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Expand the Brand

When you have a company that has products on the market, you have to decide if you want to expand the brand or keep it at an even level. Expanding your brand can be a delicate decision because you do not want to do any harm to your brand by expanding too quickly.

Some companies decide to expand their brand quickly in order to benefit in the short term, while others look for long-term success. To look at how brand expansion can weaken your brand you only have to look at car manufacturers. At one time the big three automakers were untouchable, consumers would be proud to state they drove a Ford, Chevrolet, or Chrysler. However, as the automakers introduced more and more models, their brands were weakened. Consumers no longer stated that they drove a Ford, Chevrolet, or Chrysler; they said they drove an Escort, Cavalier, or a New Yorker. This ultimately saturated the market, weakened their brand, and lessened their market share allowing competition the opportunity to move into their territory.

That is not to say that weakening your brand is a bad thing or will not allow your company to increase profits. If you are in an industry that has weak or no competition, weakening your brand through expansion will open it up to a larger market share allowing you to increase sales and make a larger profit.

On the other hand, you have to keep in mind the consumers that want to buy your product or want to be aligned with your brand.  Having a brand that is everywhere and opens to everyone might not be what the consumers are looking for.  Think about the exclusivity of some brands like Rolex, not everyone can afford a watch of that calibre, and that is why the brand is strong with those consumers who can afford to buy the watch. Being exclusive does have its benefits as well as being available to the population at large.

 


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