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Re: Barrier to entry.

From: Whiteside, John <John.Whiteside_at_CWUSA.COM>
Date: Mon 3 Apr 2000 14:10:07 -0400

PAUL WHITELAM WROTE:
> Maybe Richard Branson failed Branding 101. How else
> could Virgin Atlantic, Cola, Music, Phones, Financial
> Services, Holidays etc....be so successful?

Paul Whitelam talks about brand transfer, using Virgin
as an example.

My response:

You're right; brands can transfer. I said that they
generally do not transfer across ALL categories
(emphasis on all added just now).

Virgin has been very successful at extending their
brand into new categories, but even so, there are
plenty of categories they wouldn't touch because they'd
ruin the qualities that make the brand successful. I
wouldn't hold my breath waiting for Virgin Port-A-John
Service or Virgin Facial Tissue.

Whether these extensions make sense depends on what the
brand's characteristics are, and some are more
applicable to a wide range of products than others.
Amazon has rapidly become one of -- if not THE -- most
successful online retailer by almost any measure.
Failure to produce commodity household products under
their name is hardly a sign of weakness. On the other
hand, the examples you give for Virgin seem reasonable.

Does Virgin's brand awareness extend far past outside
of the UK? Over here they're known primarily as an
airline and music shop.

John Whiteside
Cable & Wireless
eMessaging Solutions
john.whiteside_at_cwusa.com
www.surecom.com / www.cwusa.com




Received on Mon Apr 03 2000 - 13:10:07 CDT


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