I always nervous when my boss asked me or discussed about ‘brand extension’ or launching a new product related to an existing brand. In my opinion it’s not easy as it seems.
For me brand or product extension should offer a different benefit and/or to attract another market or create a new segment than its parent brand. Its also must translating a positive perception about the brand to the product.
For example, if customers associate brand X has a good fragrance perfume, they must infer that any product from that brand is having a good fragrance also. Loyal customers of the brand may be more willing to try product extensions. It will affect in turn to decrease the cost of marketing the new product.
If a new product launching over promising and can not deliver a perception, the product will be endup disaster, drag down the well existing products, loaf away marketing budget, and diluting the all branding process.
Many companies have a regulation that brands should only be extended when the new product or service addresses genuine consumer needs and is based on accurate knowledge of the parent brand’s core strengths in the minds of its customers.
Having more products doesn’t always mean achieving more profit – especially in the long term.
So, new product or brand extension should:
- Strengthen the existing brand.
- Attend to additional users.
- Bring the new users to become a loyal user.
If the new product can not deliver above, better to stay focus. Companies who stay focused on a particular market are perceived as specialists, and specialists are usually thought to know more or be better.
What we should consider before decide to launch a new product
- What is the long-term vs. short-term impact of the extension to my company and existing product or brand?
- It is a right timing to step into a new category and new market?
- What value do the new add to my brand?
- What unmet customer need does the extension serve?
- How does the extension leverage my brand’s strengths while avoiding its limitations?
- If our current distribution is still lousy, how about products availability?
- How about your budget, is it enough to make BIG BANG impact?
- Contingency plan to interception competitors counter attack.
Maintaining long-term brand healthy is more important than short term sales number.
inspired by my company & john williams
Gerak tubuh yang sangat teratur, memainkan gerakan tangan dengan kaku dan tidak ekspresif banget (karena gitu-gitu mulu…hihihihi) naik turun telapak tangan menghadap keatas, trus diputer menghadap kebawah, dada yang membusung (mungkin karena Pak SBY menahan nafas…..fuiihhuuuhh) muka yang sangat serius & prihatin serta intonasi suara yang pass……
