5.10:
Branding Strategies
There are five brand development strategies. These are:
Line Extension which is about companies expanding their product line with new variants, flavors, or features under the existing brand to capitalize on its success.
For instance, Coca-Cola introduced Zero, Diet Coke, and flavored versions to attract diverse consumers.
Brand Extensions involve introducing a new product under an existing brand leveraging its reputation to venture into a new category.
Apple expanded from computers and smartphones to wearables with the Apple Watch.
Multibranding involves marketing multiple brands within the same product category where each brand has a unique identity, targeting different consumer segments.
P&G markets laundry detergents Tide and Downy, catering to different preferences and price points.
New Brands are introduced when a company wants to diversify or if an existing brand's influence declines.
Toyota expanded its lineup to include hybrid electric and hydrogen fuel-cell vehicles appealing to environmentally conscious consumers.
Rebranding involves altering a brand's identity, image, or position to enhance its perception and relevance.
Dunkin Donuts rebranded itself as 'Dunkin'- to reposition as a beverage-focused brand.
5.10 Branding Strategies
Brand development strategies are systematic plans businesses use to establish and enhance their brand's presence in the market.
Line extensions, brand extensions, multibranding, new brands, and rebranding are essential strategies in brand development.
Line extensions introduce new variations of an existing product under the same brand. This strategy can strengthen the brand by catering to diverse consumer needs and fortifying its value proposition.
Brand extensions refer to leveraging a well-known brand name for a new product or service category. This strategy can help companies capitalize on brand equity and expand into new markets.
Multibranding involves marketing several distinct brands within the same product category. This strategy allows firms to target different market segments and benefit from the unique appeal of each brand.
Creating new brands is often necessary when entering a different product category or market segment that does not align with the existing brand image. It helps to avoid confusion and dilution of the existing brand.
Lastly, rebranding involves changing the corporate image of an existing brand. It is typically used when a brand needs to shed a negative image, realign itself with changing market conditions, or signify a significant change, such as mergers and acquisitions.