Running a company is not an easy task. Everyday there is a new challenge and we have to keep ourselves up for it to face. Whether it is dealing with clients, employees or taking decisions which will impact the whole company. Day to day planning, building strategies whether it is moving ahead from your competitors or marketing strategies, it takes a lot to do it. Any seasoned entrepreneur will tell you. I am running a branding agency and I can relate to other founders & CEOs out there.
You take any industry whether it is car & bike industry, Food, sports, etc. they will tell you how important it is to take the decisions wisely.
They will also tell you it isn’t just about listing your products and services in the market. It’s not even finding financial backing, either – yes these are important in running a startup, an MNC or big corporations.
One of the most important aspects of running an organisation is the branding. You just started or it’s been years, branding is one thing which ties everything – not just colors, fonts, branding logo, branding icon and so on. It’s the brand strategy behind every branding decision made.
As the business world is emerging to evolve every year, companies need to find new ways to build a brand stronger. They need a new branding marketing strategy to be most effective in today’s competitive marketplace. Each day new platforms are being launched, algorithms keep on changing. So founder’s need new branding guidelines along with the branding strategies to keep them ahead.
Here are 4 branding strategies every founder should know and apply. If you are from the automobile industry or belong to the hotel industry, these 4 branding strategies will definitely help you. These 4 branding strategies work in every industry and have helped every company’s founder out there.
So as your company is developing, these 4 branding strategies will help you in every way.
Let’s get started:
What Are The 4 Branding Strategies That You Should Know
Branding equity is very important. Brand equity, in the market, is the worth of a brand in and of itself – i.e, the social value of a well-known brand name. The owner of a recognised brand name can generate more revenue as compared to a brand which is not known. Consumers trust those brands which are well known as compared to lesser-known brands.
It is important to keep yourself updated to build brand equity. These 4 branding strategies will help you build your brand like a pro and grow your business to 10X:
1. Product Line Extension
4. New Brand
1. Product Line Brand Extension Strategy
In this product line brand extension strategy, a new brand is launched in the market after consolidating your brand’s name in a related field. Let’s suppose you are well known in the automobile sector and have a good loyal fan base. There is a need from the customer which demands a new brand, then brand extension strategy will be implemented.
Consider taking Lamborghini as an example. They are well known for their sports car and we all know how famous they are for that. But they added the Lamborghini Urus to their product line. Lamborghini Urus has the soul of a super sports car and the functionality of an SUV.
So if you are running an organisation, a startup, look at what consumers are demanding and then add a new product to it.
Another example we can take is of Apple. They introduced the iPhone Plus along with the release of iPhone 6. The iPhone Plus was introduced to satisfy consumers who were looking for bigger screen options. This not only made consumers sticky but gave a boost in sales. This is one of the 4 branding strategies which is very effective.
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2. Multi-Brand Strategy
This is one of the branding strategies, multiple brands run within the same market. In this one brand competes in the same product category. Most large companies use this strategy so that it can stop competitors from entering into the market.
We can take the example of Pepsi where it has multiple brands under one roof which compete with each other.
If you are planning to use this multi-brand strategy the only disadvantage you’ll have is the cost and time needed to develop everything. From a new brand name, new branding logo, its branding icon, branding guidelines and much more will be new. But if done well, you’ll get hold of the marketplace and generate more revenue.
3. Brand Extension Strategy
This is the third brand strategy amongst the 4 branding strategies which should be implemented very carefully. If done wrong, the whole brand reputation will be spoiled.
In the brand extension, an organisation broadens itself in the market by introducing more services under the existing brand name.
Let’s suppose you are a branding company or agency which is well known in its region, but now you want to enter the interior design market. Others may not consider this as a good move which can spoil the brand name.
Another example can be a furniture company entering into the beverages market. This is totally different from what they do.
It can confuse the audience, and will be tougher to build a brand that you aim for. But if you do it correctly, you can build a reputation like Tata Industries. So being a founder of an organisation, if you are planning to do something like this, you must know this branding strategy.
If you really want this, hiring a branding expert is the best viable option. They will guide you at every step.
4. New Brand
The new brand strategy is the strategy when a firm creates a new brand to go along with a new product.
You start with everything new which includes brand name, tagline, branding logo design, communication strategy, website, employees, research, branding marketing strategy, etc.
It’s very very time consuming and this brand growth strategy is the most costly amongst the 4 branding strategies. It can reap most benefits if done correctly but you should have a good amount of budget to do it. All your money will get divided into multiple areas so take our decision wisely.
We have entered into the design business, another we have a clothing line and one more is in the planning stage.
Building strategies whether it is moving ahead from your competitors or marketing strategies, it takes a lot to do it. I have helped others scale their businesses so I know what they go through. These 4 branding strategies will definitely help you make big decisions. In my next post, I’m going to discuss What is Brand Positioning and how to position your brand like a pro.
All I want to do is help founders and CEOs build a brand which is an infinite player in the market. If you belong to the automotive Industry or any other industry, need help in building branding strategies for you, let me know. Check our case studies, how we helped our clients grow up to 740%. Do contact us to scale your brand to 10X.