Particularly in large businesses they are coming more and more to the conclusion that investments into brands are only then ensured in the long run, if brands are delivering a traceable performance. Whereas we have to mention, that currently this performance does most of the time not include a return on the brand value. One is content, when the impression exists that the sales taking place bring about a higher added value due to the brand.

Another reason for retiring brands is the realization that not everything that is called a brand actually is a brand. The question, what actually should be allowed to assert the claim to be a brand, has been debated and the opinions of the ‘learned man’ are divided. We say a brand has to possess 7-elements: origin, history, profile, positioning, image, awareness and protection. Only strong brands can survive the rough climate of competition and this is why one should only invest and trust in brands, if the spent money flows back.

The dialogue with the consumer shows last but not least, that he only maintains lasting relationships to a select number of brands. His knowledge of brands is proportional. Only in rare cases does a consumer remember more than 5 brands within a product group from memory, without being prompted with the help of market studies, where market knowledge is being analyzed.

Since all markets nowadays are demanding new products and the development of new brands costs a lot of time and money, the companies are forced to utilize strong brands on a broader basis. We think brand transfer is possible and the risks are acceptable if the new products can be inserted into the living space of the brand personalities to be appointed. However, it is important that all 7-elements of the brand are equally pronounced. For instance, a high level of awareness is no guarantee for success. We often find that in the fashion industry. Even though nowadays fashion consists of products such as perfumes, shoes, bags and glasses, many fashion brands with emphasis on textile fashion fail, when they try to market a perfume.

It is crucial that a brand personality is allowed the competence it needs to occupy a new product segment. Years ago, when news came out that the brand Davidoff is going to be introduced into the fragrance market, even experts felt that a cigar brand could not be convincingly representative of a perfume. It could, as the sensational success proofed, which has been lasting for years now, because Davidoff represents not only good cigars, but also a high standard way of life, for quite some time now.