Thursday, December 29, 2005

Wasting Away

I talk a lot about my hero, Warren Buffett. Warren has a famous cousin named Jimmy. Jimmy Buffett's music evokes a laid-back, no worries lifestyle. You think of water, boats, and frozen drinks when you hear his music. His music is a brand and he's made lots of money off the brand.

Brands get greedy when they get really successful. The brand gets caught up in itself and thinks it can use its identity to create new markets. Only two things can happen when you attempt to cross market your brand.

1. The market that the brand originally dominated is eroded.
2. The image of the brand is sacrificed.

Jimmy Buffet is no different. He became famous for playing music, but today he does all of this:

- Licenses the franchise rights to 24 Cheeseburger In Paradise restaurants
- Operates 13 Margaritaville Cafes and Stores
- Sells Buffett footwear through department stores throughout country
- Licenses microwaveable seafood products sold in grocery stores throughout country

There are no tour dates set for 2006. His music has to slow down in order for him to attend all the functions required by the different arms of his new empire.

A brand can only represent one specific thing. It can't be everything.

TwoMaids is a brand. One day, a lot of people will attach "customer service and housecleaning" to the brand. At that point, we could start manufacturing TwoMaids cleaning products or we could license our name for apparel such as aprons. But we won't. We'll just keeping cleaning houses. And we'll keep dominating our intended market.

I wonder what Jimmy's cousin would tell him?

No comments:

Post a Comment