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Brand diversification


Cooks are stirring up branding

Who’d have thought that Essex cheekie-chappie Jamie Oliver would be giving marketers a masterclass in brand extension? In addition to the string of television shows bearing the Naked Chef’s name – Jamie’s Italy, Jamie’s American Roadtrip – he’s stuck his name on an array of goods, services and campaigns.

 

He’s got woodfired ovens, the Jamie Oliver Keep it Simple range of pasta sauces and the whisks and knives of the Jamie Oliver Kitchen Kit. There’s also an online shop stocking everything from DVDs to hampers, books and Jamie Magazine. All of these brands, plus Oliver’s three restaurants and charity foundation, helped set him up for the biggest payday and brand boost of all: endorsing Sainsbury’s.

 

Japanese brands know no boundaries

British marketers are traditionally cautious about diversifying beyond the natural boundaries of their core market. In Japan this concept is unknown. Japanese keiretsu, or corporations, such as Mitsubishi, Sumitomo and Dai-Ichi Kangyo, use their brands for a dizzying variety of businesses. Mitsubishi is composed of more than 400 constituent firms, including banking, nuclear power, cars, aerospace and life insurance. Almost all the firms in the keiretsu use the same logo. The model allows the Mitsubishi brand to thrive in any sector. To coordinate efforts across the group the heads of the top 25 companies belong to the Mitsubishi Kin’yokai, or Friday club, which meets for lunch once a month.

 

More marketing trivia >>

10 clues

ways to diversify

1

Tweak your brand: Guinness comes in 10 different varieties, including Red, Malta, Bitter, 250th Anniversary and Special Export.

 

2

Go horizontal: Innocent started with bottles of smoothies, then moved into cartons, yoghurts, juices and now the Veg Pot, as the brand skips along the supermarket aisles.

 

3

Go vertical: Nottinghamshire entrepreneur Gary Dutton started PVC giant Synseal by selling windows direct. Then he took the brand into wholesaling, assembly and extrusion. Each shift grew his margins. The result? A £76m-sales business with £9m profits.

 

4

Find new uses for intellectual property: Kirin has brewed beer since 1885. It used its chemical know-how to create Kirin Pharma in 2007, using human antibodies to treat blood disorders.

 

5

Brand fusion: Kahlua ice-cream, Jim Beam beef jerky, Marmite chocolate – take the essence of your brand, find a wildly different market, and blend.

 

6

Cater to national tastes: Coca-Cola Light Sango is only available in France and Belgium, Coca-Cola Citra is unique to Bosnia, Japan and New Zealand. 

 

7

License your brand: Caterpillar doesn’t make shoes, it delegates cobbling and retailing to Wolverine. Who might want to borrow your brand?

 

8

Stratify by prestige: Armani uses sub-brands to segment by price, with Georgio Armani at the top, then Armani Collezioni, and Emporio Armani for the ordinary public.

 

9

Cross sell: Iams makes pet food. So it took the brand to pet insurance. 

10

Reinvent your firm: Nokia used to make tyres and TVs. Then it focused on mobile phones. Within a decade it was Europe’s most valuable firm.

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