Expanding a company with a strong brand name is risky. With Zippo’s product driven by people who smoke and with the push of not smoking, I think it is a good decision to broaden their product line.
I found it interesting they plan to start many of their new products overseas before introducing the product to the United States. It is wise to market to Asia because they are a key smoking target, this will develop the brand name and then branching out will catch on. I think they may be going too diverse; from leisure clothing to watches to cologne….I don’t think their product should be so vastly different, and they should stick to the brand core.
I agree with Jan, Zippo is really gambling by introducing a new product line of leisure items (clothing, cologne, etc.). Zippo will soon celebrate their 80th anniversary of manufacturing high quality cigarette lighters. But the number of smokers in the world has diminished over the last decade, so has the demand for Zippo’s core product. Zippo is diversifying into these new products based upon the marketing research that has been ongoing for over 10 years. Zippo lighters are branded as manly, rugged, and a smoker’s status symbol. Zippo is planning to use these same characteristics for marketing their new product line. I can understand why Zippo wants to broaden their product line, but I fail to see the correlation between cigarette lighters, cologne, jeans, and sunglasses. Perhaps Zippo will have luck marketing their new products in similar fashion to the Swiss Army line of products, but Swiss Army had diversified their product line when the economy was stronger. Presently, consumer confidence is weak. People have less disposable income to spend on overpriced jeans. I hope I am wrong, because I think that Zippo produces a top-notch cigarette lighter.
ReplyDeleteIn this weak exconomy it makes sense to tap into a strong brand like Zippo and use that as a competitive advantage. I don't think it is the wisest move to expand into these market at this time but if you must do it this is the best approach. Swiss Army and Jeep and others have done it so the trail is proven, but not easy. I too hope it works. I would have been happier to hear of a stronger national development presence.
ReplyDeleteInteresting, I immediately questioned whether Zippo could market anything other than something geared to a smoking community; however, when they cited Swiss it kind of provoked me. I've seen the Swiss luggage, etc. branded to be tough and rugged, I'm guessing if Zippo could tap into something close to that market, they might have a chance.
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