. Wow! The consumers will have to accept it, isn't it. They have no choice. They have to watch television, they have to watch soaps. But on the retail shop-floor they have a choice to ignore the shampoos, deos and whatever you have.

Have doubts? Then, try answering what is the brand Dove? And if you come up with an answer, you know what Dove is, and it isn't. Is it just 'softness'? Do you buy its deos, shampoos, etc? Perhaps. Will you continue to buy the same in future? May be, may be not. But will you buy the soap in future? Definitely.

Thankfully for Dove, it might thrive on people's belief in the 'Moisturizing Soap'. But in other cases, through the means of needless extensions, marketers might be successful in making the brand abstract, thereby obliterating the existing equity and eventually, killing the brand.

Brands need less extension, less abstraction. Less abstraction by itself will lend concreteness to the brand, help solidify its position and therefore, facilitate easy understanding and memory among the consumers. Think before you extend.

Peter England, who?

The other day I met a friend who holds the distributing rights for one of India's very well-known garment brand Peter England. On the occasion of an alumni meet, he had set up a display kiosk for Peter England ELITE at Entrepreneurship Development Institute of India.

Talking about brands and branding strategy, in response to a rather skeptical remark regarding the fate of ELITE by one of our friends, he retorted, "Do you know how much it takes to create a new brand in the market? Rs500 crores!"

I agree. You would also agree. However, it isn't just about money. Or if marketing managers think that branding is just an easy way of minting money, then brands are doomed and consequently, companies too.

Peter England has been around for many years now, perhaps at least a decade. What is Peter England? One would say an inexpensive and smart formal/office wear brand for young male executives. Then what's Peter England ELITE? Well, it is likely to be expensive formal/office wear brand for young male executives.

Okay, so what is Peter England after launching Peter England ELITE? It is expensive and smart and inexpensive formal/office wear for young male executives! Add to the confusion; ELITE is just one of the latest extensions of the brand. Read the story below. This little article published in THE HINDU is worth reading:

Aditya Birla Nuvo’s Peter England Fashions and Retail Ltd is to launch Peter England family stores housing men’s, women’s and kids’ wear and accessories by mid-next year, said Mr Aloke Malik, President.

“The work for the stores is in progress and we might finalise something by December. We will open a limited number of large format mid-value stores of 10,000 – 15,000 sq. ft. and want to leverage the equity of Peter England,” he said.

The store is targeted at age-band of zero to 35 years and will house the company’s brands in segments where they have a manufacturing facility. For kids’ wear, it might have to outsource the garments, he added.

“We have an aggressive retail expansion plan and aim to grow in quality as well as additional stores,” said Mr Vikram Rao, Business Director, Textiles & Apparels.

Peter England forayed into the premium and sub-premium segment of shirts, with Peter England Elite, targeted at young office goers.

Aggressive ad campaigns are in the loop to promote this new range through outdoor media, print, on ground methods and the Internet, said Mr Venkataramani K, Brand Director, Peter England. Ranging from Rs 995 to Rs 1,395, the shirts and trousers of Peter England will be available in its flagship and select retail outlets. The new brand is concentrating on the mid-priced aspiring customer.

The first phase of Peter England Elite is being launched in Delhi, Mumbai, Bangalore, Pune and Nagpur, while countrywide distribution will be in place by next 6-8 months.

The company garnered revenues of Rs 270 crore in the current fiscal and plans to create a Rs 500-crore Peter England brand within the next 3-4 years, said Mr Malik.

Fantastic! What grand plans! Make a Rs270 crore brand into Rs500 brand in 4 years. Wow! How? Leveraging the equity of Peter England... And how is that? Have a look at what the messages include: 1. Aggressive retail expansion 2. Grow in quality 3. Additional stores 4. Peter England family stores housing men’s, women’s and kids’ wear and accessories 5. The store is targeted at age-band of zero to 35 years and will house the company’s brands in segments where they have a manufacturing facility 6. For kids' wear, it might outsource the garments...

Helloooooo! It's unbelievable. Whoever asked the marketing managers and brand managers to meddle with Peter England... Ask a common male office-goer about Peter England and he might tell you what it is - inexpensive and smart formal/office wear brand for young male executives. After all the strategy given in the article, what will Peter England be? A family retail store with expensive/ inexpensive, economy/sub-premium/premium formal/office wear for young male office goers, with some garments for women and with some garments for kids and with some accessories also! Imagine! How creative and multi-faceted!

It's an amazing story of how a brand created with so much focus and such clear definition over almost a decade is now being torn apart left, right and center. Excuse? Leveraging the equity! Make it Rs500 crore brand! Sir (Management/CEO at Madura Garments), you might want to do anything with it but Peter England's gonna mean the same thing as it has meant to consumers. If you force a change, do so at your peril. Short-term you might raise consumer's interest and curiosity and perhaps your sales, medium-term or long-term you are gonna kill what the brand has so strongly stood for and lose your ground as well as leadership to more focussed and opportunistic competitors in a growing market. Let Peter England be what it is. You want to capture other segments, do so by launching a new brand or wait till it is an opportune time to launch something new. Meanwhile stay with Peter England (the way it has always been), Allen Solly, Van Heusen and Louise Philippe and enjoy the fruits.