A powerful brand provides a consistent and credible platform for geographic expansion, new product or service lines, and other new business endeavors. When a brand is established and trusted in one market sector, it can leverage that trust to help open the doors of a related market sector. It pays to attend to the care and feeding of your brand because that one strong brand can launch a whole family of brands.
One of the most difficult tasks in marketing is to get people to try a new product, especially if they’ve never heard of it and don’t think they need it. But, if that new product is associated with a brand that people already know and trust, it’s much easier to convert prospects into toe-dippers into customers. So a when popular brand like Coca-Cola decides to launch Diet Cola, they will have a much easier start than a company that’s totally unknown and launching its first brand. By the same logic, Apple was able to leverage the popularity of its iMac into iPods, iPads, iPhones, etc. And, once they had a popular music player, they faced no market resistance when they moved out of tech gear into iTunes. So a strong brand can drive new revenue by expanding the range of products and services a business can offer. It can even open up whole new market sectors.
Strong brands also find easy access to new geographical territories. Back in the 1970s, Coors beer was considered a rare treat on the East Coast of the USA. Why? Because it wasn’t distributed east of the Mississippi. It was so hard to get, its brand became near legendary, making it easy to open up the East Coast market.
Similarly, when Krispy Kreme donuts decided to expand to the West Coast of the USA, the entire state of California got excited. That’s because many Californians were transplants from the East and remembered how much they loved those donuts. They told their friends and everyone waited in anticipation for the first shop to open. That’s a strong brand.
Now, both Starbucks and Taco Bell are experimenting with selling wine and beer in some of their locations. They’re both keen to see if they can turn their quick-serve concepts into European-style cafes where people will linger longer and spend more. They can only make such a move because they have strong brands to begin with. If a one-location, mom and pop coffee shop suddenly started offering alcohol, it wouldn’t be a coffee shop anymore. It would be a bar.
And check out the very pertinent, attached article on Wegman’s.
No doubt about it; it’s worth making the effort to develop your brand – if for no other reason than a strong brand opens up so many opportunities for growth.
This is the second of an eight-part series, outlining the eight major benefits of branding. Can’t wait to learn about all eight benefits of branding? Download them here.
This week’s best branding reads Week of February 15, 2016
Why Do So Many People Go Crazy for Wegmans?
Wegmans shows how a strong brand can drive geographic expansion.
Can Advertising Fix The Volkswagen Scandal?
VW launches the world’s most tone-deaf ad campaign ever. These people are unbelievable, literally and figuratively.
Dunkin’ Donuts, Toyota, Justice Pay the Price for Overcharging Customers
Why do brands keep doing this? It always backfires!
Confusing Brand Strategy With Creative Strategy
Branding and Creative – Mark Di Somma draws the distinction between the two perfectly.
Kiehl’s Debuts The Derek Zoolander Center for People Who Don’t Age Good
A great example of two brands, Kiehl’s and Zoolander, teaming up for mutual benefit. Perfect match!
Brand Finance Ranks Nation Brands – 2015 edition
US or China? Can you guess who’s number 1?
7 Customer Experience Mistakes Brands Make
Per the author’s last point: In the end, your customer has to be eager to advocate for you. Nothing else matters.