3 ms·

You can take a brand down-market, but it's very, very difficult to take it up-market. JCP stands a better shot at dominating the "discount" market, which every

by bpm140 14y ago

You can take a brand down-market, but it's very, very difficult to take it up-market. JCP stands a better shot at dominating the "discount" market, which everyone associates it with, than combating half a century of marketing.

MartinCron 14y ago
Or creating a new up-market brand, like Lexus or Banana Republic.
- kyllo 14y ago
  Which would be an extraordinarily expensive and risky marketing effort, but perhaps one of only a handful of possible ways to save the company at this point.
  - MartinCron 14y ago
    Yeah, I don't think it's a good or safe idea, but it would at least be exciting to see them try.
- robryan 14y ago
  They can't really do that unless they have some brand exclusivity. If everything else can be purchased elsewhere price is going to have to be a large part of a successful strategy.
- cpeterso 14y ago
  Creating a new brand is a classic move described in Ries and Trout's excellent "Marketing Warfare" book. The Gap is a great example of a company that avoids brand extensions. They have separate brands for low/medium/high-end clothing stores (Old Navy, Gap, and Banana Republic) and Athleta for sportswear. I'm not sure where Piperlime fits in, though. It was originally women's shoes and accessories, but now Piperlime also sells clothing for women and men. In the other direction, I think Volkswagen is making a big mistake with their brand extension from "the People's Car" to high-end cars. They are competing with their own Audi brand instead of reinforcing strong brand segments.
  - rdl 14y ago
    With cars there is some justification for overlap. Some people can't be seen driving a Lexus (or aren't allowed to buy them by corporate policy or whatever), or Audi, but Toyota Avalons at the same trim level and approximately the same price, or a VW Phaeton instead of a Mercedes S-class, would be acceptable. And other people who would prefer a stripper Audi to a luxury VW with better specs, just to be a "luxury car driver".

by bpm140 14y ago

MartinCron 14y ago

Or creating a new up-market brand, like Lexus or Banana Republic.

kyllo 14y ago
Which would be an extraordinarily expensive and risky marketing effort, but perhaps one of only a handful of possible ways to save the company at this point.
- MartinCron 14y ago
  Yeah, I don't think it's a good or safe idea, but it would at least be exciting to see them try.
robryan 14y ago
They can't really do that unless they have some brand exclusivity. If everything else can be purchased elsewhere price is going to have to be a large part of a successful strategy.
cpeterso 14y ago
Creating a new brand is a classic move described in Ries and Trout's excellent "Marketing Warfare" book. The Gap is a great example of a company that avoids brand extensions. They have separate brands for low/medium/high-end clothing stores (Old Navy, Gap, and Banana Republic) and Athleta for sportswear. I'm not sure where Piperlime fits in, though. It was originally women's shoes and accessories, but now Piperlime also sells clothing for women and men. In the other direction, I think Volkswagen is making a big mistake with their brand extension from "the People's Car" to high-end cars. They are competing with their own Audi brand instead of reinforcing strong brand segments.
- rdl 14y ago
  With cars there is some justification for overlap. Some people can't be seen driving a Lexus (or aren't allowed to buy them by corporate policy or whatever), or Audi, but Toyota Avalons at the same trim level and approximately the same price, or a VW Phaeton instead of a Mercedes S-class, would be acceptable. And other people who would prefer a stripper Audi to a luxury VW with better specs, just to be a "luxury car driver".