Sophie posted an interesting article on facebook " The Luxury Brand Effect: Should BMW sell Ketchup" It hypothesises that recession-wracked shoppers are eager to embrace luxury brand names over a wide range of product categories, including those with little logical connection to the brand's core item.The authors attribute this phenomenon to the "promise of pleasure" — a brand like, say, Cartier evokes strong, positive emotional responses in consumers, and those good feelings can be easily transferred to stuff like furniture, cheese and even, yes, ketchup.
But this aint a new phenomenon. Successful brands and companies alike know that they always have a "Core". There is an underlying "Success mantra" and just like certain names evoke a perception so do brands. E.g. All Indians would realize that a name like Vijay Sighania would evoke images of grandeur , businessman with abundance and royal charm.
So while BMW Ketchup may not necessarily sell because it doesnt derive any characteristics of Brand Core (none i can think of), some examples of companies who have already leveraged there brands "Core" to cross sell services are -
Tata Group (i am biased here) - The brand always signifies trust and solidity. For over a century this brand was entrenched in commodities business like steel and vehicles. However over the past 2 decades you see them moving into leveraging the "Trust and solidity" image across the diaspora of retail products from retail chains (Westside and Chroma) to Mobile (Tata Teleservices now Docomo) to cheaper hotel chains (Ginger) to Tanishq (jewellery and watches).
Another well known example is Harley - which has leveraged the automobile brand to clothing lines, branded accessories and add-ons
So here are some Luxury brands who could leverage there core and associated "product" areas they could move in to by leveraging there Brand DNA -
Wild ideas but as Einstien once said " Its not as important to have knowledge, but absolutely necessary to have imagination"
But this aint a new phenomenon. Successful brands and companies alike know that they always have a "Core". There is an underlying "Success mantra" and just like certain names evoke a perception so do brands. E.g. All Indians would realize that a name like Vijay Sighania would evoke images of grandeur , businessman with abundance and royal charm.
So while BMW Ketchup may not necessarily sell because it doesnt derive any characteristics of Brand Core (none i can think of), some examples of companies who have already leveraged there brands "Core" to cross sell services are -
Tata Group (i am biased here) - The brand always signifies trust and solidity. For over a century this brand was entrenched in commodities business like steel and vehicles. However over the past 2 decades you see them moving into leveraging the "Trust and solidity" image across the diaspora of retail products from retail chains (Westside and Chroma) to Mobile (Tata Teleservices now Docomo) to cheaper hotel chains (Ginger) to Tanishq (jewellery and watches).
Another well known example is Harley - which has leveraged the automobile brand to clothing lines, branded accessories and add-ons
So here are some Luxury brands who could leverage there core and associated "product" areas they could move in to by leveraging there Brand DNA -
Wild ideas but as Einstien once said " Its not as important to have knowledge, but absolutely necessary to have imagination"
- Jimmy Choo can diversify into Ipod Casings, Car accessories, because its Brand DNA = Flaunting anything take "encases"
- Ferrari can launch and internet browser because its all about being "Fast"
- Rolex/ Patek Philippe - can launch a high end airlines because its all about "On time in Class"
- Bulgaria - scented washing powders anyone
- Zegna Diapers -- its finally about dressing a man in style why not start from the first cloth worn
- And finally Victorias Secret Condoms --- luxury in initimate moments :-)
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2 comments:
...I guess Big Fashin houses are already doing this..maybe only in that direction which captures its Target Market better or atleast serves the fan base...Like
1) Ferrri do came up with Acer Ferrari; one of the fastest laptops of its time
2) Victoria Secret came up with complimentary CD's for music to enhance intimacy in bed
3) Porsche; Prada; Versace all came up with their own lines of Mobile phones cobranding with vendors
4) I-Pod has its own complete range of Bling Jewellery from luxury designer brands
And i forgot to mention.....Versace coming up with its own chain of resorts and hotels ...where you can imagine from carpet to toilet paper to toothpaste..will be ultra designer and luxurious. :)
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