Thursday, July 17, 2008

Kaun 'Videocon'? The power of a brand name

This post is a short one. When business grows, the brand name starts assuming a god-like status-and-mention in the media. This of course gives a hedonistic feeling to label and sell every possible product under the same brand. There could be many other reasons but the one mentioned is good enough to explain many many brand extensions we see in the market place.

Our home-grown conglomerate Videocon is one such example. But what makes it stand out is the fact that the brand name is 'Videocon'. Isn't it apparent that 'video' in 'Videocon' stands for visual entertainment products? Clearly, being one of the first-movers in the Indian entertainment products industry, Videocon came up with a good brand name for its televisions and also for, now-extinct VCRs, and CD and DVD players. However, to put the same on washing machines, tape-recorders, micro-wave ovens and air-conditioners is not just preposterous but also downright suicidal.

That's quite a statement to make for me but that's the power of a good name. Applied at the right places, it works. But apply it to something that's not a match and you kill yourself. Videocon's share in the market in most of its product-categories has been going down and one of the big reason is its branding strategy.