Little Trees : Differentiation by Trade Dress

 Brand: Little Trees

Company: Car Freshner Corporation

Brand Analysis Count: #617

Little Trees was a brand I happened to purchase quite accidentally. I happened to browse through my usual online grocery app and saw this brand of car fresheners. I have seen this car freshener earlier and thought of checking it out. Then I found that it is " Made in USA". That hooked me and I bought the product. Again one more anecdotal example to prove the existing research findings that country of origin has a significant influence on brand preference and purchase intention. 

Research on this brand threw a lot of interesting stories about the brand. The brand is from New York USA and was created by Julius Samann. Samman was a chemist and he created this product in 1952 to solve a problem faced by his friend who is a milkman. His friend was bothered by the smell of spilt milk on his truck. Samman took on solving this problem and he extracted aroma from pine trees and designed a freshener in the shape of a pine tree with a string attached to it which can be used to dangle the freshener onto the car's rear-view windscreen mirror. He applied for a patent for this unique product. 

The product was a success in the market and later the company followed it up with a lot of related product extensions. 

There are a lot of lessons that can be learned from this brand. The most interesting lesson is with regard to product design which is the most powerful brand element of Little Trees. The product is designed in the abstract form of a pine tree which differentiates itself from the rest of the car freshener brands. The strategy of using the visual appearance of the product or packaging to signify the source of the product is known as Trade Dress. Another example is the coca-cola bottle. Trade Dress comes under the protection of intellectual property rights which makes this a powerful differentiator. 

Another lesson is that the very nature of the product design where the car freshener visibly dangles in front of the car gives this brand immediate promotion. Another factor is that this product is priced very reasonably given its rich branding history. 

Indian car freshener market is worth around Rs 250 crores and looking at the growth of the automobile market, the potential is there for many such brands. Recently the government has allowed the import of non-burning fresheners in India which may have opened the doors for these brands into the Indian market.

Brand Update : Maruti Attempts Channel Differentiation using Nexa and Arena

In 2015, Maruti launched a new channel to cater to the company's foray into the premium four-wheeler segment. The new channel was branded as Nexa. Nexa catered to the premium range of cars from Maruti like Baleno, Brezza, Ciaz etc. The Nexa showrooms were designed to project a premium feel for the segment of customers that prefer premium cars.

It was a challenging move for the company because the multi-channel strategy has its share of problems like organizational challenges, differentiation challenges, channel conflict, redundancy etc. The need for a premium channel arose because Maruti started off as a maker of affordable cars. Its range of cars was never targeting the premium segment. Some of the earlier forays of Maruti into the premium segment also failed to achieve traction. 

Recently the company tasted its success with the mid-range and premium segment with some smart brand launches. Having a premium channel like Nexa enabled to company to give a different kind of experience to this segment.

In 2017, the company rebranded its traditional channel to Maruti Arena which sells the mass market brands like Alto, Wagon-R etc. The company also have a commercial channel and True Value channel for used cars. 

In theory, the company has followed a Marketing Channel Segment Differentiation strategy where the channels differ in terms of the customer segment which they cater. Another type of channel differentiation is Task Differentiation where the channel members differ in terms of the tasks they perform. 

Although the company has tried to create channel differentiation, there is still overlaps in terms of products. While some brands are exclusive to Nexa, some are available in both the outlets which can create potential channel conflict. Marketing Channel differentiation based on segments works well when there is a minimum overlap of characteristics across segments. Here in the case of automobiles, there is bound to be segment overlaps because of pricing overlaps as well as aspirational factors. We can see that the price of high-end variants of hatchbacks is equal to the price of certain mid-size entry-level variants. So the firms who have a channel differentiation strategy should ensure that these overlaps be kept a minimum.

 But with the huge market share and product sales, the channel members at this point of time may not be complaining too much about the cannibalization of sales.