This article examines brand development strategies for both new and established brands. We will also look at brand extension development techniques.
Your plan for achieving brand development is called a brand development strategy.” During brand development, a variety of internal and external factors influence customers’ relationships with brands. These factors include demographics and psychographics (internal) and culture and lifestyle(internal)
What Is Brand Development?
What others perceive of you as a company determines your brand. You present the character in your communications and actions to the consumer. Your brand includes your logo, tagline, colors used, website, etc.
Developing and improving professional services in a brand is known as brand development. Internal variables like the culture or motives of consumers are more difficult to modify than external factors like the features or appealing qualities of the brand in terms of consumer attitudes and transformation.
The success of any brand depends on strategic efforts to form relationships with consumers by creating general perceptions tied to the organization.
Why Is a Brand Development Strategy Necessary?
Your “brand” comprises your company’s visibility and reputation. Maintaining your audience’s interest in it requires a straightforward marketing approach.
A solid, clearly defined, and people-centric brand development strategy is essential regardless of your long-term goals.
The following are some significant reasons for building your brand:
- To increase awareness. You can attract attention by releasing new information.
- To increase customer loyalty. You encourage clients to return for more by inspiring irrational loyalty. Or because they feel your brand is suitable for them.
- To widen penetration. No matter how devoted your customers are, your clientele will diminish. People become disinterested, and their circumstances change, etc.
- A powerful, distinctive brand can help you capture more market share by consistently gaining new clients. You might even use it to break into new markets.
- To increase volume. Increasing purchasing frequency results in increased sales.
- To make it simpler to introduce new goods or services. People will have greater faith in your brand and be willing to follow you into new industries.
Must read: Discover How Thank You Messages Improve Survey Quality!
Types of brand development strategies
Range of product expansion
To appeal to an existing market, a company will sometimes launch a product similar to one it already sells. The new item competes in the same big category as its stablemates and carries a well-known brand name. Examples include new pack formats or taste variations because they give consumers new ways to enjoy the brand.
Example: Cadbury uses their brand’s brand recognition when they launch new products. Their brand inspires confidence, while the freshness of the product arouses interest.
Portfolio brands that tap on long-established brand equity frequently employ this tactic.
Extension of a brand
Introducing goods or services under an already-established brand name in a new market is one way a company increases its market share.
Example: Disney Hotstar is a successful extension of the Disney brand.
This tactic also uses the trust and brand equity that have grown over time, luring customers to select the company in a new market with no prior presence.
Customers frequently only need to take a little leap of faith to transition from the brand’s core market to its new front line. For instance, if you currently own an Apple MacBook, you might be more likely to buy an Apple iPhone.
Multi-brand
Introducing a new brand in an existing category is a multi-branding strategy. It is competing with itself, which is the opposite of product extension. This tactic succeeds by undercutting rivals for market share.
Example: Coca-Cola has taken over the beverage market with Costa Coffee, Minute Maid, Fanta, Sprite, Dasani, and various other brands.
Larger businesses tend to use this method more frequently. Notably, holding companies and portfolio brands are often accelerated by acquisition. However, on a smaller scale, too, multi-branding can be successful.
New brand
Introducing a fresh brand with all new and unusual elements is a pillar of brand development. It constitutes a New positioning, a new product offering, a new product identity, and a new logo.
Example: The category of chilled, ready-to-drink coffee by Starbucks.
Although this is a risky tactic, it has the potential to produce the best results. You can grab (and perhaps even create) a new market when you develop a brand and product from scratch.
Every company with an online presence must frequently create content to draw viewers. The purpose of the content is to grow a consumer base gradually.
Ensure you have a strategy in place so that all website visitors interested in your content will become customers.
Identify all content marketing technologies you use, such as content management systems and SEO software.
Strategy For Content Marketing
- Competitor Analysis
When you develop a full-blown brand strategy, you must study your competitor’s strategy. It will help you understand the difference between you and your competitor. It will also help you concentrate on what to focus on and what not to.
- Co-branding
In our influencer-inspired environment, co-branding is becoming more widespread. It is a combined product release by two or more brands, providing each organization’s users with new information.
Examples: Adidas and Yeezy, Nike and Michael Jordan, and GoPro and Red Bull
Great brands work together to increase their market share and profits by leveraging one another.
- Licensing for brands
In brand licensing, you can expand your brand without inventing a product or even managing private labeling. Leasing the use of your brand assets to many other businesses is all that is required.
This commonly happens in the world of movies and animated cartoons.
Example: Toys, merchandise, and other products bear the trademarks of Marvel, Disney, and Star Wars, for which they get a license.
- Own or private-label branding
Own-label branding is effective for companies with solid brands and can be applied to expand into unrelated markets.
Example: Amazon privately labels goods under Solimo and Amazon brands.
Conclusion
While some companies remain at the top of their field for decades, others lose their relevance over time. Successful companies put time and effort into maintaining their vitality, which calls for ongoing brand development strategies.
No matter how well-known or successful your business is or what you sell, the key is to entice customers to do business with you consistently. For the future success of your company, it is essential to nurture your brand. Therefore, to stay current, you must continually develop and reinvent yourself.
