Branding is not just about listing your product or services and sitting back and waiting until someone comes and asks for it. Every choice you’ve ever made, every strategy you’ve ever built, whether they are good or bad, built you the company you have today.
In this blog, we discuss four main brand strategies, including product line extension, multi-brand, brand extension, and new brand. Don’t be on the list of lesser-known brands. Your brand must be well known so that the consumers can trust you. Keep yourself and your company updated 24/7 to stand out in your target market. Let’s say the game is on.
Product Line Extension Strategy
A product line extension is one of the four branding strategies where you introduce a new product that does not replace any existing products and only fits the same category or product line that your company already offers. The main reason for a product line extension strategy is that you only lunch a new product to respond better to customer needs.
Example of a Product Line Extension Strategy
An example of a product line extension strategy is Apple when in 2014, they released iPhone 6 Plus only to satisfy consumers looking for bigger screen options. As you can see, it was in the same category but with an extra option.
Another example we can take is Lamborghini, a well-known brand that is famous for its sports car. In 2017 they added the Lamborghini Urus to their product line. Lamborghini Urus is a super sports car with the functionality of an SUV (Sports Utility Vehicle).
As you can see, you must know your target audience to stand out in your target market and in order to imply a product line extension strategy.
Multi-brand Strategy
A multi-brand strategy means having a portfolio of products with different brands or names, all owned and managed by the same company.
An example of a multi-brand strategy is Nestlé, with over 2000 brands, including Nespresso and KitKat. Another example is L’Oreal, which has a portfolio of products like Garnier, Maybelline, NYX, and La Roche-Posay.
Multi-brand Architecture
There are various ways to develop a multi-brand strategy, and the company’s best solution depends on several factors. There are two main types of multi-brand strategies: a Branded House or a House of Brands.
– A Branded House
A branded house means when you launch new brands for the same target audience, but the main difference is that the new brand serves different needs. A well-known example of a branded house is Nike. Jordan is a massive Nike brand you can find inside the Nike eCommerce experience.
– A House of Brands
A House of Brands means you launch different brands for different target audiences, and each brand is independent of one another, and no one associates the new brands with the parent brand.
Brand Extension Strategy
Brand extension strategy means you broaden your company in the market by introducing new products or services under the existing brand name. Brand extension strategy is powerful but must be developed carefully to increase your revenue and sales.
3 Successful Brand Extensions
These three successful brand extensions will inspire you: Apple, Coca-Cola, and Dyson.
– Apple
Apple is a well-known technology company for its phones and computers. But it used brand extension; now, their products also include the Apple Watch and Airpods.
– Coca-Cola
You might know Coca-Cola for its carbonated soft drinks. But it’s not all. Coca-Cola also produces Dasani water and Glaceau Smartwater.
– Dyson
Dyson started with the manufacturing of vacuum cleaners and household appliances. But it used brand extension. Now you can see how the hairdryers, bladeless fans, and stylers it produces are popular among young people.
New Brand Strategy
The new brand is the most costly and time-consuming strategy among these four brand development strategies. The New brand strategy requires a good amount of budget in order to be done perfectly.
The New brand strategy requires everything to be new, including brand name, tagline, branding logo design, communication strategy, website, employees, research, branding marketing strategy, etc.
On a Final Note
Running a company is challenging; every day, new ideas and challenges come to you, and you have to face them and keep yourself up. Every day you have to make a decision and build new practical marketing strategies to move ahead of your competitors. Even when you think you’ve done enough, there is always another strategy you didn’t think about that might be the death of your company.
PurpleZ is here to help; we are one of the leading marketing agencies in Orange County, CA. Our expert team implements the most beneficial brand strategies in order to increase your sales and revenue. To book your free marketing audit from our top business and marketing consultants, give us a call today.
Sources:
https://www.vaimo.com/multi-brand-strategy-trends/
https://sendpulse.com/support/glossary/brand-extension
https://www.xara.com/branding-hub/four-branding-strategies/
https://www.mountwoods.com/4-branding-strategies-every-founder-should-know/
