Will There Be a National Brand in Funeral Service?

There is no doubt that there is a tremendous value in establishing a national brand that can gain value by economies of scale, national reputation, and accessibility.  Think about companies like Dominos, Burger King, McDonalds, Waste Management, Macy’s, Kohls, and the like where you know the value and quality of what you are buying when you make the purchase.

I’ve had some definite ideas on why we haven’t seen that type of branding in the funeral industry – yet I think that there may be a value in it as the American consumer moves more to social media business relationships and we become even less rooted in a community as a society.  I’ve often noticed that while a national or regional brand was common in things such as electronics stores, furniture stores and the like — funeral homes were distinctly local with their brands.

Think about it — if you have seen some type of retail outlet in your community sell to a larger chain – the name is usually changed to be reflective of the larger chains brand awareness and economies of scale.  Now, think about local funeral homes — if they change hands the local name is usually kept.  It is very clear to me that reflects the “personal” nature and “local” awareness of the funeral home’s reputation.  In other words, the local funeral brand that has been built over the years is far more valuable than any regional or national name at the present time in the industry in that locale.  That brand – or local name – is probably the greatest asset a selling funeral home operator has when it comes to negotiating the sale.

So, back to the headline.  Will we ever see a national brand in the United States in the funeral industry?  A national brand with great service capabilities would be easier than ever at this time to catch positive public relations because of the use of social media.  What about Service Corporation International who tags all of their locally named funeral homes “A Member of the Dignity Memorial  Network”.  They are doing what I call “Sub-Branding”.  They are exposing the brand “Dignity Memorial” while still capitalizing on the local family funeral home name.

I’ve seen that tried before with limited success.  Think of Smith Realty – “A Better Homes and Garden Realtor” or Johnson Insurance – “A Trusted Choice Provider” or even in our industry in the pre-need marketing side, Jones Funeral Home — ” A Trust 100 Network Member”.  I’ve never seen the sub-branding concept catch on because the consumer does not use the name – they use the original family name.  I believe that the same result is being perpetuated with the Dignity Memorial funeral homes.

Dignity Memorial, according to their web-site, has 2000 locations in the United States.  That number is probably greater than 10% of the funeral establishments in the country.  They have a start on a national brand, but they have been using it as a sub-brand for about 20 years and it, in my opinion, does not have national consumer awareness yet.  Maybe it is time for SCI to be bold and put “Dignity Memorial” at the top of the sign and “Jones Chapel” on the bottom.  It could lead to great business benefits if the consumer was satisfied with the services that they received.

Think about it.  . . .the rewards to SCI could be such that they could rent buildings, build them out to be funeral service locations, and then pop the “Dignity Memorial” brand on them at pennies on the dollar of what acquisitions are costing – especially in areas that they want to be in.  It is an interesting thought – but they would have to have confidence in the “Dignity Memorial” brand.  I don’t think they do.  I’ve got other thoughts on national branding in the death care industry and we will visit some of those in later days.

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