Two of the buzzwords circulating the brandosphere are “convergence” and “divergence”. Simply put, convergence means the merging of two or more ideas under one banner or offering. Examples include the blackberry-phone, Wawa-Gas Stations, calculator- watches, etc. Sears is a
master of convergence offering multiple categories such as clothing, appliances, sporting goods, tools, furniture, camping supplies, home improvement, automotive supplies- and the list goes on- under one roof. Divergence on the other hand, means isolating a piece of a larger offering and making it stand on its own to perform a single function. Examples include Starbucks coffee, Dell computers, Just Tires, Jiffy Lube, Rita’s Ices etc. Procter & Gamble is the king at maintaining divergent categories by never merging any of its hundreds of companies or offerings together.
As businesses attempt to create new offerings (without actually inventing anything new), the question of whether to converge or diverge, constantly arises.
Convergence is logical. “Two is better than one.” From a consumer standpoint -If two ideas work well separately, wouldn’t it be even better to have them come together in one neat package? On the business end, if businesses anyways have the space, equipment and personnel, why not double dip and use it to generate multiple revenue streams? “Kill two birds with one stone.” Divergence, on the other hand, is illogical. From a consumer standpo
int, why would someone purchase an item that performs a single function when they can purchase one that offers multiple functions? Why would you go to a specialty store that only sells one product type when you can go to one that sells many different things, including that one item? On the business end, why should a business limit itself to sell only one type of item when it has the capability of doing so much more?
Unfortunately, however, people don’t make purchasing decisions nor do businesses operate well, based on logic. Spending is a function of the heart, routed in emotion and intuition. Whichever offering type appeals to the heart best gets the order. A well run business needs to be seamless and systematic. Cohesiveness should be the objective rather than logic. What needs to be figured out is if convergence and divergence ideas resonate strongly and connect well with customers or not, and do convergence and divergence ideas enable businesses to run smoothly, or not?
Based on the brand theory that people think in categories (See previous article: Own the category, at tugbranding.blogspot.com), it seems that both convergence and divergence can work well, as long as they result in forming one single, complete category.
As an analogy, consider a bouquet of flowers: To one extreme, a dainty vase with one rose and some baby breath, make a small, nice, complete bouquet; appropriate for certain settings. On the other end, a banquet bouquet can be huge with hundreds of matching flowers, perfectly synchronized and laid out. As long as each one is a complete nice looking bouquet, people connect and there are takers. However if a bouquet is incongruent, either because it is overstuffed with mismatched flowers and resembles a mini wild forest, or because it is missing flowers and looks empty, no one at any level of the buying spectrum will connect and buy it. People’s feelings connect with complete offerings, however large or small. So too with convergence and divergence; as long as the sum total of either offering fits within one complete category, whether it be a single item or multiple item category, they can appeal to the potential buyer and be successful. Similarly, when businesses have one central goal in mind, falling under one category banner, they can run like well-oiled machines.
Does Starbucks, a single product type offering, make up a complete category? Sure, it owns the “premium coffee” category. Does Wal-Mart, that sells thousands of different items, make up a single, complete category? Sure, it owns the “household” category. Wawa-Gas Stations are “convenience stops” (or rest stops); BlackBerry-phone is a “communications device”. A Cd/tape/radio is a “listening device”. What category is Sears? Or a calculator watch? Beats me. And that may be why they are less popular than you would have imagined.
master of convergence offering multiple categories such as clothing, appliances, sporting goods, tools, furniture, camping supplies, home improvement, automotive supplies- and the list goes on- under one roof. Divergence on the other hand, means isolating a piece of a larger offering and making it stand on its own to perform a single function. Examples include Starbucks coffee, Dell computers, Just Tires, Jiffy Lube, Rita’s Ices etc. Procter & Gamble is the king at maintaining divergent categories by never merging any of its hundreds of companies or offerings together.As businesses attempt to create new offerings (without actually inventing anything new), the question of whether to converge or diverge, constantly arises.
Convergence is logical. “Two is better than one.” From a consumer standpoint -If two ideas work well separately, wouldn’t it be even better to have them come together in one neat package? On the business end, if businesses anyways have the space, equipment and personnel, why not double dip and use it to generate multiple revenue streams? “Kill two birds with one stone.” Divergence, on the other hand, is illogical. From a consumer standpo
int, why would someone purchase an item that performs a single function when they can purchase one that offers multiple functions? Why would you go to a specialty store that only sells one product type when you can go to one that sells many different things, including that one item? On the business end, why should a business limit itself to sell only one type of item when it has the capability of doing so much more?Unfortunately, however, people don’t make purchasing decisions nor do businesses operate well, based on logic. Spending is a function of the heart, routed in emotion and intuition. Whichever offering type appeals to the heart best gets the order. A well run business needs to be seamless and systematic. Cohesiveness should be the objective rather than logic. What needs to be figured out is if convergence and divergence ideas resonate strongly and connect well with customers or not, and do convergence and divergence ideas enable businesses to run smoothly, or not?
Based on the brand theory that people think in categories (See previous article: Own the category, at tugbranding.blogspot.com), it seems that both convergence and divergence can work well, as long as they result in forming one single, complete category.
As an analogy, consider a bouquet of flowers: To one extreme, a dainty vase with one rose and some baby breath, make a small, nice, complete bouquet; appropriate for certain settings. On the other end, a banquet bouquet can be huge with hundreds of matching flowers, perfectly synchronized and laid out. As long as each one is a complete nice looking bouquet, people connect and there are takers. However if a bouquet is incongruent, either because it is overstuffed with mismatched flowers and resembles a mini wild forest, or because it is missing flowers and looks empty, no one at any level of the buying spectrum will connect and buy it. People’s feelings connect with complete offerings, however large or small. So too with convergence and divergence; as long as the sum total of either offering fits within one complete category, whether it be a single item or multiple item category, they can appeal to the potential buyer and be successful. Similarly, when businesses have one central goal in mind, falling under one category banner, they can run like well-oiled machines.
Does Starbucks, a single product type offering, make up a complete category? Sure, it owns the “premium coffee” category. Does Wal-Mart, that sells thousands of different items, make up a single, complete category? Sure, it owns the “household” category. Wawa-Gas Stations are “convenience stops” (or rest stops); BlackBerry-phone is a “communications device”. A Cd/tape/radio is a “listening device”. What category is Sears? Or a calculator watch? Beats me. And that may be why they are less popular than you would have imagined.
Yaacov Weiss is a brand strategist and founder of Tug branding and marketing, based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com.
