5 Basic Questions Before Extending Your Brand
Some entrepreneurs are guilty of extendingtheir established brands without a well-supported justification or totally based on gut feel. Maybe it’s the notion that it’s very easy to piggyback on the success of one brand than to start from scratch.
However, a wrong brand extension can do more harm than good in the overall performance of your business. In many situations, it can confuse or even alienate your existing customers. To make matters worse, it can drain your marketing budget. Before going for a brand extension, ask yourself these important questions:
- What’s the added value of this line extension to my parent brand, both short-term and long-term?
- In what way will it strengthen my parent brand?
- How will my current customers react to this plan?
- Am I addressing an unmet need different from what my parent brand is serving?
- Is the parent strongly associated with a particular product category or do I have the flexibility to enter in an entirely different category?
If you have clearcut answers to these questions then you can go ahead with your brand extension. Otherwise, take time to reconsider your options and come up with a better plan.
