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February 2006

Comments

Vera

Cool! Very good site!!! For example sites: http://audi-a5.drspages.com/ and http://www.a5.carmodels.us/ ! Good Lock! All new bmw car models is splendid!

Vikta

I want to notice that in general and is whole like all OK, though there are also some defects in registration and colour scale. If to compare this site to another: http://www.5-accessory.50megs.com/ or about these here for example: http://www.a5-parts.carmodels.us/ the design last to me is more pleasant.

Vita

Hi!! Today read clauses about novelties in the field of mobile communication ( this - http://www.d600specs.bravehost.com/ and this - http://www.freewebs.com/d600-specs/ ). I want to notice that progress does not cost on a place... By, good work!

Jim

Apple just launched a new ipod hifi boombox to reinvent the home stereo. What do you think is this extention wise choice by apple?

brad kaplan

I agree with the concept of focus, but there is one big caveat here - the brands you are talking about (Apple, Motorola) are corporate umbrella brands. The Apple iPod brand has a halo on the Apple Mac brand because they are both Apple, so supporting one can still support the whole.

For a company with multiple brands that share no strong corporate umbrella brand, that link is obliterated. Think Pantene and Pampers for example. No relation... putting a big effort behind Pampers will in no way halo onto Pantene. For a multi-brand company like P&G, or the Gap, or YUM, there can be a benefit to focus, but not the one you point out in your post.

Vikta

I want to notice that in general and is whole like all OK, though there are also some defects in registration and colour scale. If to compare this site to another: http://www.d600-specs.50megs.com/ or about these here for example: http://www.d600-buy.itgo.com/ the design last to me is more pleasant.

Paul Hotze

Laura,

Great article! I love seeing an underdog make such a great come back. Apple finally found their niche by marketing their products as a lifestyle. Owning an Apple means your hip, cool and creative. Meanwhile Dell simply competes on price. Dell wants to sell you a computer, Apple wants to sell you a lifestyle. No one in the industry has even touched on that.

Laura, another brand I would like to hear you give your analysis on is Target. I think they have done an awesome job differentiating themselves from Wal-Mart.

Love,
The Hotz(e)

Arnold Seefeld

Hello Laura, great post about focus and like Darren already said it, it's so obvious.
The iPod was a new brand differentiator for Apple as well as RAZR for Motorola. Both examples have in common that it's a combination of corporate brand and a sub-brand. This makes it possible to actually focus on some or only one sub-brand to enhance the corporate brand. If your portfolio consists of many different brands which are not directly connected (most often seen in FMCG market), it isn't that easy anymore. Focusing on one brand means to leave the other brands on their own. Do you agree?
Nevertheless in times of small budgets or saturated markets it's necessary to focus. Then, the supported brands (which would be in your examples the different product categories) are the ones with highest sales. The exception of course are innovations who shall play a major role in sales in the future.
But then, why should a company have brands which aren't supported by activities (not only advertising)?

ray

The title "Apple put all the chips on white" is appropriate; As it is when playing some card games, until your strategy comes to comes fruition (which more often than not, takes longer than you had planned) you need enough money to stay in the game ("staying power").
Focus AND "staying power".

Darren Contardo

Great insight because it's so simple. Everybody knows that focus pays off. Focusing your stock portfolio can yield the greatest returns, focusing on your relationship can make a world of difference, focusing on your drive for golf can drop your handicap, and focusing on one brand can increase the bottom line.
I manage five world-leading brands and know that if we put our eggs into one basket, they'd hatch and continue to grow. Unfortunately, most companies are risk-adverse, so they spread themselves thin, protect against potential losses, and play it conservatively. If you want an example of a great brand that doesn't try to create new SKUs to capitalize on new segments, take a look at Red Bull. Two SKUs = over $1 billion in sales.

Laura

Forget the losers, but them out to pasture. Focus all your resources on the winners.

You are right Mack so many companies we work with prop up the losers with the profits of the winners.

It is one of the great mistakes of buisness today.

Mack Collier

"Focus. Make your best horse a big winner and the whole barn will share in the glory."

Great quote Laura. There's so many companies that take the funds generated from a profitable division and throw the cash at a languishing area, which drags the entire company down.

Jim

Great article. If you look at Apple's commercial from super bowl in 1984. The woman running in the commercial wears a ipod. This realy shows that Steve Jobs knows exactly what's the next step for the company is.

Laura

XM is struggling, they recently signed up Oprah to try and build some PR momentum, but I think it is too little too late. Plus as Stern has been telling everyone, Oprah will not be showing up for XM radio, her connection to Oxygen has done will to help that station. Stern is 100% behind the promotion of satellite radio and Sirius is 100% behind Stern. Oraph is 100% behind the Oraph TV show and Oprah magazine. Unless she is in the studio and doing a live show for 4 hours everyday like Stern forget her helping XM at all.

Dan

I am going with Sirius and Howard. After Stern’s $500+ mil contract is up, nobody will remember XM Radio.

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