What can you do to take your company beyond the point of surviving? What can you do to achieve the amount of growth you want? There are several development strategies to explore, just like any other aspect of operating a business.
Is it time for brand expansion, and do you want to kick the market off? Here are four different strategies that could be your starting point.
1. Line Expansion Plan
First, the Line Extension strategy is a way of listening to customers’ needs instead of losing their potential by introducing a new service or product line that satisfies them. In addition, line extension usually refers to a new flavor, odor, formula, color, size, or style of a product in an existing product line.
Line Extension Strategy: An updated version of an established product competes in the same category as the original.
Here are real-life leading brands that use line extensions.
Colgate toothpaste has a bleaching product and then offers a toothpaste that relieves tooth sensitivity.
Moreover, Coca-Cola introduced Coca-Cola Energy in addition to the existing cola in the market.
2. Brand Extension Strategy
A new product in a new market? This is the brand extension strategy, in which an established brand introduces a new product in a category where it has never previously competed.
Starbucks created k-cups for coffee consumers who want to get the advantages of coffee at home or work. They not only employed the brand extension approach to serve clients in the comfort of their own homes or at work.
3. The New Brand Strategy
A new brand for a new product is simply a new brand strategy that involves creating a new brand for a new product under the control of the same firm.
Furthermore, the new brand strategy is the most expensive approach because launching a new brand involves expenses such as advertising, sales employees, and production expenditures.
Salty snacks are the best fit for the new brand strategy. For example, Frito-Lay provides a variety of salty snacks under many brand names, such as Doritos and Cheetos.
4. Flanker Branding Strategy
Moving forward to introducing a new brand to an existing product area, the Flanker Brand Strategy, which focuses on targeting a distinct group of consumers, means that a new brand can compete in the category without threatening the current product’s market share,
Apple for mobile and electronic products is an example of using a flanker brand strategy to introduce the iPhone X in parallel with the iPhone 8, adding distinctive features and price range to the iPhone X than the regular iPhone 8 to exclusively celebrate Apple’s 10th anniversary.
5. Fighter Branding Strategy
Lastly, increasing your market share or taking market share from competitors is called a “fighter brand strategy.”
When a company builds a new brand to take market share from another, this is known as a “fighter brand strategy.” Typically, fighting brands are launched to target competitors rather than customers.
Coca-Cola recognized a chance to compete with Squirt, which was a new fruity soft drink on the market, but Coca-Cola decided to manufacture Citra to acquire market share.
Before you start to decide which strategy suits your brand best, you need to go through five steps:
1.Brand evaluation:
Before you take on the world, take a step back and consider what works best for you, as well as what you may add to your brand to improve its value and purpose.
How do you determine whether you have a firm base on which to expand? If you’ve developed something that has devoted and consistent revenue based on customer loyalty, you should consider investing in emulating that experience.
If your original brand requires some adjusting, you should concentrate on these challenges unless you have found a winning strategy.
2. Keep your audience satisfied.
Your audience is your success partner; you must build a long-term strategy for keeping your most satisfied consumers pleased while also expanding into new areas. Are there any niche markets that have similar demands? Is there any group that your present audience does not want to relate to?
Keep these ideas in mind as you draw in a new audience. You are onto something if you can grow your brand and provide your current followers with another opportunity to spend money. You don’t want to mislead your primary audience of brand ambassadors and influencers; they are the ones who have given you all your current success.
3.What is the cost?
Furthermore, the last thing you want to do is waste time and money on a business that does not provide much in terms of profit or potential. While it is true that you might theoretically expand your brand for little or no money, you should still consider your predicted costs and returns when establishing your initial strategy. Consider the value of your time and the opportunity cost of failure to keep your current brand.
4. Perform a launch test:
When testing your new brand, focus on acquiring awareness quietly and do not make a lot of noise. The worst thing you can do is waste a lot of time and money and then be publicly humiliated.
Quiet lunches are usually safer. Is there a sound when a tree falls in the woods, and no one is around to hear it?
5. What is history?
Research both success stories and epic disasters when thinking about your brand development and learn from both. There are several circumstances in which you might investigate developing new strategies.
Finally, the ideal growth plan is determined by the stage of your brand and the capabilities you currently have. Consider how much money, time, experience, or employees you must invest, as well as your present market, business goals, and consumer interests.
Eventually, raising your brand to the next level involves effort, strategy, and research. Most significantly, it necessitates the establishment of a firm basis. Analyzing your brand’s competencies, audience, and development prospects will improve your brand’s capacity to expand into new directions.
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