Know Your Branding Limits
Some entrepreneurs believe in the power of quantity over quality. The common tendency is to launch as many brands as possible in the short period time. You need to put an end on this approach and start focusing on your initial brand. Otherwise, you run the risk of losing your entire business.
In The Origin of Brands Blog, Laura Ries warns companies about knowing your branding boundaries. While launching a second brand is a great strategy to broaden market reach and increase sales, the initial brand must be firmly established first and you must have additional resources.
The man who chases two rabbits catches neither. Unless he hires another man. Can your company afford the resources required to launch a second brand? And resources don’t just mean the money for a second marketing budget, but also the additional drain on management’s time and attention.
Build from your prior success. Do not think that your second brand will save your first brand. In my previous company, the policy is to have at least 2 years gap between product launches. This is enough to measure a brand’s performance and build strong customer base. Still, consider the behavior of your industry as well.
