Medical Device Link.

BRAND MATTERS

Robert C. Sprung

Brand extensions surround us. The Jeep Stroller, the Red Cross Emergency Radio, and even the kitchen sink made by Jacuzzi are all examples. A brand extension can be defined as a move into a new area often not directly related to a company’s core competency. Almost all brands are getting in on the extension game—and that includes companies in the healthcare arena.

THE TOP EXTENSIONS

TippingSprung conducts an annual trends survey on brand extensions in cooperation with Brandweek magazine. A total of 860 respondents to the survey chose the following top brand extensions. American Red Cross emergency radios were named best overall brand extension with 56.7% of the vote. Pantone Eurolux house paints came in a distant second with just under 18%. Runners-up included Nike MaxSight contact lenses (with Bausch & Lomb), Build-A-Bear Workshop youth home furnishings (with Pulaski Furniture), and Dwell Homes by Empyrean (with Dwell magazine).

The Red Cross radio positions Red Cross cleverly. “We don’t just come in after a disaster, we come in beforehand and help prevent and prepare for emergencies,” Red Cross seems to say. This would be similar to Allstate Insurance going into preventive businesses such as offering burglar alarms or locksmith services. This extension also illustrates the growing trend of nonprofits licensing their brands. (Other examples include the National Geographic Society, the U.S. Army, the Sierra Club, NASA, and the Audubon Society.)

Pantone was considered a great, logical extension. Its score may be hampered given its niche; most people don’t know the brand. However, it is the color-matching standard for professional designers.

WORST BRAND EXTENSION

The extension that least seemed to fit with the brand’s core values was won by Cheetos lip balm (41.4% of respondents). The Salvador Dalí deodorant stick, part of a line of cosmetics and body care products sold under the surrealist painter’s name, came in second with 28.3% of the votes. Respondents also felt there was something inappropriate in Diesel Jeans wine and Chicken Soup for the Soul pet food. (A past “winner” in this category was 2004’s Hooter’s Air airlines, which has since announced the suspension of regular commercial flights.)

EMERGING TRENDS IN BRAND EXTENSION

Celebrity brand extensions. The survey also looked at the popular but crowded field of celebrity brand extensions. SpongeBob SquarePants organic edamame beans was seen as a miscue by 84.1% of respondents, who perhaps felt that the move to brand fruits and vegetables (something Disney has also done) was inappropriate. Respondents were about equally split on Jeff Foxworthy beef jerky, LiveStrong life cycle mutual funds (Lance Armstrong Foundation), and Willie Nelson biodiesel fuel.

As the market becomes saturated with celebrity extensions, consumers are increasingly critical about the brand fit. Although Lance Armstrong has reached almost mythic status, that doesn’t mean a consumer will make investment decisions based on his celebrity. And despite Willie Nelson’s embrace of environmental issues, his persona may not lend sufficient credibility to fuel.

Brand revivals. Recent years have seen the revival—or attempted revival—of numerous “heritage brands.” Resurrecting brands or reshaping them in ways that resonate with core audiences is a challenge that entails significant risk. Entrepreneurs are banking on the nostalgia factor. Can the brand be made newly relevant and make money after the initial excitement of an old friend’s reintroduction? A skeptic may ask: the brand did disappear for a reason, didn’t it? Scoring high in this year’s survey were Hubba Bubba and Holly Hobbie.

A full copy of the survey report can be obtained by sending an e-mail request to robert@tippingsprung.com.