brand power – Opus Magnum
Browsing Tag

brand power

Newsroom, OCB Commentary

Abusing a strategic asset – Kirkland Signature of Costco

This post is by Evening UST MBA student Vitaly Demin, a strategy consultant at Eames Management Group.

abusing[1]I knew that the Kirkland Signature brand was being stretched beyond possible but I never really thought how bad it was till recently. I was at a Costco store the other day and I bought a $20 Robert Mondavi cabernet. As I was checking out, I asked their wine person if it was good and he said yes. Then he added that I should also try a Kirkland cabernet which is priced a little higher, at $30, but is really good. I said – a Kirkland wine at $30? He said – Yes, and please don’t be confused by the name… and that’s what got me thinking. There are certain things that you just can’t do to a brand.

Kirkland Signature is being positioned as a superior brand and it’s a great strategy and I’m sure it works for Costco but you still cannot stick it on everything. Moreover, the more high-end a brand is, the easier it is to destroy it by stretching it. Most executives don’t believe in this but it always happens. There’s always a short run for a brand that keeps it going while it’s being milked but eventually it’ll get damaged to the point of no recovery. Costco did a great job on building this house brand and it’s an extremely valuable strategic asset but if they keep managing it like this, may be 2-3 more years and it’ll start losing its brand equity because people will no longer take it seriously. It’s ok to have this brand on groceries or batteries but it’s not ok to stick it on a bottle of wine, especially an expensive one (leave alone shirts and some other product categories).

Think about it this way. Continue Reading

Media, Newsroom, OCB Commentary

The power of one – what Droid could have become

This post is by Evening UST MBA student Vitaly Demin, a strategy consultant at Eames Management Group.

android_makers[1]Earlier this year I posted an article about how phone manufacturers were losing their brand power by producing too many different phone models. Looks like the situation is only getting worse. I compared the iPhone with multiple phone makers that were building Android-based smart-phones to show the contrast between how one single brand is stronger than many. It seems like the companies are still not getting it.

There was one name that could have become a strong brand and make a huge competitor to iPhone – Droid. But before it could get to that point, phone makers let it roll down the hill and by now pretty much killed it.

Continue Reading

EveningMBA, Media, Newsroom

Losing brand power – big picture for phone manufacturers

This post is by Evening UST MBA student Vitaly Demin, a strategy consultant at Eames Management Group.

android_makers[1]What started happening 2-3 years ago in the mobile phone industry absolutely redefined the entire game. iPhone and Android were the ones who changed it. The two questions here are: do mobile phone makers see the big picture of what happened and where this is all going and are they doing something to save their once very strong and powerful brands?

Back in time when first mobile phones came to market, it was all about hardware and design. Nobody really cared about the software piece because it was very basic. All that people used cell phones for was making calls and sending text messages (and sometimes bragging). Things that mattered at that time were reception quality, battery life, pre-loaded collection of ringtones, black and white or color screen, etc. Then mobile Internet came and software became a little more significant because of web browsing quality, email, etc. but people still cared more about features like Bluetooth, bigger screen, camera, EDGE versus GPRS, mp3 player and so on. Even when Windows Mobile OS hit the market 10 years ago, it was still hardware that mattered the most. The mobile phone makers had all the branding power and were on top of the game. Continue Reading