As I’ve admonished anyone who’ll listen, the key to building a successful brand is to differentiate your company or offering in such a way that you stand out from competitors, and that your differentiator will be hard to imitate.
So, what do you think of those companies whose name states their prime business and then goes on to dilute their primary focus? Is this good branding? Does it differentiate or just confuse? It’s like being in thier prime business is just not enough.
I’m thinking of companies like Bed, Bath & Beyond; Brakes Plus, and Containers & More.
Did they rationalize that “more” differentiates them? Or were they afraid they’d miss customers if they really niched, so theyÂ “hedged their bets” with a name expansion?
Jack Trout, author with Steve Rivkin of Differentiate or Die, states that “breadth of line” is a difficult way to differentiate. It costs lots of money, competitors with money can copy this strategy easily, it blurs what the brand represents.
For really big box chains, having lots of inventory may be a customer plus in and of itself, but most of those stores – Home Depot, Pep Boys, CompUSA – never claimed to narrowly focus in the first place. Their differentiation is a combination of breadth of line, lower prices and customer service. Within their retail categories – home improvement, automotive after market, and hi-tech electronics – they can and do focus.
I’d like to hear from you on this subject: Is adding a name expansion helpful in establishing a solid brand? Does it dilute the company’s primary differentiator, or does it enhance it?