Sunday, December 30, 2012

Let Go of Irritating Brand Extensions

Say you had fine success in your store selling classic LEGO building blocks. Now the LEGO Group has come out with brand extensions using the LEGO name, many of them kits instructing the child how to build specific items from “Star Wars,” “Lord of the Rings,” and “Marvel Super Heroes” movies. Should you stock these kits?
     If you’ve the shelf space, it seems like an easy decision. When The Clorox Company decided to extend the brand name from bleach to disinfectant wipes, stores were wise to stock the wipes. And combining the sales power of the LEGO name with that of a franchise like Marvel Super Heroes seems bound to be, well, super.
     However, according to an article in last weekend’s New York Times, people are irritated at the LEGO extensions. The accusation: LEGO earned loyalty by selling items which fully engage the child’s imagination. There were always a few different building ideas in the instructions, and the notion was they were there mainly to get you started. In the theme sets, the instructions are for a one right way to join the blocks.
     With plenty of other LEGO brand extensions, it would be harder to build a case for imagination being hobbled: LEGO children’s books, stickers for art projects, and a board game. But okay, there are the LEGO video games.
     The question, affecting all retailers with limited selling space, is what distinguishes brand extensions your shoppers will welcome from ones which will irritate your shoppers. As it happens, the issue was studied by University of Connecticut researchers, and they used LEGO as an example. Here’s my version of the research results, in the form of four related sets of questions you should ask:
  • How well does this extension maintain brand standards and style? Degree-of-agreement items on the Connecticut researchers inventory included, “The standards of LEGO are apparently contained in this extension.” 
  • To what degree does the extension honor the brand heritage? “LEGO seems to have abandoned its roots with this extension.”
  • How well does the extension preserve the brand essence? “This extension captures what makes LEGO unique to me.”
  • Does the extension avoid brand exploitation? “With this extension, it seems that LEGO was more concerned with preserving the brand than growing the market.”
     If the brand extension you’re considering adding to your inventory doesn’t come up high enough on the qualifying criteria, let go of those LEGOS.

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