World Association of News Publishers

The value of brand in product extension

The value of brand in product extension

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With a strong brand, you can sell anything, says Anders Emil Moller, but you should be careful about what you sell.

Anders Emil Moller, the Director of Digital Development of Politiken, Denmark

"If you want to make money from news brands – and you should want to do that – your customers have to trust your choice of products," says Mr Moller, the Director of Digital Development of Politiken, the leading Danish quality daily.

In terms of news products, Politken is very careful to guard quality on all platforms. It tried broadcast, but abandoned this because it's programming did not live up to the quality of the central print and web brands. It abandoned several sub brands for the same reason.

"We prefer to invest in a reporter or commentator than a TV commercial. We say 'no" to a lot now to allow us to focus. We want the best writers, the best photographers, the best cartoonists, and all this has to be served at its best," says Mr Moller. "We can see the brand is essential to us to building a modern news company. Content is available everywhere. The only differentiator is the brand."

But Politiken has taken brand extension to a new level – going beyond offering traditional news and extending its brand into a new area: retail sales.

Politiken's "Politiken Plus", which started as a loyalty club, is now a major retailer of quality goods – it has become the third leading revenue producer for the company after circulation sales and advertising, with a 15 percent profit margin.

Politiken Plus sells tickets to cultural events, tours, music, clothing, games and more. It is the largest seller of bicycle helmets in the country. "As long as (the product) is in line with our values, we can go along with it," Mr Moller says. "The users, formerly known as readers, are not surprised by buying a helmet or a book of the month, because that's part of our values already."

"We've been able to digitize and convert loyalty of thought to loyalty of consumption," he says.


Larry Kilman's picture

Larry Kilman


2011-04-11 16:59

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Here are the summaries of all speaker presentations at Digital Media Europe, that was held in London from 11-13 April 2011. Read more ...

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