Extending a Brand

by:Beauty Spirit     2020-08-09
The brand is the name, symbol or design that identifies and distinguishes the product-
Or a group of products-from others.
In order to maintain a competitive advantage, you must actively manage your brand;
Once established and successful, it is profitable to extend a brand to a new direction.
Brands can be expanded in a variety of ways, from enhancing products with additional features and advantages to changing or re-expanding
Position products for different market departments.
You need to know when is the right time to promote the brand?
Brands can be expanded if market conditions are favorable and new releases do not distract companies from their core brand activities.
If existing brands do not perform well in the market or have quality problems, the new brand extension is unlikely to succeed.
Should a brand always extend with a similar product?
The introduction of similar products reduces risk and increases the possibility of customer acceptance.
However, new products may cannibalize sales of existing products within that range and may confuse customers.
Some brand extensions, whether similar or different, may succeed in the reputation of established brand names, but they should always have the same core brand value as existing products
Can a brand be weakened by extension?
Some companies have expanded their brand, but have not maintained the quality of their products, ignoring the investment of sufficient sales or marketing resources for new products.
Poor performance or failure of new products can damage other products within the scope, so it is important to carefully plan the brand extension.
Does the introduction of brand extensions require a broad range of advertising and marketing initiatives?
Some new products are able to take advantage of the strengths of major brands and they may succeed without the support of specific personal marketing initiatives.
However, some marketing support is often required.
If the extension represents a change in the direction of the brand, then a lot of marketing support will be important.
Choosing a brand extension way brands can be expanded in many different ways --
New product development is not the only option.
Existing products should be constantly reviewed and improved to ensure that they are always focused on changing customer needs.
There are many different approaches to brand extension, including: enhancing existing products with additional features and advantages;
Introduce higheror lower-
Pricing version of the product;
Expand Product scope;
Segment the market with product variants;
Launch niche products;
Introduce own brand products;
Bundle additional products or services from third parties;
Respond to product competition.
These methods will be discussed in more detail below.
Enhancing existing products is a suitable strategy for products that are in the stage of growth or maturity.
Enhancements may include new features and/or performance improvements.
These changes can be based on customers-
Need to evaluate or compete-
Match policy.
Some brand extensions aim to enhance the product while maintaining the same price.
Product development like this can be easily imitated, so they may only provide short-term
Competitive advantage.
However, the focus on customer needs suggests that the focus of the brand is to lead rather than follow.
Introduce higheror Lower-
VersionsPrice for pricing may be a deterrent for some potential customers.
Therefore, the introduction of a lower
Pricing versions of existing products may broaden the market for the brand.
When producing a budget version, care must be taken to avoid diluting any brand value of the product.
For example, quality standards should not be reduced if quality is the key brand value.
Poor quality reports in the new version may affect the customer\'s perception of the entire range.
Or, offer a higher
Pricing versions of existing products can be based on customer satisfaction with the value of existing brands. The higher-
Pricing versions, however, must provide added value.
Increasing the price of existing products alone will alienate existing customers.
Expanding product range expanding the range of existing product lines allows you to build on the reputation and success of existing brands and sell more products through the same sales channels.
The key decision is whether to expand the scope with similar products or introduce new products.
Due to familiarity, customers may be more receptive to new products when they are made up of similar products.
While the introduction of a brand new product presents a higher risk, this approach may create a broader appeal.
There are a few important benefits in this World War I.
Products added to the existing series offer customers a greater choice and may make the series more attractive to a wider range of potential customers.
The new product also benefits from marketing support for the range of existing products, which means the opportunity to increase sales per customer without increasing marketing costs proportionally.
The expansion of the product range reduces the overall cost and risk of new product development.
Because it is based on existing brands, it is difficult for competitors to imitate.
Focus on customer needs and use customer relationships to improve sales channel performance.
The strategy of market segmentation by product category is based on the improvement of existing products to meet the different requirements of different market departments.
In essence, product variants allow you to segment the market more effectively.
Through this strategy, the organization can focus on meeting the precise needs of various departments, while concentrating resources on the most important departments.
It can also enhance the perception of brands and build stronger relationships with customers in various industries.
This method is based on existing products, so it is difficult for competitors to imitate.
Niche markets are a small, specific market sector determined by some special, common features.
As an alternative to focusing on the market as a whole, a company may focus on specific niche areas where it has advantages or opportunities that competitors cannot gain.
This method usually provides a lower volume
Niche markets are by definition small --
But the price is up.
Niche product strategy shows that the brand meets the specific customer needs of the target industry, but success will be highly dependent
Targeted marketing
The potential for low returns may prevent certain types of competitors;
However, smaller companies may be able to compete more effectively with larger organizations in niche industries.
Introduction private label products private label sales is to authorize your products to other companies in the form of standards or modifications to sell under their own brand, not under the brand of your company.
The strategy is low.
The cost option can generate revenue, but it will reduce the opportunity to increase the market share of its own products.
There are a few ways to implement this war, including: repackaging standard products as new private labels;
Create modified products that meet the specifications of other manufacturers;
Develop products specifically for other manufacturers. Bundle Third-
Third-party products or services existing products can be sold in combination with other third-party products or services.
This practice is called bundling.
Like the private label strategy, the bundling strategy allows companies to increase their reach and expand their brands without having to invest heavily in new product development.
Various approaches to implementing this strategy include: purchase (or license)
Existing products or services that complement or expand their scope; buy (or license)
Complete product range from third parties;
Subcontracts the development of complementary products to external organizations;
Work with third parties to develop complementary new products or services.
Bundled products reduce the cost of product development and speed up the time of product listing.
However, the same third
Competitors can also purchase party products.
There is no guarantee that the bundled products will provide the same quality and performance level as the company\'s own products, and sometimes the integration challenges must be met.
Efforts should be made to avoid any reduction in standards, which may adversely affect brand perception.
In a competitive market, strategies to match or respond to competitors\' actions are sometimes necessary.
With this strategy, you may succeed in retaining market share, but it doesn\'t necessarily push your company forward.
Example of this extension methodor maintaining—
Brands include: Matching the product features or prices of competitors;
Make some minor improvements in product performance;
Keep up with the pace of changes in the market, rather than pursuing innovation;
Use high level of marketing support to make up for the low difference in the product;
Use loyalty programs to keep customers.
This strategy reduces the cost and risk of new product development, but it focuses on maintaining market share rather than market development.
Because the development of these products is easily imitated, the competitive advantage is very small.
In fact, they often imitate themselves.
This strategy emphasizes following rather than leading, and can be difficult to implement when competitors introduce major changes.
Companies with successful brands are sometimes reluctant to change them.
If the customer needs to change, or the competitive product has improved, the successful brand will not stagnate.
If the company does not respond, the brand may start to lose its share and, in extreme cases, may not be able to recover.
Relying solely on existing brands to promote and support brand extension is not a universally successful strategy.
Even if the new product is just an extension of the brand, it should be effectively supported for its release.
There may be risks in launching new products;
No company should fail to invite.
You give up the core brand value, and some companies with successful existing products launch new products at will, hoping that customers will adopt it just because the new product has an established brand name.
Brand extension should be the natural product of existing brands, with the same core value.
In the end, the customer will judge the product based on the performance of the product and the ability to meet the needs, not on the brand of the product.
You don\'t take advantage of a strong brand and see the company ignore a strong, good --accepted brand.
Developing or launching new products that provide customers with the same brand value can create additional revenue and expand the customer base.
When executed effectively, brand extension is a very useful technology to develop the business.
Where to learn more books: Leslie de chernani.
From brand vision to brand evaluation. 2nd ed.
Marvoban: ButterworthHyinman, 2006
Website: American Marketing Association: www. marketingpower.
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