Extend Cautiously When Shelf Space Is Limited

In the early 1980’s, the United States Postal Service—the only retailer specifically mentioned in our Constitution—stopped directly receiving taxpayer dollars and was expected by Congress to become self-sufficient. During this USPS transition, I was doing training with USPS managers in Washington, DC.
     Along with other elements in my SWOT (strengths, weaknesses, opportunities, threats) needs assessment, I discussed the use of “electronic mail,” which was at the start of chipping away at postal mail usage. After this training day, two of the managers came up to me to voice an objection. They said that the word “mail” rightfully belonged to the USPS. They asked me to consider using the term “electronic transmission” in my seminars to refer to what’s now known as email as well as to fax, which was already at this time a clear and present danger to the fortunes of postal mail.
     The dance between the USPS and digital technology continues. In a press release last week, the agency announced they’re launching apparel and accessory product lines under the brand name Rain Heat & Snow. This name was inspired by the Postal Service’s unofficial motto, “Neither snow nor rain nor heat nor gloom of night stay these couriers from the swift completion of their appointed rounds.” The press release didn’t mention anything about stopping Saturday deliveries, though.
     Where’s the digital technology angle? Well, the clothing, to be manufactured by Cleveland-based Wahconah Group, is to come with wiring so the wearer can plug in their electronics.
     Wahconah wants to place the merchandise in department and specialty stores. NPR says Nordstrom is a possibility. Would you carry these items, or the USPS-branded mugs and neckties the agency brought out in the 1980’s?
     When deciding whether to include such brand names in your store’s limited shelf space, you’re walking into the well-worn consumer psychology research area of brand extensions. A general finding is that the extension should fit with the image of the brand personality. Nike probably would do better with treadmills than with cosmetics.
     In their look at the issue of poor fit, researchers at Rutgers University, California State University-Long Beach, and Ohio State University uncovered the existence of Kodak pianos and Buick aspirin as misappropriated brand names. At the other extreme, flashlight and battery maker Dorcy is using the Diehard name, licensed from Sears Holdings, which had built strong associations between the name and car batteries.

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