No Simple Solution for Amazon
Just changing names to create a new brand does not always work. Remember Tab, the diet cola that Coke marketed. I'm not sure it still exists, but Diet Coke certainly exists.
Sometimes the apparent same marketing approach that works in one case fails in another. Remember the Edsel, which Ford tried to market as a new car line. It failed, as did the Eagle that Jeep tried to market, yet Acura, Lexus, Infinity and even Saturn seem to have done well.
To decide to ignore the brand value created over time and launch a new brand instead of a brand extension program requires a reason. Sony has extended its brand name over TV sets, Camcorders, game consoles and even computers. To suggest that Wal-Mart sells way too many types of products is ridiculous.
I can't offer Amazon a simple solution, but retreating to its core profitable lines might be a short-term solution that misses the greater potential. I repeat, it's not that simple.
Mitch Schultz, Director of direct marketing, Alloy