Brand Extensions: Is it Time to Broaden Your Horizon?
Your brand is not just your logo, name, or website. It is much more than that. It can also be a collection of products, services, and ideas all under one umbrella. A client will ask you to create a brand extension when they want something that bridges their current product line with their new venture. Not every company is willing to release the exact same package for potential customers who are always looking for new opportunities to explore and experiment with what’s out there on the market.
Brand extensions can gain popularity with consumers who may have never tried the parent company's products past the first time they decided to buy them — they're broadening their horizons AND saving money! And speaking of saving money... Brand extensions will also save your company money. You're bringing in a new client, one who is more likely to be interested in investing in your product line and the price for that is lower than the original price of the brand's highly-branded products. This means you can reach more people with less money than if trying to gain a brand new audience on your own without assistance.
This is not to say that there can't be crossover between brands, but it should not be a certain degree of overlap. Think about marketing yourself as if you were competing for customers versus creating one new brand for customers which you then introduce across several different platforms at once. You'll need to be careful that you don't alienate your current customer base, because they have become accustomed to your branding and are used to the idea of being part of your brand.
While it can be easy to confuse brand extensions with acqui-hires, the two should not be confused with each other. Acquisitions give companies capital for expansion and growth, brand extensions offering new products for a lower price without taking away from quality control and branding on the original product line. But every brand extension is an expansion in some capacity, whether it be a partnership or an acquisition of another company that results in added services. Essentially, an expansion may mean additional services from your company added on top of the initial brand that you created.
The benefits of brand extensions vary depending on the type of products and services being offered. If your company is selling a product like lip balm, lotion, soap or other similar items, using your expanding brand as an opportunity to bring in new customers from within your customer base could also be good for business. You'll have to consider how well this works for you and make changes along the way if your branding is becoming too cluttered for potential customers to recognize. If you're expanding into clothing lines or cosmetics, then you'll want to see how different items stack up against each other in terms of cost. It could be a great opportunity to increase your market share or it could be an opportunity that falls flat with potential customers.
You may have an idea for a new business venture, but you're not sure if it will be worth the investment. You want to see how people respond to your idea and how much interest there is in what you're proposing. This is where brand extensions can help you gauge how well your product will do in the marketplace without having to risk too much initial cash flow on the venture. It can also help you decide whether or not you should create a new company for this particular product and then expand across different markets as you gain more interest from potential customers and investors.
Partnering with existing companies is something that can also be very beneficial to your company when creating a brand extension. There are plenty of successful companies out there who would like to work with another company in their industry and expand their reach by adding a new item to the lineup which will help them increase their profits. You'll want to find companies that are similar in size and have an attractive product line so you remain competitive in the marketplace during this expansion period. There are plenty of different ways available for your parent brand to expand, whether it be moving into a new market or opening a new branch office.
When you expand your business, you’re not just expanding it in terms of the offerings you make available to your customers. You’re also expanding the physical space where your offices are housed and transitioning into a new facility with a larger client base than before. This can be a huge undertaking that requires careful planning and consideration, especially if your company is moving into a new location or office building that was previously occupied by someone else. Pre-existing contractors and similar companies will have to be notified in advance of what's going on and they'll need time to move out of their offices and into new ones so they aren't displaced by the change.
Before you move into a new office building, you need to make sure it's the absolute right fit for your business. While it may be tempting to get a larger office space than you need, doing so can also be detrimental to your business in the long run if you don't use the extra space wisely. It should not take away from your company's productivity and efficiency either — having more space doesn't mean you have more time to do everything that needs to be done. If anything, it should help everyone on staff get more done with fewer distractions and interruptions while they're trying to concentrate on important work-related tasks. If there's too much space that's not being utilized, it might take away from the whole idea of being efficient by limiting the amount of time staff can focus on their job responsibilities.
If you'd like some professional assistance in finding a new space or moving into a new office building, you should reach out to a company like T. R. Jannarone & Associates which will be able to help you find a location or office space that will work for your company and make good use of the extra space you have available. There are plenty of different features to consider when looking for a new office location, including what's convenient for your clients. As you're trying to expand your company's presence, you'll want to make sure the building you choose has room for additional offices, a reception area for guests and plenty of other features that will help your company grow.
Scaling is a term used when describing methods which allow a business or organization to grow in size and scope without running into bottlenecks from getting stuck trying to do more with less. Increasing the quality of services provided while increasing the speed of quality service delivery is the name of the game. As an example, imagine an organization has a problem with their infrastructure - specifically how requests are made by customers coming in through their call centers.
Conclusion
If you're considering adding more products and services to your productive line of offerings, a brand extension can be a great way to do so without limiting the core branding of your company. It's a great way to use the existing equity that you've built from creating a successful product or service and branch out into new markets without having to spend any additional money. You need to be careful, though, because there are plenty of opportunities available for brand extensions which could give rise to problems down the road if you don't prepare for that expansion properly.
While it may seem like an easy solution for expanding your business at little cost, it's important that you consider all the pros and cons of going this route before moving ahead with it.