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Small Brand Strategy – Not Just for Electronics Anymore

ipod_shuffle_in_handMiniaturizing products has been the hot thing to extend brands in the electronics market for a long time.  As we all know, history is cyclical, and therefore, so are consumer demands.  For many years, consumers believed “bigger is better” and demanded the largest version of just about every product you can imagine — from SUVs to laundry detergent, and everything in between. 

I read an article on Branding Strategy Insider this week that discusses the hot topics at Reuters Global Luxury Summit this month, and it appears the cycle has changed and smaller is the cool thing again (and that’s not just for cars).

There are a number of reasons why it makes sense to return to focus on small:

  1. Market conditions: The current state of the economy makes it cost prohibitive for many consumers to purchase products in bulk or to purchase the biggest and boldest option from the hottest envy brand (e.g., a gigantic Louis Vuitton bag). 
  2. Cost of entry: Many consumers are interested in trying a product or brand, but the “larger” versions that dominate store shelves these days are too expensive for a trial purchase.  Smaller brand entry versions make testing a product a lot easier and less frightening in this economy.  Hopefully, the new customer who tries the smaller version will like it and return to buy the product or brand again and again.
  3. Global market introductions: If a brand wants to break into a new global market, a smaller version is a good way to do it successfully.  Not only are the customers in many markets around the world struggling, but many of these markets are still at the early stages of growth.  Consumers in emerging markets are just beginning to learn about making intelligent purchase decisions, determining value, and so on.  Offering smaller product versions is a great way to slowly integrate a brand into a new market.

How many times have you considered trying a new brand but you can’t find a small size?  Rather than investing a large sum in a large version of a product or brand, you forego it completely for two reasons: you don’t want to waste money and you don’t want to waste the product if you don’t like it. 

What does that tell you?

A small brand strategy might be just want your brand needs right now.

What do you think?

Image: Flickr

Disney Branded Netbook Coming from Asus

disney-computerA new Disney branded netbook is coming, which will be targeted to children between the ages of 6-12 with a $350 price tag.  Asus will manufacture the Disney netbook, complete with Disney Princess graphics for girls or a Mickey Mouse design for boys.  Naturally, all the Disney “stuff” you can imagine will be preloaded and at kids’ fingertips, such as Disney wallpapers and themes, a Radio Disney widget, etc. 

The online buzz about the Disney branded netbook among parents is related to the types of parental controls the netbooks will provide.  Apparently, Disney netbooks will come with parental controls that require parents to approve email addresses and websites before a child can access them.  As you can imagine, a Disney netbook that allows a child to visit an inappropriate website would not be good for the Disney brand image.  Of course, kids under age 12 have been known to modify security settings on computers without their parents knowing about it.  We’ll have to wait and see how effective the Disney netbook parental controls actually are when the product launches in late July.

It seems like a Disney branded netbook is a good brand extension.  The price point is not exorbitant (remember the over the top Disney Dream Desk PC from several years ago — see the picture in this post), and this is a product that children should be able to use not just for entertainment but hopefully, for some kind of education as well.  Disney has been known to pursue and even launch some highly questionable brand extensions in the past (remember Disney wine?), which fizzled quickly.  It’s nice to see a brand extension that actually makes some sense.

However, there is something to be said for brand focus.  It seems like there is almost nothing that Disney isn’t willing to put their brand name on in return for a licensing fee (except the aforementioned Disney wine which bombed before it even hit the market fully).  I suppose I’m thinking of it this way — Disney games, okay.  Disney electronics, still okay, but stretching it a bit.  Of course, the Disney brand remains strong and over-extending the brand hasn’t overly diluted it yet.  I wonder if it ever will.  Or is Disney the brand that can survive, thrive, and extend forever?

What do you think?

Image: Flickr

Penske Rescues Saturn from GM

saturn-penskeI remember back in 1994 when I bought my first Saturn and in 1996 when I bought my second Saturn.  I didn’t buy another after that.

In the beginning, Saturn was a brand built on differentiation and word-of-mouth marketing.  It was a brand that created expectations and lived up to them.  It was a brand with a clear brand promise, “a different kind of car company,” and it lived up to that brand promise again and again.  The result was a powerful cult brand with a large band of loyal brand advocates.  It became a relationship brand that relied on brand experiences — in the showroom, in the service department, at the manufacturing plant, and even at the annual Saturn owners picnic, which drew thousands of loyal Saturn owners from around the United States each year to share their love of the Saturn brand.

In just a few years later, everything changed, and Saturn has never been the same. [Read more…] about Penske Rescues Saturn from GM

Brand Name Challenged Microsoft Cries ‘It’s Not a Netbook”

netbookWindows 7, Windows 8 — Microsoft is known for branding its products with nondescript, meaningless names.  Now, Microsoft is rebranding the netbook computer using it’s oh so boring brand naming strategy.  Ready for this one?  Here goes:

At the Computex event in Taipei, Microsoft announced that netbooks will now be called “low cost small notebook PCs”.  I’m reminded of Arnold Schwarzenegger in the movie “Kindergarten Cop” when he cries, “It’s not a tumor,” but in Microsoft’s case, the mantra is, “it’s not a netbook!”

Why is Microsoft renaming netbooks?  Because segmenting the market will differentiate machines that offer so much more than Internet access!  Although rumor has it Microsoft’s intentions have less to do with enhancing the features of netbooks to create something better than ever that consumers have been clamoring for as it does with trimming down the existing netbook by removing Windows Starter Edition from them.  Either way, it’s one more notch on the belt of confusion for Microsoft and its brand strategy.

Here’s an idea for Microsoft — how about focusing on making the products they already have actually work the way they’re supposed to?  I’m just saying.

How do the new “low cost small notebook PCs” fit into the existing marketplace, and how do you know exactly what you’re buying or what you already have in your hands?  Check out the hilarious netbook lexicon flow chart courtesy of The Register.  

If that isn’t evidence of consumer confusion, I don’t know what is.  There is something to be said for simple branding strategies.

Your thoughts?  If it looks like a netbook and smells like a netbook, is it a netbook?

Image: Flickr

Top 100 Global Brands of 2009 Ranked by Brand Z – Google Rules the World

google_logo_buildingEach year, WPP sponsors the annual ranking of the top 100 global brands through its report from Brand Z.  The results for 2009 are in, and the list isn’t that surprising. 

Google tops the list.  HSBC ranks 30th as the top international financial institution in terms of brand value — not surprising based on the financial meltdown in much of the world that affected most banks and finance companies.  Toyota ranks 14th and is the highest ranked auto brand (interestingly, Honda ranks a mere 50th).  Walmart comes in 3rd, and is the highest ranked retailer.

I find several things particularly interesting about this brand ranking report: [Read more…] about Top 100 Global Brands of 2009 Ranked by Brand Z – Google Rules the World