Your journey to develop a strategy for your brand is filled with positive intentions. You realize that you have to be brand-driven in everything you do and strive to put your business at the forefront of everything. However, sustaining and growing your brand is an entirely different matter altogether. It is a constant process of meetings with your team to figure out the most effective strategies to help your business expand in the eyes of your customers and better respond to their demands.
However, your journey may not go as smoothly as you envisioned despite all your best intentions. There is a lot at stake. You not only risk your time and money but also the reputation you’ve built so far. If the outcomes don’t go in the way you expected, you may be discouraged throughout the process. There are certainly some lessons that can be learned through each experiment, But why not master the tried and true techniques first?
If you’re looking to expand your business, Here are the four most popular branding strategies that you can test following your objectives and needs. These strategies will allow you to maximize your branding efforts and ensure that you are always responsive to the needs of consumers efficiently.
Developing Your Brand: The Most Common Strategies
1. Product Line Extension
The name suggests that the term “product line extension” refers to creating a product that is very like the products that the business already provides; however it is more responsive to customers’ needs. This is a common practice when your brand is recognizable enough and has a solid fan base.
A solid market presence is ideal for creating a line extension since there is already a loyal group of clients who will likely be interested in testing the new product. The line extension doesn’t replace any existing product. This is an update to the product, but it’s an entirely different strategy.
One example of a line extension is the Coke Green Coca-Cola. The company wanted to create an alternative beverage that could be naturally sweetened. So, they came up with the Green variant that utilizes Stevia leaf extract. This strategy for brand growth helps Coke since it attracts customers who might have been considering one of Coke’s competitors who operate more refined sweeteners.
Multi-branding is the term used to describe how an organization is marketing several items from the same market as rivals. This strategy is a way to ensure that the company has several brands that compete within a specific need. It ensures that the shelf space is more secure and stops competitors from launching an entry.
This is common for big companies with the resources and money to build and manage more brands effectively. The primary benefit is that multi-brands can be in different positions in the marketplace, thereby ensuring the competitive edge for each one.
For instance, Volkswagen Group has several brands under its management and tries to appeal to different kinds of consumers. They own one brand, the Bugatti name, that caters to most wealthy customers. They also have the SEAT brand that is focused on more sporting values. They do not consider themselves Volkswagen chauffeurs, even though the brands are both controlled by Volkswagen.
3. Brand Extension
Implementing a strategy to extend the brand involves expanding the understanding of the brand’s market. This occurs when the brand offers more than one service or product under the name of the existing brand.
In general, businesses must be aware of this method because it is risky, given that the market is constantly changing.
They aren’t likely to accept their expertise in a different sector. For instance, If Starbucks decided to extend its business to the tech sector, it would be difficult for the market to find it challenging to link the brand with technological products. This means that its brand’s reputation could be damaged. To ensure the best outcome, The new category of the product must have some connection to the last product category.
One company that successfully implemented the strategy of brand extension effectively has been Honda Motors, with its move into the market of power equipment. It used the reputation it gained through its automotive business to offer lawnmowers, generators, pumps, and other tools.
4. New Brand
The new brand strategy involves the creation of a new line of products and a brand that will accompany it. The sequence of products must be different from the existing offerings of the brand, and that’s why it’s required the creation of a brand new.
This method can be used when the strength of the current brand is declining, and they wish to keep the market position. Also, if the brand name currently used is not appropriate for the new category of product.
To experience the brand’s new look working, we could imagine Barclays the mobile transfer application Pingit. It was initially designed to cater to Barclays account holders but was later adapted to include customers who had bank accounts within the UK. This led to Barclays expanding its banking offerings in technology through a new brand and targeting a broader customer base.
From Strategy to Execution
As you’re probably aware, every strategy for a brand is driven by various goals and needs. Understanding the reason for the need for your branding development is as crucial as the strategy you choose to reach your goals.
From strategy to execution is an entirely different story. When you’re developing a brand starting from scratch or planning an extension of your product line, it is essential to make sure your strategy is in line with customers’ needs. Then, you must make sure that your branding elements are ready to communicate the new developments to guarantee growth in market share and increase your customers.