M Business 5th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 4

Household goods and personal care products company Seventh Generation has built a reputation for its environmentally friendly "green" focus. It caters to customers who prefer their everyday items, such as dish soap and paper towels, to be made and packaged with recycled materials and contain natural ingredients. Its success is leading the company to expand beyond household goods into new markets, seeking other product lines that meet customer needs and provide a positive impact. In doing so, it must make careful choices to keep its brand strong and not stretch itself too thin across unrelated industries. Seventh Generation acquired Bobble, a reusable water bottle with a built-in filter, believing the product fit well with Seventh Generation's vision. The bottle continues to be sold under the Bobble name. Seventh Generation also expanded into coffee and tea by acquiring the startup Gamila. Gamila's two products are the Teastick, an elegantly designed loose-leaf tea infuser that can replace disposable teabags, and the Impress Coffee Brewer, which makes a high-quality cup of coffee using a unique process that does not require disposable filters or pods. Seventh Generation incorporated these products into the Bobble brand. Can a company known for toilet paper and trash bags find success in beverages by focusing on the unifying themes of good design and environmental stewardship? Keeping the Seventh Generation and Bobble brand names separate may be a conscious strategic choice to facilitate this transition. Seventh Generation must carefully choose its steps to reap the benefits of expansion and diversification while maintaining its reputation and core business. 6
How can Seventh Generation maintain a strong and consistent brand image as it grows and diversifies?