How to enrich a brand portfolio? Earth, wind, water, and fire are the four classical elements that keep our earth in balance.
In the business world, a similar combination of elements helps make a huge impact on the business’s everyday success. Although it can seem counter-intuitive, one element in particular — fire — is often the key ingredient in revitalizing an ecosystem. In many areas, such as the forest, a wildfire can actually increase biodiversity and stability by returning nutrients to the soil and reducing the dominance of a particular species or type of life. Amazon Fresh will be an exciting, disruptive force - bring it on.
We apologize for the inconvenience.” These sorts of notices play an important role in managing a business’s relationship with its patrons because a lot of behavioral economics research has shown that when consumers feel like a rise in price is unfair, they’ll have no compunctions about taking it out on the entity in question — even if that means switching to a rival, even more expensive brand (or coffee shop). If they feel the increase was justified, on the other hand, they won’t act out in this manner.
But how do consumers decide whether a given rise in price is fair? This is definitely a case of “more research is needed,” but these findings could point to interesting ways for companies to raise prices without alienating customers. Floating New Brand Extensions, Aston Martin and Virgin Take to the Seas - brandchannel: Aston Martin may be known for its James Bond-favored sporty luxury cars, but it’s going big in its next venture.
The 102-year-old British car manufacturer has decided to get into the boat business. A partnership with Dutch yacht-maker Quintessence is producing a co-branded speedboat to extend the luxury spirit of the car to the high seas. The AM37 and AM37 S are both being designed by naval architects Muldar Design with the input of Quintessence and Aston Martin on “every single item—from the dashboard, to the deck, and down the finest detail of the interior,” according to a press release from Quintessence. The Worst Brand Extensions of 2013. What were they thinking?
By Robert KlaraJanuary 14, 2014, 12:53 AM EST The Worst Brand Extensions of 2013 Shaq Soda Illustration: Stephen Cheetham. Why It Pays to Be a Category Creator. People have been brewing coffee for more than 500 years, but if you go into a kitchen today to look at how it’s made, you’ll probably see a process that bears little resemblance to the methods used just a generation ago.
In homes and businesses alike, consumers are shifting to the cup-at-a-time pod-style brewing pioneered by Keurig in the 1990s as an alternative to the messy communal office coffeepot. The company began moving into the home market in 2004, and sales took off. K-Cups now come in more than 200 flavors and sell for about 50 cents apiece. That’s 10 times the cost per cup of coffee brewed by traditional methods, but consumers are willing to pay for the speed and convenience: In 2012 U.S. sales of Keurig coffeemakers and pods exceeded $3.8 billion, and the coffeemakers had a dollar market share of more than 40%. Keurig achieved these results not through typical incremental innovation but by creating an entirely new category—something every company should aspire to do. 1. 2. Creating New Subcategories is the Path to Real Growth: More Data.
In my book, Brand Relevance I argue that the only path to real growth, with rare exceptions, is to engage in transformational or substantial innovation that creates “must haves” that define new subcategories (or categories). In virtually any product arena that you examine over a long period of time, from water to banking to computers, any growth spurt, (again, with rare exceptions) can be associated with such an innovation. For example, in the Japanese beer market the market share trajectories changed only four times in over 40 years.
In three of those instances new subcategories were formed, and in the fourth two subcategories were repositioned. In a recent article in the Harvard Business Review, Eddie Yoon and Linda Deeken provide more evidence of this phenomenon. They observed that if you analyze Fortune’s lists of the 100 fastest-growing U.S. companies from 2009 to 2011, 13 of those companies were instrumental in creating a new category or subcategory. Brand Extension Research - The Innovator of Brand Extension. BMW, in a First, Shares Its Logo and Design Chops with Other Brands. First BMW opened its first retail store, in Paris, last spring.
And now, the brand is spreading itself around the world with a new licensing strategy that, for the first time, takes its marques outside the dealer channel with new products. Now bearing the BMW imprimatur and logos are a variety of new licensed product lines that bring the automaker to a new range of lifestyle brand partners, including Maclaren baby strollers (coming in January) with four-wheel suspension and "ergonomic removable seat liner," Aspex sunglasses with 360-degree pivotable hinges, Group III travel accessories included BMW-branded luggage, and Ball Watch watches. "This is something they've never really done before, but BMW decided that this [program] could really help build impressions and engage the customer," Jeff Lotman, CEO and founder of Los Angeles-based Global Icons, the brand-licensing agency working with BMW, told brandchannel.
Ball Watch: Ball Watch is the perfect accessory to the BMW program.