Monday, May 24, 2010

Branding: Resurrecting an old brand

The other way to enter the market is to resurrect an old brand. A good example of this is  Motobecane USA (pronounced Moto-becan and rhymes with pecan). Motobecane was a French manufacturer of bikes and motorbikes for many years before they went bankrupt in the 80s. The brand was resurrected as Motobecane USA very recently and now the company imports bikes from Kinesis Industry Co. in Taiwan (a big contract manufacturer of bike frames and equipment). Motobecane USA provides marketing, warranty support, a website and a range of models and a MSRP. It appears that the bikes are only available through Bikes Direct which is an online retailer of bikes; there does not appear to be any availability through independent bikes stores. Indeed, comments about quality on bike forums and from mechanics I have talked to is not positive. The company is targeting the low end of the market, competing on price and using almost only on-line distribution.  

An example of a successful brand make-over is the Mini Cooper. This brand was restored by BMW into a premium marque in the 90s, well after most Mini Coopers had disappeared from the road. They introduced among other things a bigger engine, more luxurious interior and a high level of customization. The point is that an old brand can be revived, even if it is defunct and associated with a different era,  and is nevertheless recognized by more consumers than one that is new. A brand such as FWT or Ritte is recognized by no one (or fewer people) and thus requires many dollars of advertising or many hours of racing and riding with other people before it takes hold with consumers.

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