'Speedo Underbody' previewed on an Australian morning show

In a previous post I mentioned that Speedo is launching an underwear line for both men and women. A sampling of the product can be seen in this Australian morning show program.

Knowing a thing or two about branding I can tell you definitively that business diversification can dilute or even kill a brand if not done correctly.

Coca-cola gets away with it since who really knows that they own Vitamin Water, Dasani, A&W, DR Pepper, Canada Dry, Squirt and dozens upon dozens of other brands not branded with the Coca-Cola name.

From music to phones to airplanes and video games, The Virgin Group is a strong brand globally but it does command a number one position in any of the businesses it is in? The answer is no!

Nike does dominate the shoe business but failed in the swimsuit arena. They could grab the number one position now that Speedo has been spanked but can they? They do have TYR and blueseventy to compete with.

I think this is a bad idea for Speedo to get into the underwear business and they would have been better served buying an existing brand and building both the business and that new brand concurrently much like Coca Cola has.

Swimsuit companies are in disarray right now for the FINA rule changes have hit swimsuit companies hard. Suit manufacturers went to the expense of "toolin-up" for 2009, and now they are forced to "tool-down" for 2010. People are losing their jobs as a result.

Is diversification Speedo's solution to this mess?