I remembered that saying when researching this column's subject: a new model Motorola cell phone, aerodynamically styled and Ferrari red. In fact, it sports the Ferrari brand. Soon I found other remarkable examples of Ferrari brand stretching - an Acer laptop computer with a case in that distinctive crimson and 'two rearing horses' label. Next, a Ferrari travel clock surfaced, featuring a dial meant to resemble a speedometer, the alarm sounding like an automobile engine. On its scarlet case, the Ferrari emblem is joined by the less distinguished mark of Oregon Scientific, the manufacturer. At first glance this approach might appear a sensible marketing maneuver to spice up your product line.
Another item looking like a nail appeared in these pages (Media, August 27). Helen Wing's "Brand extension is not a low-risk option" column said that stretches seem cheaper and less risky to launch according to conventional wisdom. But, warned Ms Wing, such hybrids, "are actually more likely to fail than new products".
Some years ago I visited a trade fair in Japan, where it seemed clever and considerate for one of the participants - I think it was Toshiba - to provide paper shopping bags for visitors to take away the reams of literature collected. The problem was that once a reasonable amount of paper had been put into each bag the bottom gave way. Now even though I knew that the bags would have been subcontracted for production to some offshore supplier, I shared a gut feeling with the other attendees: "Toshiba (if it was them) products are substandard." This conclusion is obviously illogical and unfair, but it was vivid and another example of how "low-risk, easy options can backfire".
Of course, the Ferrari examples are not so much brand extensions as franchises, which can be disastrous for both the user and for the brand's proprietor.
Rather than benefiting from the borrowed brand, the franchisees are diluting their own brands, causing identity schizophrenia in their target audiences.
Such a tactic smells of desperation and the double branding (Ferrari plus Motorola, Acer or Oregon Scientific) can end up cheapening the images of all concerned.
Remember Pierre Cardin? A prominent couturier, he sold his name to anyone willing to pay the licence fee to brand, say, umbrellas, socks, or, for all I know, mouse traps. Result: the Cardin mark became synonymous with tawdry, third-world goods.
The moral is stick to your own brand. Evolve and improve the products that bear it. Don't borrow an outside identity unless you don't care about your brand equity. If you want to stretch, do so organically. From haute couture to perfume makes sense. From racing car to a cell phone or travel alarm... frankly no.
Beware of easy fixes. While perhaps affording some short term benefit, they are usually a ruinous strategy.
Henry Steiner heads Steiner & Co, a strategic branding design consultancy.