These services are usually offered in the client’s home, and are provided by franchisees, as will the beauty services – which will include facial, lash and brow and nail treatments, as well as waxing and teeth whitening.
Brand extensions are nothing new
Coles and Woolworths have diversified into just about every product there is by selling their own generic home brands.
This has allowed them to undercut other brands and get more margin – a strategy that is paying off as consumers become more stretched, allowing Coles to increase home brand sales 9.4% and Woolworths 7.8% over the past year.
Even their delivery services can be thought of as brand extensions. Away from their physical stores, they are offering telehealth, insurance, mobile phone plans, gift cards, and deliveries at work.
It works where there’s brand alignment
Sometimes the extreme strangeness of an extension can create a buzz around a faded company, even if its sales bomb.
Jim’s could fill a gap in the beauty market
Industry researcher IBISWorld says Australia’s beauty industry is characterised by “market saturation and the wholehearted acceptance of its products by consumers”, which isn’t a good sign for Jim’s.
But IBISWorld says sales of beauty products are overwhelmingly through physical stores with “new channels” (mainly online) accounting for only 13.8% – which suggests there is room for growth in face-to-face sales aligned with services.
Jim Penman started Jim’s Mowing as a side business in 1982 while studying for a PhD in history. He turned it into a franchise in 1989 and then extended the idea to franchises including Jim’s Cleaning, Jim’s Building Inspections, Jim’s Fencing, Jim’s Antennas, Jim’s Pest Control and Jim’s Dog Wash.
His success, or failure, in moving into beauty will help answer one of the enduring questions in business strategy: just because you can, does that mean you should?
- ^ Jim’s Mowing (www.jimsmowing.com.au)
- ^ Jim’s Plumbing (jimsplumbing.com.au)
- ^ Jim’s Beauty (jimsbeauty.net.au)
- ^ related businesses (jims.net)
- ^ comedy sketch (youtu.be)
- ^ halo (www.investopedia.com)
- ^ McCafes (franchiseexecutives.com.au)
- ^ 9.4% (cdn-api.markitdigital.com)
- ^ 7.8% (cdn-api.markitdigital.com)
- ^ delivery services (pitchgrade.com)
- ^ telehealth (www.healthylife.com.au)
- ^ insurance (www.woolworths.com.au)
- ^ mobile phone plans (mobile.everyday.com.au)
- ^ gift cards (giftcards.woolworths.com.au)
- ^ deliveries at work (atwork.woolworths.com.au)
- ^ brand alignment (www.forbes.com)
- ^ infamous failures (www.linkedin.com)
- ^ Harley-Davidson perfume (www.rideapart.com)
- ^ Bic underwear (bradburybrandexperts.com)
- ^ Cosmopolitan yogurt (patriciagsoto.medium.com)
- ^ Colgate beef lasagna (www.mashed.com)
- ^ Vegemite chocolate (twitter.com)
- ^ generate talk (www.adnews.com.au)
- ^ IBISWorld (my.ibisworld.com)
- ^ 1982 (jimsmowingmelbourne.com.au)
- ^ go-to for a plethora of services (jimsmowingmelbourne.com.au)
Authors: Edwina Luck, Senior Lecturer QUT Business School, Advertising, Marketing and Public Relations, Queensland University of Technology