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August 5, 2009

Luxury Brand Naming on Ketchup?

Time Magazine asks us today if "BMW should sell ketchup," and the question is actually a good one.

In this down market, people seem more willing to spend money on small luxuries with known brand names than on big ticket items like, well, a BMW. Consumers like to see luxury names even on products that have nothing to do with the company's core offering.

This might explain why you can get items such as a Dunhill flash drive or an Armani TV made by Samsung or even a "My Dior" Luxury phone by Christian Dior.

But can luxury brand names be applied to consumables? Yes, and no.

Although, luxury brands names like Louis Vuitton are not ready to get into the cracker business just yet. They firmly believe that times will get better and some have noted that there are still many consumers who want to buy one $1500 handbag over five $300 bags.

That said, super premium denim brand names are starting to fade and even stalwarts like Coach and Tiffany have had to think fast.

Coach has a cheerful new product line called "Poppy," with price points 20% lower than their $290 average. While Tiffany has quietly lowered their prices on engagement rings by an striking 10%. Versace, Chloe and Chanel have all done the same thing.

The other tack has been to simply bling out the recession: note the new Moet & Chandon bottles you can personalize with Swarovski crystals, which might come in handy because there may be reason to celebrate.

Internet searches for Aston Martin and Mercedes Benz are up 33% over last year and Gucci is up 8%. And the Millward Brown 2009 Brandz survey shows luxury brands actually gaining value over the last 12 months - Rolex alone has enjoyed a 35% increase in the value of its brand name.

So I'm guessing that we won't see a BMW ketchup anytime soon, even though it would probably race off the shelves.

Technorati Tags: Luxury Brands, Luxury Naming, Luxury Brand Value

Posted by William Lozito at August 5, 2009 9:41 AM
Posted to Brand Architecture | Brand Naming | Branding | Naming | Product Naming

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