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Write You - How to Avoid the Line Extension Trap
Brands can become the de facto standard but you need to make sure that you define your brand in your own terms in a positive way. Everyone has heard of Kleenex or even Aspirin. These are both brands of a product that have become a word for the product itself. You can likely think of others that fall into this category. The products these companies produce are used by so many people that the brand name and product become like one. It is unlikely that most companies will achieve this high a level of brand recognition but you can use some of their techniques to create your own brand. Before you begin branding your product or service, you need to identify what it is t
• Copycats. Everyone else has line extensions so they reason that it is the proper strategy, not taking into account the number of line contractions that frequently occur.
• Appearance of success. An insidious feature
Do you know of someone who’s unemployed? Do you find it difficult to support them? When a friend or relative is unemployed, we often don’t know the best way to support them or know the right thing to say. We try to be encouraging, and supportive, and sometimes end up saying the wrong thing and come across as being hurtful. Following are some tips on how you can help.If they had a job, they’d tell you – please don’t ask every time you see them. Be sensitive. Offer to have them over for dinner or for a movie, card playing or other inexpensive, yet fun entertainment. Could you barter for services with them? The unemployed person needs to feel needed.
For example, in 1978 7UP was the lemon lime Uncola with a 5.7% share of the soda beverage market. Trying to capitalize on this significant market share, they created 7UP Gold, Cherry 7UP, and assorted diet versions. Logic would dictate that with a greater product offering they would have gained a greater share of the market. On the contrary, their sales plummeted to 4.2%. Line extensions confuse customers.
Why do so many companies use line extensions if they tend to fail? I’m not really sure why they continue to ignore the data, but here are some possible reasons:
• They don’t do their homework. If companies took the time to investigate the lack of success of line extensions by other brands and companies, they might think better of the idea.
• Ego. They feel so successful with their current brand they think they can carry the momentum to the next item by slapping their name on the label. They also don’t think the seven keys to marketing apply to them.
• Copycats. Everyone else has line extensions so they reason that it is the proper strategy, not taking into account the number of line contractions that frequently occur.
• Appearance of success. An insidious feature
Are you thinking about changing careers but scared to blindly jump into something new? Are you not sure where to start? Most people are unhappy and frustrated with their current job, but don’t know how to create a plan to move into a new career.If you are lost about where to start, and not sure what career would interest you right now, think about your hobbies. What did you love to do when you were a kid? If you love books, maybe you would like to work in a library or bookstore. If you are good at math, consider an accounting position. Thank about how you would spend your time if you didn’t have to work to earn a living.Taking a class to learn a n
For example, in 1978 7UP was the lemon lime Uncola with a 5.7% share of the soda beverage market. Trying to capitalize on this significant market share, they created 7UP Gold, Cherry 7UP, and assorted diet versions. Logic would dictate that with a greater product offering they would have gained a greater share of the market. On the contrary, their sales plummeted to 4.2%. Line extensions confuse customers.
Why do so many companies use line extensions if they tend to fail? I’m not really sure why they continue to ignore the data, but here are some possible reasons:
• They don’t do their homework. If companies took the time to investigate the lack of success of line extensions by other brands and companies, they might think better of the idea.
• Ego. They feel so successful with their current brand they think they can carry the momentum to the next item by slapping their name on the label. They also don’t think the seven keys to marketing apply to them.
• Copycats. Everyone else has line extensions so they reason that it is the proper strategy, not taking into account the number of line contractions that frequently occur.
• Appearance of success. An insidious feature
When you want to start a home business, it can be easy to feel alone, confused, and scared. The chances are that you don't know anyone else who's ever started a business, and you don't even know who to ask if you get stuck. Here are a few things you ought to be looking at.The Internet is a great resource for people who are thinking of setting up a home business - as well as all the articles you can find with practical advice, there are also many forums, where you can read about others' experiences, and ask questions.Scary as it might seem to be getting advice on anything from the government, most governments go really out of their way to produce all
Why do so many companies use line extensions if they tend to fail? I’m not really sure why they continue to ignore the data, but here are some possible reasons:
• They don’t do their homework. If companies took the time to investigate the lack of success of line extensions by other brands and companies, they might think better of the idea.
• Ego. They feel so successful with their current brand they think they can carry the momentum to the next item by slapping their name on the label. They also don’t think the seven keys to marketing apply to them.
• Copycats. Everyone else has line extensions so they reason that it is the proper strategy, not taking into account the number of line contractions that frequently occur.
• Appearance of success. An insidious feature
You couldn’t contain your excitement and eagerly reserved exhibit space at the upcoming regional trade show. I know what you were thinking…”The traffic at this show will be fantastic and I’ll get more leads than I ever imagined.”And when the show was over, you got nothing for all your hard work.So what happened? Why didn’t your $600 booth space, $400 for collateral materials, and two days on the show floor produce any meaningful results?You got nothing because you had no valid method to address the two most critical trade show issues. First, is the show a reasonable marketing vehicle for you, and second, if so, how can you best use it to attra
• They don’t do their homework. If companies took the time to investigate the lack of success of line extensions by other brands and companies, they might think better of the idea.
• Ego. They feel so successful with their current brand they think they can carry the momentum to the next item by slapping their name on the label. They also don’t think the seven keys to marketing apply to them.
• Copycats. Everyone else has line extensions so they reason that it is the proper strategy, not taking into account the number of line contractions that frequently occur.
• Appearance of success. An insidious feature
Businesses today have a lot of competition and that is why it is important not to leave the success of your business to chance. A business plan will give you the competitive edge you need to be the best. Begin with a simple question: Why are you in business? Peter Drucker, one of the most notable names in management theory, says that the goal of a business is “to attract and maintain customers”. Attraction is all of the activities you undergo to start the relationship, and maintenance helps them want to come back and refer others to you.Effective planning requires a particular mindset. If you are willing to consider doing things differently, you are n
• Copycats. Everyone else has line extensions so they reason that it is the proper strategy, not taking into account the number of line contractions that frequently occur.
• Appearance of success. An insidious feature of this trap is that line extension usually has initial success. Consumers are usually curious about the new product with a familiar name and will try the new item initially, but long-term sales plummet. Some line extensions become market leaders further muddling the argument. But in those cases, it is usually because their direct competitors are also using line extensions such as Diet Coke vs. Diet Pepsi.
• Appearance of growth. Most executives are paid to come up with ideas on how to grow the brand. By concocting new versions of a brand, it appears as though they are earning their paycheck since there are more items in the market with their brand name on the label.
• Appearance of cost effectiveness. It would seem that extending a brand would be cheaper, since the company already has a place in the mind of the consumer. On the contrary, it often costs just as many, if not more, marketing dollars to educate the public about the new product line. In many cases, brands try to reeducate their consumers about what their name means. They are changing the promises made by the original brand.
No Splashing
An example of this is V8 Splash. V8 aired a commercial where a person drinking the new line of product is shocked to discover there is no tomato-y aftertaste. After decades of advertising and mi
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