Rus News Journal

Prick an umbrella

If the company has successfully deduced the trade mark on the market, it quite often has a temptation: instead of whether to start to let out under already popular brand other categories of the goods? The umbellate brand as a result turns out. However an outcome of similar experiments to predict difficult.

expansion of borders
With competition strengthening each company, even the most successful, is compelled to reconsider marketing strategy and to think of, how to strengthen the positions. According to many experts, it is impossible to constrain an impact of competitors, having only one product and a brand. An exit - or to expand borders of already available brand, or to deduce on the market new. And sometimes to do both that and another.

If the company chooses brand expansion it occurs, as a rule, in two basic directions. Manufacturers try to play love of consumers to a variety and offer them expansion assortimentnoj rulers (line extention): additional tastes of a familiar product, other size of the packing, new colour and etc. For example, PepsiCo recently has let out a drink of blue colour, and the mark of juice J7 offers to 20 different tastes.

Other strategy calculated on a gain of trust of consumers, - expansion of the brand (brand extention), that means release under one mark of the goods of different categories. As a matter of fact, it also is an umbellate brand. So, under mark “ Red Ap “ curd cakes, yoghurts, fruit mixes, juice and etc. And the company " are on sale; Petrosojuz “ under mark “ Dream of the mistress “ makes pelmeni, vegetable oil, mayonnaise, margarine.
But where exactly expansion of a ruler comes to an end and the umbellate brand - a question disputable begins, and each expert in marketing has in this respect the opinion. Some, for example, consider that under one mark it is not necessary to name release of milk, kefir and curd cakes an umbellate brand as they concern one commodity group - dairy products. Others, on the contrary, name it classical “ an umbrella “. There is no unequivocal opinion and on, whether is “ an umbrella “ release under mark Ariel belonging to company Procter & Gamble, detergent powder and gel.

Mathematical procedure under the name “ klasternyj the analysis “ allows to group various commodity positions proceeding from how much they are close in perception of the consumer. The result is made out in the form of a hierarchical tree. The separate positions are closer are located to each other, the it is more, according to the consumer, between them than the general, and at the manufacturer, accordingly, there are more than chances to make of them a successful umbellate brand. On the schedule research of perception of confectionery is presented. From it, in particular, follows that for the consumer cookies and wafers more the close friend to the friend, than simply wafers and a wafer in chocolate.

However as the general director of agency Brand New Brand Alexey Suhenko speaks, it is not necessary to approach to terminology too strictly. Much more important a question on that, these expansions are how much useful to the manufacturer. Here again again - taki there are the most different opinions. Oleg Beriev, the general director of agency Mildberry: “ Among experts there are two categories of people - supporters “ an umbrella “ and its opponents supporting separate monobrands. At everyone the pros and cons, but most likely, are right both those and others “. As practice shows, all depends on a situation in the market. But even in the same conditions umbellate strategy can result both in marketing and financial success, and to a grandiose failure.

the Main advantage of umbellate strategy consists that if you have a known brand on promotion of the new goods under the same mark it is required much less means, than start of a new independent brand. Ekaterina Dvornikova, “ In the competitive markets (beer, mayonnaise, confectionery and etc.) Expenses for a conclusion of a new trade mark can make $1,5 - 2 million And it only on advertising. And it is necessary to pay still to trading networks for a place on a regiment, to be spent for a merchandising, to acquaint consumers with the new goods and etc. But half of this sum, and even it is possible to save more if to make an umbellate brand “.

This data is confirmed, for example, with Victoria Kjufarjan, the director of department for work with clients of advertising agency Twiga Advertising: “ We were engaged in working out and a conclusion to the cosmetics market under mark Faberlic. It has been from the very beginning decided to create “ an umbrella “: the cosmetic market is oversaturated by brands, and new here to survive difficultly. Besides, “ an umbrella “ has allowed to save at least 30 - 40 % of means for brand advancement “. Evgenie Artemyev, the head of department of external communications of the company “ Bystrov “ Too has noticed what to have “ an umbrella “ favourably: “ I think that if we untwisted is a little brand, instead of one, it would demand much more investments. “ an umbrella “ allows us to spend more effectively means “.

At the expense of what the economy is reached? As the general director of agency Media First Yury Malinin explains, the umbellate brand extends to all goods which it unites, the certain quality symbol and reputation. That is it, as a matter of fact, renders to each new product included in it, support (endorsement). The director for marketing of advertising group Depot WPF Vasily Mitko argues so: “ If at people the sensation that, for example, Nestle - qualitative and tasty chocolate this perception is possible " was already generated; to stretch “ on cookies and wafers. Besides, consumers with bolshej hunting will try the goods new to under already familiar brand, than a brand to which they do not have any relation - either bad, nor good “.

Some experts in marketing consider that umbellate brands possess also one more advantage before monobrands - to the manufacturer to adjust their distribution easier. So, the trading network takes faster on realisation the new product which has been let out by the owner of a known brand, than absolutely not untwisted mark. Therefore successful expansion of a brand can become favourable not only from the financial point of view. It is capable to increase force of a brand - the donor for the account bolshego presence on regiments.

Many companies let out the goods which obviously are not the cores in their structure of sales under umbellate mark. It becomes for additional support of the basic brand. So, the majority of the beer companies sell under the mark suhariki (“ Botchkarev “ “ Klinsky “ and etc.) . The company “ Heppilend “ too has developed a series rye suharikov “ Trofi “ in addition to low alcohol sokosoderzhashchim to cocktails under the same name. In this case the umbellate goods will remind once again to consumers of a parent brand.

Umbellate brands give to some firms and other possibility - to bypass the law limiting advertising of alcohol. For example, Russian it is wine - the vodka company has let out a low alcohol drink “ Leader Mix “ and actively it advertises. However in consciousness of consumers the image of this mark associates first of all with vodka “ the Leader “. However, the company also does not hide that has started “ an umbrella “ specially for advancement of the basic goods.

Probably if the situation with umbellate brands was unequivocally positive the companies would be reoriented for a long time on this strategy. However advantages of an umbellate brand are with interest compensated by its lacks.

So, letting out an umbellate brand, the manufacturer, as a matter of fact, puts all the “ branded “ the capital in one basket. If at least one goods from “ an umbrella “ it will be negatively apprehended by target audience, it will be reflected in mark as a whole.

Alexey Suhenko has resulted as an example initially, from its point of view, the wrong approach in formation “ an umbrella “ brand history “ My family “. The company “ Petrosojuz “ has bought from the leader of a telecast “ My family “ Valery Komissarova the right to manufacture under this mark of some products (mayonnaise, ketchup, pelmeni and etc.) . To owners “ Petrosojuza “ the word combination has simply attracted, but they would not like, that the consumer assotsiiroval it with TV program - much it was not pleasant that could be reflected in a brand negatively. They tried “ to build up “ from the transfer name - have thought up the logo, have spent an advertising campaign, but despite qualitative products, and could not overcome negative influence of a parent brand. Alexey Suhenko: “ Petrosojuz “ has tried otkupit a slice from the general brand “ My family “ but it has turned out nothing. This same as though we took a usual umbrella, cut off from it a rag and have tried to be protected from a rain. From - for this errors it was necessary to be spent then to deduce on the market other brand - “ Dream of the mistress “.

One more argument against was resulted by the ardent opponent “ umbrellas “ Michael Dymshits, the general director of agency “ Dymshits and partners “. He considers that brand extention basically in what good does not result: “ Expanding the brand, the company starts with the assumption that the trust of consumers to this brand in one commodity group will extend and on another. As a whole it is true, but the manufacturer can count only on 10 % of consumers of the basic goods and still approximately on as much clients consuming only “ expansion “ a brand “. Supporting the opinion, Michael Dymshits has referred, in particular, to own data. As a result of the research spent by its agency for large western cosmetic firm (it lets out the goods under the general umbellate brand), the following was found out: probability of that the person who has bought one name from “ an umbrella “ bought then and the second, did not exceed 30 %. “ So for the same money, and even it would be possible to deduce on the market some monobrands " more cheaply; - mister Dymshits speaks.

There is also other objection. So, some experts in marketing deny that brand expansion allows to save on advertising expenses. “ on the contrary, it demands disproportionate growth of expenses on advertising, - Michael Dymshits confirms. - That the consumer has remembered that the best goods of certain group bear a concrete name, it is necessary nearby 100 GRP (gross rating point; the numerical indicator used at an estimation of efficiency of the advertising action). And that it has remembered two objects, moreover and communication between them, it is required already 400 GRP. That is advertising expenses increase several times “.

the Part of experts assert that brand expansion leads to increase in so-called erroneous purchases that is not in the best way reflected in image of mark. The consumer gets to 200 commodity positions in a week and not in a condition attentively to read all labels. First of all it makes habitual purchases and is guided by familiar packing. However in it there can be absolutely other product. Probably, someone will be delighted to a novelty. But the great bulk of buyers is conservative, and, most likely, acquisition “ wrong “ the goods will cause irritation. One our colleague, for example, has bought recently shampoo in a supermarket. Only houses the woman has found out that in a bottle there is a hair balsam. Shampoo and balm differed only colour of a cover. As she said, she felt deceived. Quite probably that next time the customer in general will prefer other mark.

the more widely, the already
However the main danger “ an umbrella “ - risk of washing out of a brand. According to experts in marketing, consumers prefer strong brands not only because quality of a product is guaranteed. The main component of success is their extrafunctional value for the client - the belief based on emotions and feelings. Therefore expansion should not clash at all with the developed image of a brand, that is the concept “ an umbrella “ is obliged to correspond to brand positioning - the donor. Vasily Mitko: “ One of brand functions - to make a choice more simplified and mechanistic. For example, I want some beer - I buy “ Tinkoff “ I want some juice - I take J7. Expansion of the same J7, for example, on a category “ mjusli “ will already bring chaos in consciousness of the consumer. If to try “ to stretch “ “ an umbrella “ On a little essentially different categories positioning will be washed away more and more, and to clearness in a head at the consumer becomes even less “.

So, the dim brand loses the force, and it competitors can use. That it to avoid, it is necessary to approach carefully to a choice of new commodity positions for “ an umbrella “. If categories different to extend to them “ an umbrella “ more difficult, and at times also it is simply impossible. Become already axiomatic example - a failure of umbellate mark “ Dovgan “ under which was issued more than 200 various goods - beginning from vodka and finishing cookies. It was the error in spite of the fact that vodka release brought in the companies the decent income. Alcoholic marks, as a rule, are monobrands, and to sell under them any other product is inexpedient (unless pickles). Oleg Beriev: “ Hardly Comet can become good mayonnaise in consciousness of the consumer, and the cosmetics from LG - to be pleasant to true women of fashion. At the same time dry breakfasts “ Bystrov “ (mjusli and corn-flakes “ Mechtalki “) - More defensible step, as porridges and dry breakfasts - categories relatives “.

However, from rules there are exceptions, and among wide “ umbrellas “ there are successful. For example, company Virgin based by British businessman Richard Brensonom, unites under one mark avia - and the railway company, supermarkets on CD sale, publishing house, perfumery, cosmetics, clothes, manufacture of soft drinks and etc. However all these malosovmestimye things strongly keep on the general idea of a brand: there, where Virgin, - the fun, certain spirit and style of life. Alexey Suhenko: “ In Russia while there are not enough bases that it was possible to do such wide “ umbrellas “. But the potential, undoubtedly, is. For example, the heroine of cartoon films of Masjanja - the good character for “ an umbrella “. As far as I know, with the owner of this “ marks “ Oleg Kuvayev still anybody from commodity producers has not agreed. Masjanja - bright, easy temper, a bit cynical. This image can be extended to different categories of the goods. Besides, possibility to do “ umbrellas “ that is to let out the goods under own trade marks (private lable), is at large retail networks. For example, some of them (“ Ramstor “ “ the Crossroads “) already are engaged in it “.

the Instruction on use “ an umbrella “
the Question on, whether is necessary to the company an umbellate brand, it is necessary to solve proceeding from its plans and market conditions. For example, in the market of juice basically there are monobrands with linear expansion, on beer - too. But the markets konditerskih the products, the frozen products, dairy - in a greater degree umbellate. Meat products - too umbellate, but there move ahead not separate marks, and the general brand of factory - the manufacturer.

As experts in marketing speak, it is not necessary to expand the brand in those commodity categories where already there are strong brands - competitors: the risk of a failure is very great. Besides in this case expenses for advancement will simply eat the possible economy connected with use “ an umbrella “. And if the certain market nevertheless seriously interests the company from the point of view of profit reception it is better to let out a new independent brand.

In case the company all - taki has decided to let out “ an umbrella “ the technology can look so.

In - the first to make of mark an umbellate brand, its name and graphic design should be suitable for this purpose. For example, mark “ 33 cows “ difficultly “ To stretch “ on something, except dairy products.

in - the second, it makes sense to register the mark in different commodity categories even if you are not going to let out this production. Otherwise any companies can have a temptation to stick to a strong brand and to make “ an umbrella “ without the permission of its owner. For example, some years ago the beer company “ Baltic “ had legal proceedings with firm “ Metatobacco “ which has decided to let out cigarettes “ Baltic “. Now, speak, “ Baltic “ has registered the mark and in a category “ condoms “ (and British Virgin has patented the even on a class of coffins).

In - the third, the decision on brand expansion should be accepted, when it has already taken of a strong position in the market. According to Alexey Suhenko, it is desirable, that the indicator of popularity of mark among target audience made not less than 50 %.

However, too strong brand - for example, master brand (which associates with a certain grocery category; we will tell, mark Xerox - with photocopiers, and Coca Cola - with soft drinks) - it is hardly suitable for “ an umbrella “. According to experts in marketing, in this case any expansion of a brand will weaken its positions. So, history Xerox - a classical example of how it is not necessary to do. The company was the leader in a category of copy technics, but has decided to let out under the mark and computers though in this market already there were very strong brands, for example IBM. As a result of Xerox has essentially weakened the positions, and they then should be restored. Now Xerox positions itself only as the document company. It is curious that in due time IBM tried to get, in turn, on the market of copy technics, but this invention left nothing.

In - the fourth, it is necessary to define borders of expansion of a brand and to understand that it makes sense to let out in addition to the basic product. The results of researches answering on a question as the goods are grouped in consciousness of consumers will help with it. Usually experts in marketing use mathematical methods, such as klasternyj the analysis. For example, some researches show that in perception of people ketchup is closer to cξσρσ tkemali, instead of to mayonnaise, and wafers in chocolate - to chocolate, instead of to cookies. Ekaterina Dvornikova: “ One western author gives an example, when the firm which was letting out a toilet paper, has tried to adjust release under this mark also paper napkins, but has as a result lost positions in both markets. The matter is that from the industrial point of view it is the related goods, and from the point of view of consumers - different “.

After the company was defined with the new goods, it is necessary to master the production technology and to develop packing. As the general director of agency Media First Yury Malinin, packing of all goods not necessarily speaks should repeat literally, the main thing that it has been sustained in uniform style.

At last, one more important question - how to advance umbellate mark? Variants here a little - we will tell, to advance mark as a whole or any separate position. What of them will appear the best, unequivocally it is impossible to answer. Michael Dymshits, for example, considers that it is necessary to advance something one, more precisely, the strongest position of a brand: “ It is necessary to advertise the most sold goods in “ an umbrella “ the others cannot compete to it. And the general imidzhevaja advertising is less effective. It is necessary to recognise that the consumer it is inattentive, greedy and lazy, and if to it in advertising directly have not told that it is necessary to buy, he and will not buy “.

But as we already spoke even if all is made correctly, the result is all the same unpredictable. Victoria Kjufarjan, Twiga Advertising: “ the Success or failure of a brand does not depend on that, umbellate it or independent. It depends on the product and its quality, positioning, advertising strategy, packing and still variety of other nuances. Perhaps, positioning has been chosen wrong, and can, simply stars so have settled down “.