Brand Extension Failure - Xerox Data System

Xerox's achievement - its brand name has become a part of everyday speech. In the United States, Xerox is a verb, used when people are copying paper. Xerox is one ofthe branding success stories ofthe 20th century.

Mumbai, India (prHWY.com) August 14, 2012 - As with many other similar successes, the company didn't just create a product, it invented a whole new category. Indeed, such is Xerox's achievement that its brand name has become a part of everyday speech.

Let us go through a Case Study which shows how a successful brand goofed up. Click here to view the Xerox Case Study. Post this let us attempt to answer the below questions.

Questions for discussion are:

1. Xerox became the brand that was even bigger than product itself & is used by most of us as a replacement for the word "Photocopy". Have you come across any such brands that have gone on to become bigger than the product itself?

2. Should the company get into an unchartered territory based on its success in its existing business or should it stick to its core competency?

When a new product, in an entirely new segment, is introduced and when there is a hidden need but no product availability for such a product one can see such phenomenon. There are many brands which almost represents their product category. And various reasons for which a brand gets converted into an iconic product category might be one of : Novelty or distribution.

Listing few from different facets of life-

* Maggi is so very synonymous to noodles. While the instant noodle category (invented by Momofuku Ando) was introduced and propagated by Japanese companies (noticeably Top Ramen), Nestle made it reach the Indian shores.

* IPODis another brand. Personal digital music players did exist before IPOD too, but IPOD was a game changer. Walkman (By Sony) is another such example which was a category in itself. While for the first the reason was distribution and reach and product design for the latter it was mainly novelty.

* Vicks in India with its blue-green packaging is absolutely a category in itself. Similarly we can say that Moov came with such distinct positioning that it too created a product category for itself.

* Google did the same with search engines. So much so that Google is more like a verb now.

Regarding the second Question: There are no hard and fast rules. Every company has a DNA and that is what defines it. A WIPRO might very well manage an FMCG/hardware business because of its DNA and history, but an INFOSYS remains better as a software firm. Same applied for Apple and MICROSOFT. Other factors that define whether a company should or should not is the competitor landscape, regulatory environment and support it can generate for existing business.I think the concept of Core-Competency though true has not been very well understood and prorogated. Core-competencies might not necessarily be a product space. It can be a softer aspect.

For example: Marketing and distribution is a strength of AIRTEL, so even when it doesn't own its core assets and has outsourced it, it still succeeds in the business of mobile telephony and satellite TV. And that is the thing that prompts Bharti to get into an unrelated category of Retail.

To know more on Branding, Marketing, Brand Failure Visit on Brand Failure | Casestudy.co.in

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Tag Words: infosys, wipro, xerox case study, case study

Categories: Business

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