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By Root 629 0

its reputation as a technological innovator by setting up the Xerox Palo Alto Research Center, abbreviated as Xerox PARC. However, the research centre was also a testimony to Xerox’s broader ambitions. From 1970, the company expressed its desire to stretch beyond copying into the field of computer technology and data processing. In 1975 this desire became a reality with the launch of a computer product, Xerox Data Systems, which had been researched at Xerox PARC. It failed disastrously and Xerox lost US $85 million. Four years later though, the company was still determined to extend its brand beyond the copier market, this time with an early version of a fax machine called a Telecopier. Another disastrous failure.

The problem wasn’t that Xerox’s brand name was too weak. On the contrary, the problem was that Xerox was a very strong brand name, but one associated almost exclusively with copier machines. Xerox wasn’t just a company that made photocopiers – it was photocopiers. It didn’t matter if the machine was made by Canon or Kodak, people still referred to it as a Xerox machine. Indeed, this was an impression enforced through Xerox’s own marketing efforts. Through much of the 1970s and 1980s Xerox ads used to pose the question: ‘How to tell the real Xerox from a Xerox copy?’ The implication was that if it wasn’t Xerox, it wasn’t the real thing. While this strategy helped to sell copiers, it meant that it was tied to that product category. After all, no one brand can claim to be the only genuine article in more than one category.

For years, Xerox had competed on the superior quality of its copier products. Then, when the company’s rivals had caught up, it competed on the superior quality of its brand. And as soon as a company makes the transition from a simple product manufacturer, to a global brand, it has to live with the consequences. It can’t just create a strong perception and then undermine that perception by embarking on other categories. As Al Ries memorably put it, ‘the difference between brands is not in the products, but in the product names. Or rather the perception of the names.’

However, Xerox didn’t give up. Instead, it tried to tackle the problem head on. For instance, in a magazine ad for Xerox Computer Services, the strap line read: ‘This is not about copiers.’ But of course, this only confirmed the impression that Xerox was about copiers.

During the 1980s, Xerox tried to reposition itself as a provider of all technology-based office products. At the start of the decade, the company launched a personal computer, or (as Xerox preferred to term it) an ‘information processor’. Again, there was nothing fundamentally wrong with the product, at least for the time. But again, the product failed. Similar failures occurred when Xerox tried to launch office networks such as the XTEN network and the Ethernet office network, which were designed to compete with IBM’s Satellite Business network. Both the Xerox networks failed to make an impression.

Despite its best efforts to be associated with office technology, the public remained stubbornly unwilling to think of Xerox in any terms other than office copier technology. Although the company had invested fortunes in creating office information systems, this was an area steadfastly linked to another technology brand – IBM.

So why, then, did Xerox persist in trying to reposition its brand during the 1980s? Part of the answer may lie in the company’s admiration for Japanese models of business. It had close links with Fuji, and had a unique insight into the Japanese management style. In Japan, brand extension was, and indeed remains, the norm, especially for technology companies. For instance, there are few areas of home entertainment where the Sony brand doesn’t dominate. Yamaha is another example of successful brand extension. Although the company started producing pianos in the 19th century, it has not been tied down to musical instruments. After 60 years of piano-making, the Japanese company moved into various other product categories with very little difficulty.