When creating a brand extension strategy, IP owners could learn much from the easyGroup approach, says Mona Asgari. Despite some notable challenges, the brand's success highlights the importance of strategic brand development and effective management of intellectual property (IP).
Founded by Sir Stelios Haji-Ioannou, the easyGroup has created and expanded its brand across various sectors, starting with the success of easyJet, the low-cost airline launched in 1995. The company's approach to brand hierarchy and development offers a useful example for businesses aiming to scale while maintaining consistent brand recognition.
Brand development and strategic brand extension
A hallmark of easyGroup's success is its ability to execute brand extension effectively. The "easy" brand has been extended far beyond its airline origins, spanning industries from hotels to transportation and fitness. At the core of easyGroup's business model is the promise of offering affordable, no-frills services – a philosophy that began with easyJet and now serves as the foundation for all ventures under the easyGroup umbrella.
This approach to brand development ensures that every new offering under the "easy" name benefits from the strong, recognisable identity the group has established. The cohesive visual identity, characterised by the distinctive orange and white branding, plays a pivotal role in reinforcing the easyGroup's market presence across industries.
Brand hierarchy
A key component of easyGroup's brand strategy lies in its well-defined brand hierarchy. This structure not only facilitates brand scalability but also allows for the strategic management of its numerous ventures, whether they are directly owned or licensed.
The hierarchy consists of three primary levels:
- Parent brand (easyGroup): At the top, easyGroup functions as the overarching entity, providing direction for the strategic use of the "easy" brand. As the custodian of the brand, easyGroup oversees all trademark and IP matters, ensuring that every use of the "easy" name aligns with its core values and low-cost philosophy.
- Flagship brands: The second tier of the hierarchy includes flagship brands that are closely aligned with the parent company. These high-profile brands, such as easyJet and easyHotel, are integral to maintaining the visibility and reputation of the overall brand. Their success bolsters the recognition of the "easy" name, ensuring a consistent message across the board.
- Licensed brands: At the third level are businesses that operate independently under the "easy" brand through licensing agreements. These include ventures such as easyBus and easyGym. Although these businesses function separately, their affiliation with the easyGroup brand is crucial in ensuring consistency and trust with customers.
This hierarchical structure enables easyGroup to scale into new markets while keeping a unified brand image. Each venture remains connected to the core brand values, but the decentralised nature of the licensed businesses allows easyGroup to explore a wide range of industries without overextending itself.
Intellectual property as a strategic asset
Central to easyGroup's brand development strategy is its approach to IP. The recognisable trademarks and distinctive branding elements of the easyGroup are not only tools for customer recognition but also valuable assets that the company actively protects.
The company has been diligent in defending its trademarks, often engaging in legal disputes to prevent other entities from using the "easy" name in ways that might dilute the brand's value or create confusion in the marketplace. This proactive approach to IP protection underscores the importance of IP in modern brand strategy.
One notable aspect of easyGroup's efforts to protect its brand is the Brand Thieves archive on its website, which serves as a public record of its trademark disputes. This initiative highlights the company's dedication to safeguarding its brand and IP portfolio.
Challenges in IP enforcement: The case of Easyfundraising
While the easyGroup has been successful in many trademark disputes, it recently faced a setback in the UK in a September 2024 case against Easyfundraising. The easyGroup had sought to prevent the charity from using "easy" in its name, despite Easyfundraising operating under that name for nearly 20 years.
The UK court ruled in favour of Easyfundraising, determining that the services it provided were sufficiently distinct from those of easyGroup, and there was no evidence of customer confusion or unfair advantage caused by the charity's use of the word "easy". This ruling highlights the complexities of IP enforcement, especially when it comes to longstanding, established names in unrelated industries.
The above is one of many in a long-running series of trademark actions brought by the easyGroup. While winning some cases and losing others, the easyGroup has been largely successful in brand development and strategic brand extension. Through a robust brand hierarchy and the strategic use of IP as a core asset, the company has been able to consistently apply its branding across diverse industries, building a recognisable and cohesive brand.
To find out how to integrate IP into your brand development approach, contact your Novagraaf attorney or download our white paper.
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