Image fit and business fit are important in unrelated extensions as well. But here the image of the organization itself is as important. In some way successful unrelated extensions are closely linked to the history of the development of industry in India. This is demonstrated by the growth of Tata and Godrej brand in the past. Both Tata and Godrej have been among the first few Indian brands to be known to the consumer. Besides, the commitment of Tatas to quality and employee welfare (TISCO) and Godrej to product innovation (use of vega table oil instead of animal fat for making soap) is well known. When Tata branded salt or when Godrej branded safe they were among the first to do so. Thus unrelated diversification is more likely to be successful if the brand possesses.
- Early entry advantage
- Equality image
- Respected family or organizational name
The unrelated diversification of Wipro is of more recent origin. Wipro started with vegetable oil and successfully moved into computers. (WIPRO means Western India Vegetable Products.) They were equally successful in their forays into lighting and soaps largely due to organizational commitment. Both lighting and soaps businesses need extensive marketing investments (brand building, distribution, etc.) and without organizational commitment Wipro would not have fared well in either category. It may be worthwhile to note that Wipro is currently running a corporate campaign on the theme “Applying Thought” in an attempt to probably ensure that all its products are perceived as offerings which are offered with great care and commitment.
Brand extension, to be successful, needs – (a) organizational commitment (b) image fit or consistency of brand personality between the parent and the extension (c) business fit (d) deft management of the marketing mix of the extension and (e) relevance to the consumers.
