When Do You Need Another Brand? - Issue: 2003 Qtr 3
Well, if you’re a NASCAR driver, as long as there’s empty sheet metal on the car, there’s room for another brand. But it’s a whole different race with your business.
Companies add new brands in a variety of ways, but the two most common are through purchase and internal growth.
When a business acquires a brand through the purchase of another company or business unit, the brand name is often similar to the company name or closely linked to it. So now, there are all kinds of related issues and concerns, in addition to the usual business process details.
When companies feel the need to add brands internally, it usually means they’ve developed a new product or service that is distinct from anything else they offer; or they have something to offer a completely different audience or market. Sometimes, the reason may even be a misguided idea that “the more brands, the better.”
Adding a brand can stir passionate debate. So, rather than try to hammer out a decision internally, consider a different approach. Take a look at the issue from the perspective of a customer/prospect — or a marketplace viewpoint. To do this may require market insight — a.k.a. research.
For example, research may reveal that the brand you purchased may not be as well–known or have the great awareness you thought. This doesn’t mean it was a bad acquisition, it just means you now have new, valuable information from which to make a brand decision.
Or, research may point out that the core attributes and value proposition of the new brand are very different from your existing brand, thereby adding credence to the need for a new brand (think Toyota and Lexus).
A little research could also reveal the new brand you’re thinking about launching may actually confuse people. They might expect to get that product or service from your existing brand. And don’t forget to ask your channel customers, too. They are important to the success of any brand, especially a new brand launch.
Market insight can help overcome internal bias, because it gives you a picture from the brand (read: outside) perspective. And when outside data is combined with smart business strategy, the brand — whether existing or new — is the winner.
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