Word: brandings
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Dates: during 1980-1989
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More and more companies are making the same decision as Mrs. Paul's. They are using established brand names on new products, a strategy known on Madison Avenue as "brand extension." Honda Motor Co. made sure its well-known auto motive name was prominently displayed on the firm's new power lawnmower. General Foods named its dessert-on-a-stick Jell-O Pudding Pops. Also in the testing stage: Jell-O Slice Creme, a freezer cake mix; and Jell-O Gelatin Pops, whipped gelatin on a stick. "The consumer is suspicious of exaggerated claims and therefore trusts certain...
...Brand extension is basically a way to get more sales bang for the marketing buck. Experts say it now costs $30 million or more in advertising and marketing to launch a new brand nationwide, and just one item in ten survives. By presenting buyers with a familiar name, companies generally increase the chances of success. Says Edward Tauber, a University of Southern California marketing professor: "It's a method for a company to enter a new business through the lever age of its most valuable asset-the consumer awareness, good will and impressions conveyed by its brand name." Deere...
Companies can also profit from their good brand name by licensing it to other manufacturers. Levi Strauss capitalized on the success of its blue jeans by selling the right to use the Levi's name on boots, shoes and special models of American Motors' Jeeps. The familiar Playboy trademark appears annually on $120 million worth of products worldwide, including gold cigar boxes in Tokyo and men's toiletries in London...
...that the new product may take sales away from the old one. When it was introduced in 1964, Maxim freeze-dried instant coffee, which was named to trade on the reputation of Maxwell House instant coffee, stole millions of dollars in sales from the older product. Other attempts at brand extension fail because the gap between the old and the new items is too wide. Arm & Hammer, for example, unsuccessfully tried to stretch its baking-soda name to include an underarm deodorant. The company is still trying, however. It has put its name on new deodorants for carpets...
...approach, though, is now under increasing pressure from tough new competitors. Major toy manufacturers, including Mattel, Remco, Ideal, Hasbro and Mego, have introduced broad lines of make-believe makeup. Toy and Hobby World magazine lists Remco's Crayon Children's Play Cosmetics as currently the top-selling brand. Remco also tempts the tots with Blue Ice Eye Shadow and Sweetheart Pink Lip stick. Hasbro offers a Fresh 'n Fancy kit that allows the girls to mix their own makeup colors. The prices of these play cosmetics range from $1 for a small locket containing lip gloss...