6 posts categorized "Winner & Loser of the Year"

Laura's Best Baby Brands

Baby_brendan

Babies bring joy to our lives and many new brands into our homes. I've had a lot of experience with baby brands in the last six years. As a Mom and a marketer it has been fun to evaluate them on both levels. I have watched the rise of lots of exciting new brands first hand. Here are my picks of the best brands.

You will notice that all the best new brands have several similar elements in common:

1. First in a new category.
2. Great name.
3. Tons of PR.


Bobbyblue_2
Boppy
$35.00 at Babies R Us

The most popular shower gift in America, Boppy is the must-have tool for all new Moms. The breast is best, say most Doctors, and Boppy makes it possible. I had one in every room I fed my baby. So I never had to reach too far when I heard a scream.

Designed with ergonomics in mind, Boppy provides support to reduce strain on your arms, shoulders and neck. It also can be used for propping a baby and allowing for tummy time. But its main focus is helping Mom’s feed their babies comfortably.

Drbrown3
Dr. Brown’s
3 pack is $14.00 at Wal-Mart

For working Moms that breastfeed, a good pump and good bottles are a must. So I lugged my Medela “pump in style” breast pump all over the world from South Africa to India. But Medela doesn’t make my list because while it is a perfect pump it is a terrible brand. The name alone gives it little chance for success. I still can never remember it or how to say it.

While Medela did a lousy job of branding, the opposite is true of Dr. Brown’s. Dr. Brown’s initially focused on helping babies with colic. The bottle’s patented design helps with reduce air in-take a main cause of colic. Of course, what parent even wants to take a chance with colic. Like many parents, I used these just in case. And once you and your baby get attached to a bottle you seldom change.

Dr. Brown’s started as a narrowly focused specialty product but is now mainstream, not because the product expanded but because the consumer upgraded.

Dr. Brown’s is great example of using personalization in a name, like Papa John’s Pizza or Dell Computer. The name really gives credibility with this product, reinforcing the advantage of having the bottle designed by a doctor. (A kindly grey haired Dr. Brown comes to mind immediately.)


Silver_bugaboo_cameleon
Bugaboo
$899 at BabyStyle

Best known for tulips Holland is also the home of great design. Bugaboo innovative strollers from the Netherlands are both functional as well as beautiful. Many times a hot brand will upgrade the whole category.

What Dyson did for vacuum cleaners, Bugaboo has done for strollers. While every other manufacturer was trying to make a stroller/car-seat combination, Bugaboo made a streamlined stroller with a look that appealed to parents not kids.

Seeing a Bugaboo for the first time certainly makes a lasting impression. When I first got mine, people would stop me all the time.

Robeez
Robeez
$33.00 at Zappos

While most baby shoes are cute tiny versions of adult/kid shoes, Robeez are different. Robeez are designed especially for babies and toddlers. Barefoot is best for growing feet (according to most doctors and podiatrists) but babies’ feet also need protection and warmth. Robeez have thin soles, stay in place, are flexible and lightweight. As a result they are durable, breathable, skid-resistant and safe. Robeez is the doctor-recommended perfect first shoe. And with all the unbelievably cute designs, you hope your baby stays little just a little bit longer so you can buy more.

Bumbo20baby20sitting
Bumbo
$40.00 at Babies R Us

A huge problem is that babies can’t sit up. Having to lie on your back or stomach all day is tough. New parents don’t realize how long it takes (at least 8 months) before a baby has the muscle strength to sit up. Bumbo offers a revolutionary seat that enables babies to sit upright all by themselves as soon as they can support their own head (around 6-8 weeks.) Bumbo is a brand are built by taking branding risks (not safety risks) and doing what nobody else has done or even thought of before.


Webkinz1
Webkinz
$8-$15 at Amazon

Webkinz are not the same as your older sister’s Beanie Babies or your mother’s Cabbage Patch Dolls. Webkinz aren’t just a copy of the last toy craze they are something totally new and different.

The key to success is being first in a new category. Webkinz are the first stuffed animal that also lives in an exclusive virtual world. After ripping the code off the leg that allows online access for the pet on Webkinz.com kids basically throw the animal in the corner hardly to be played with again.

While many adults have checked out Second Life, millions of kids have stampeded to Webkinz World.

Croks
Crocs
$31.00 at Zappos

Looks aren’t everything. These funky-looking plastic shoes sure don’t look pretty, but wearing them is comfortable and contagious. When seeing a pair of Crocs for the first time, you think what are THOSE on your feet? The shock factor has greatly contributed to the Crocs craze. They are perfect shoes for kids since they are cheap, easy to wear and practical. Plus you can customize and decorate your Crocs to your heart’s content with Jibbitz (a nice second brand from Crocs). And at $2.50 a Jibbitz, that is money in the bank for Crocs.

Monkeyjoe_logo
Monkey Joe’s
Around $8 to play, Nationwide in the U.S.

In the 80’s every kid wanted to go to the fair to jump on the Moonwalk. In the 90’s every kid wanted to have an inflatable slide on their lawn for their birthday party. Now every kid wants to play every day at a Monkey Joe’s and have their birthday party there too.

Monkey Joe’s is the first chain (in the mind) of indoor inflatable playgrounds. Many companies have gotten into this emerging market, but Monkey Joe’s is the best because it has the best brand. Jump Zone? Way too generic. Too many companies that launch brands in new categories opt for a descriptive words when the best strategy is a new word (Bugaboo) or words used out of context (Monkey Joe’s).


As my kids move into school there are so many new brands to discover. We are all looking forward to the adverture of it.

5 Best Line Extensions of 2007

What is a line extension?

Taking a brand name in one category and using the same brand name in another category. Example: Tostitos are tortilla chips and now they make Tostitos salsa.

Top 5 Line Extensions of 2007

Idol_camp

5. American Idol Camp

An extension of the hottest reality show on television. Now kids 10-15 can live their dream and learn about the music business from the pros.


Virgin_america

4. Virgin America Airlines

An extension of Richard Branson’s successful Virgin Atlantic Airlines. Virgin America has a unique and focused position (low-fare, long-haul airline servicing the coasts) with a coolness factor of 10 and Sir Richard to boot.


Newman1031_2

3. Newman’s Own Wine

Paul Newman started with Newman’s Own salad dressing in 1982. And today Newman’s Own sells a wide variety of products that are focused on being better for you and better for others with 100% of the companies profits being donated to charities.


Curves_2

2. Curves Cereal

An extension of Curves the hottest brand in fitness and largest chain of gyms in the US. Many women include cereal in their diet plan. In a category with many small brands Curves on the box makes the position crystal clear.


Petshotel

1. PetSmart’s PetsHotel

The way to win is by being first. PetsHotel is not the first doggie hotel, but it is the first national brand. Budweiser was the first national brand of beer.

PetSmart has the brand savvy, operational expertise and real estate connections to make PetSmart a big success. If there is one thing we love more than our kids, it is our pets, and in some cases even more.


Why do some line extensions work and others fail?

Line extensions can work when a brand moves into a complementary category that has weak competition.

Virgin Cola didn’t work because Virgin is an airline and has no credibility in cola. And Coke and Pepsi are such dominant brands there is little room for anybody else even if Richard Branson will jump off a mountain naked to promote it. Same for Virgin vodka, Virgin wedding dresses and most of the crazy Virgin line extensions.

Many people assume we are against all line extensions. Not true. Most are foolish, faulty or forgetful. But some succeed and are savvy business moves. Sometimes a brand is so powerful it is OK to dilute it with expansion especially when the competition is weak.

Just remember, the real power in branding and business is in launching new brands.

The Good, the Bad and the Smelly

Dunkin_3_2

The past two days I have been up early to appear on Fox Business' "Money for Breakfast" to count down my top 5 line extension winners and losers of 2007 or "The Good, the Bad and the Smelly" as I refer to them. I'll start today with the losers and follow-up later this week with the winners.


What is a line extension?

A line extension is taking a brand name in one category and using the same brand name in another category. Scott used to be just a toilet paper. The number-one brand in fact. Today Scott is into everything:

• Scott toilet tissue
• Scott napkins: Scotkins
• Scott paper towels: ScotTowels
• Scott facial tissue: Scotties

Line extension killed the brand. No longer is Scott the number-one brand of toilet tissue. Today Charmin is the number-one brand. While well-known, Scott is a meaningless brand in the mind because its name is on everything.

Put Scott on a shopping list and what do you buy? I put Coke on the list; I buy Coca-Cola. I put Charmin on the list; I buy toilet tissue. I put Scott on the list and what do I buy and where do I use it?


Are different flavors a line extension?

Line extensions are sometime confused with flavors and varieties. Vanilla Coke is a flavor and Diet Coke is a line extension. There are lots of varieties of Tostitos chips. But Tostitos salsa is a line-extension.


Why do companies line-extended in the first place?

It’s the cheapest way to introduce a new product. You don’t have to spend millions of dollars on advertising establishing your brand’s credibility because everybody already knows your brand name. That’s why 90% of new supermarket brands are line extensions.

Unfortunately most new brands fail. It is especially confusing when you have the same brand name in two different categories. And long term, line extension it can damage the core brand by undermining its meaning in the mind.


But if they didn’t line extend how would companies ever grow?

Instead of always thinking how to line extend, companies should think more about launching second brands. Many line extensions represent a missed opportunity. Toyota could have sold many expensive Toyotas, but they would have missed an opportunity to launch the Lexus brand which today dominates the expensive car category. Lexus is much more valuable than the sales that might have been generated by an expensive Toyota model.


The 5 Worst Line Extensions of 2007


Playdohleft

1. Play-Doh Cologne.

Hasbro says the fragrance is "meant for highly-creative people, who seek a whimsical scent reminiscent of their childhood."

Play-Doh does have a unique and different smell, but I doubt too many adults want to smell like Play-Doh. Kids play with the stuff despite the bad smell, not because of it.

What is next Eau de Huggies?


Hooters_energy_03_2

2. Hooters energy drink.

Hooters is known for boobs and chicken. The brand has no credibility in energy.

Just because everybody is doing it is not a good excuse to launch a line extension. Today there are hundreds of energy drinks. In order to succeed, you need be first in the mind and have a good name. Hooters has neither.


Jeffgordonwine2005

3. Jeff Gordon fine wine.

Don’t the wine makers attend any NASCAR races? I have been to several since moving down to Atlanta. And while I have seen a lot of beer consumed, I have never seen a glass of fine wine consumed. Wine and NASCAR go together like water and motor oil.


Disney1

4. Disney wedding gowns.

As a wedding destination Disney has had some success. Disney World is a great place to visit, and many weddings are part family reunion these days so in some ways a Disney wedding makes sense. I have been to a wedding at Disney, but having Mickey Mouse and Goofy characters dancing with the guests is not my cup of tea.

I just went to a Cinderella party for a three year old. And while little girls loved to dress up as Cinderella, I don’t think 25-year-old really girls do. Not too many brides want to look like a cartoon character on their wedding day. Looking like Princess Diana is one thing, a Disney Princess is quite another. A G-rated wedding night is not a fairy tail ending.


Trumpsteak_2

5. Trump Steaks, Trump Vodka, Trump Rugs, Trump Water, Trump Cologne, etc. etc.

Trump is the most line-extended brand in America today. The Trump extensions are novelty items. They might sell a few in the short term, but long term Trump Vodka/Rugs/Water will never be a big deal.

Of course, all Trump extensions are licensed. So Trump doesn’t stand to lose any money on these deals, he just gets a cut if they sell. Which, in the case of most of these won’t amount to much.

Weddings and Funerals

This has got to go on record as one of the craziest line extensions ever.


The world’s most famous wedding-dress designer apparently thinks she can follow the bride right from the altar to the matrimonial bed. Vera Wang has teamed with Serta to sell designer mattresses for $3,000 a pop. For less than the cost of one of her dresses, at least you can rest assured you will get more than one use out of the bed.


Whenever you read a press release that says, leading “XXX” maker has now created a “lifestyle” brand and introduced “YYY.” watch out. It means leading XXX maker is diluting its brand and could be headed for trouble. There is no such thing as a “lifestyle” brand it is just a fancy word to try and justify absurd line extensions.

On the other hand, a former client of our has hit PR gold today with a front page story in the New York Times style section. We worked with Mark Duffey to name his brand and focus his company to create a new cateogory to be first in. Everest is the first nationwide funeral concierge service. For $995 or a monthly subscription fee Everest Funeral Package helps customers plan their final rites, providing concierge services that range from writing obituaries to negotiating prices with undertakers across the country.

Everest_1 

We are so proud of Mark and all he has accomplished with the Everest brand. Look for him on a Today Show segment soon.

http://www.nytimes.com/2006/07/20/fashion/20funeral.html

Brand Winner & Loser of 2005

Razr_1 Winner: Razr

The Razr is the only cellphone is focused on being a phone. It is small, sleek, stylish and selling like crazy.

Since unveiling the handset in November 2004, Motorola says it sold 12 million Razr phones worldwide as of October 1. More than half of those sales, 6.5 million, took place in the last quarter. That is despite the fact it was only made available last month to Verizon customers.

As a Verizon customer, I bought mine the other day as soon as I realized they were available and found the store selling them like hotcakes.

Motorola has re-pioneered the small phone where every other phone company has been busy adding features, size and bulk.

But not all is perfect. Motorola struck out with a brand called Rokr, a product that tried to combine a cellphone with an MP3 player. The brand fell flat with the critics and consumers.

In the end, if Motorola keeps the Razr focused on phones and forgets the silly convergence ideas, they will keep a winning brand in my hands and maybe your hands for a long time to come.

Budweiser_select_budbottle Loser: Bud Select

I thought about selecting the Green Bay Packers as the worst brand of the year. (My husband’s parents grew up in Green Bay and every game day drive from Peoria to watch the Pack play at Lambeau Field. My father-in-law’s favorite story is that my husband Scott was in-utero during the famed Ice Bowl in 1967.) But 2005, with Bret Farve on his last legs, was not a good year for the Green & Gold. Although adding insult to injury about the Packers on my blog would likely lead to a Brown family excommunication.

So instead, my choice of the worst and craziest brand this year is Bud Select. Does the world really need another flavor of Budweiser?

The answer is no. How many flavors of Bud can they dream up anyway?

Let’s take a recap of the selection so far:

Budweiser

Bud Light

Bud Ice

Bud Ice Light

Bud Dry

and now Bud Select.

Bud Select is by far the worst of the line extensions at Anheuser-Busch. A close second and third goes to Anheuser World Lager and Be; but I just don’t have time to go into the craziness of those extensions at the moment.

The other Budweiser extensions (Light, Dry, Ice) suggest flavor variations. Bud Select suggests that all the other flavors of Budweiser, the “unselected” ones don’t measure up.

Why knock Bud Light, the largest-selling individual beer brand in America? Let Miller do that.

The problem is, Miller has been doing just that. But introducing Bud Select only gives Miller more fire. Bud Light must be a lousy tasting beer if they need to introduce a better-tasting beer called Bud Select. Bud Select just adds more water to the Budweiser brand pretty soon they might as well call it Evian.

Airborne Honorable mention: Airborne

Airborne, the folksy cold-prevention remedy invented by a second grade school teacher hit sales of $90 million in 2004 and more than doubled that in 2005. Without any advertising but plenty of PR, word-of-mouth and celebrity endorsements, the brand has become a blockbuster. The tipping point seemed to be an October 2004 episode of the Oprah show which spotlighted the brand. Sales for the brand on Drugstore.com jumped 700% the next week. Beginning this year with new competition hitting the shelves, the company has begun a reported $20 million advertising effort. Using PR to build the brand with a wonderful credible spokesperson like teacher/developer Victoria Knight-McDowell and waiting until the brand takes off to advertise is always the right way to go.

Myself like many others have become passionate about the brand. I will be traveling a lot in 2006 and I won’t be going anywhere without out this little insurance tonic.

Biggest Brand Winner & Loser of 2004

With the start of a New Year only days away, I thought I would join the many who look back at 2004 and pick the winners and losers of the year. So after much thought I would like to honor two brands with the distinction of Biggest Brand Winner and Biggest Brand Loser of 2004.

BIGGEST BRAND WINNER of 2004: Apple iPod

Ipod

The brilliantly branded, designed, and advertised iPod is my clear choice for Brand Winner of the year. The product is brand divergence at its best. A single focused device that was conceived to be the very best music player period. It also helped pioneer the hard-disk-drive-music player category. Today’s music player of choice, thanks to Apple, is the iPod.

Through the third quarter of 2004, Apple has sold 6 million iPods, since they were introduced in 2001. The last quarter alone, they moved two million units. Estimates indicate that Apple could sell up to 3 million iPod in the fourth quarter of 2004. And the number would be higher if Apple could just make the hot-selling Apple Mini fast enough. Currently, 65% of all MP3 players are iPods, while 92% of all hard-disk-drive players are iPods.

Why did Apple succeed music players where so many others failed in?

In a word focus.

You know I don’t favor advertising for brand building. And when advertising is used, it should reinforce the brand message. And that is exactly what Apple did. They first used PR and a slow roll out of the iPod brand. Then Apple used advertising to accelerate the wild success of the iPod. The campaign was brilliant in its simplicity. Just silhouettes of people and an iPod. Over and over again in print and television advertising. There is nothing more to say. Except here is the iPod. People already knew what it was and how cool it was from word of mouth and PR. The advertising just reminded people. Perfect!

What should Apple do in 2005. Well they might consider getting out of the PC business and focus the whole company on iPod.

BIGGEST BRAND LOSER of 2004: Coca-Cola’s C2

Cokec2 What were they thinking? Second only to the lunacy of launching New Coke back in 1986 was this year’s introduction of C2. C2 is a mid-calorie soda which has half the sugar and calories as regular Coke, C2 was Coca-Cola’s major new product of the year. The thinking goes that there are some people who enjoy a regular Coke sometimes, but also are trying to lose weight on low-carb diets, and don’t really like the taste of Diet Coke. So Coke makes a half-and-half product called C2. Mix one part real Coke with one part Diet Coke and there you have it.

What must have seemed like a bright idea in the boardroom has fizzled on the market. Consumers didn’t get it, didn’t want it, didn’t need it and rejected the whole idea. Note too, that Pepsi is not immune from stupidity and this year introduced Pepsi Edge, their mid-calorie soda to the same dismal results. According to recent statistics from Beverage Digest, C2’s share of supermarket soft drink sales was 0.4 percent though early October. Pepsi Edge was 0.3 percent.

But it’s Coke that deserves the title of Biggest Brand Loser of 2004. The most valuable brand in the world (according to Interbrand.com) should know better. Coke is a company in trouble. They have line extended Coke to death and have not had a successful new brand launch in 40 years since the introduction on Sprite. They have been line extending and introducing me-too products that have been unable to compete with the first and leading brand in the category:

Dr Pepper, the first spicy soda, is a success, Mr. Pibb from Coke is not.

Mountain Dew, the first high-caffeine citrus soda, is a success, Surge from Coke is not.

Gatorade, the first sports drink, is a success, PowerAde from Coke is not.

Snapple, the first all-natural beverage, is a success, Fruitopia from Coke is not.

Red Bull, the first energy drink, is a success, KMX is not.

So goodbye to 2004, thanks for the memories. I look forward to seeing what’s in store for branding in 2005.

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