This week comes with the news that Cisco recently dropped its fairly popular Flip Video camera, only two years after purchasing the rights to the product from Pure Digital for $590 million. The word is that Cisco’s branching into consumer products was both ill timed and, in theory, against Cisco’s existing brand strategy, which is now being realigned to retain focus on their core products that facilitate corporate network improvement.
Brand extensions account for a large percentage of new product launches. Now don’t get me wrong, extending the reach of your brand isn’t always a bad move! But the important thing to remember is that a poor product launch that’s misaligned with your existing brand strategy can mean BIG problems: from a recoverable dip in finances to complete loss of branding credibility throughout your product line.
So, think very carefully first before trying this bold branding move! Take a look at the following brand extension failures. The good news is that you can learn from the mistakes of others!
New Coke shows Brand Identity and Heritage are Definitely Intertwined
One of Coca-Cola’s most memorable brand slogans is: “It’s the real thing” – and it’s been around since 1969. So if Coca-Cola is the real thing, then what the heck is New Coke? Well, it turns out that people did like the taste of New Coke. But the big branding mistake came to light when Southerners first learned of the drink. After all, Coca-Cola’s headquarters are in Atlanta, and to many Southerners, Coca-Cola is part of their historical identity – and boy, were they vocal about it! In the end, Coca-Cola returned to its original formula just three months after the introduction of New Coke.
The BIG Lesson: sometimes you just can’t improve on a well-liked original!
Chicken Tonight! shows Americans Will NOT Dance for Chicken
“I feel like Chicken Tonight, like Chicken Tonight!” Who could forget one of the catchiest (and simultaneously most annoying!) brand jingles of all time? Chicken Tonight was originally introduced as a product extension of Ragu sauces. As we all remember, the American version quickly failed; however, the Brits and the Aussies still enjoy Chicken Tonight as a viable product.
A couple of BIG lessons: 1.) A catchy jingle isn’t enough to stimulate product success, and 2.) Not all failed product extensions are failures in the international market!
Harley-Davidson shows Bikers Aren’t Interested in Wine Coolers
Harley-Davidson motorcycles have brand extension down pat (lighters, clothing, you name it) – but there’s a reason for the saying, “Too much of a good thing.” Harley-Davidson took their brand extension to a whole other level when they introduced a line of wine coolers in the mid-1980’s. Yes, when I think bikers I think tough guys and biker babes, leather jackets, tattoos, bandanas…and wine coolers?
The BIG Lesson here is simple: NEVER alienate your central target market!
The Moral of the Story
Whatever the reason for Cisco’s Flip drop, many agree getting ahead of the curve by dropping the product sooner rather than later was a strategic business move. But it just goes to show you: think about your company and your brand (A LOT) before you venture into unfamiliar territory. It could be the difference between a great product launch and the loss of brand credibility (not to mention a boatload of money)!
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