Posts Tagged ‘brand consultancy’

The critical decision in marketing, line-extension or new brand launch

March 9, 2016
KJspot

Kirit JAsani

When a marketer of a successful brand is having an opportunity to enter a new category, this question comes to surface whether to extend the brand in new category or to introduce a new brand? Decision is not easy!

In such a scenario, normally logic comes out as a winner and not the practical thinking. Logic says, ‘our x brand name is very well-known and is trusted by a huge customer group. So it will be very easy to have acceptance of new product under the same name. Further, we will save on cost of promotion as we would be promoting only single name’. As I mentioned, logically absolutely correct! But marketing is neither that logical nor that simple. Let’s understand it with a practical example.

Limbu Logo

Kashtabhanjan Food and Beverages LLP is the owner of brand ‘Limbu’. Under the brand-name company was selling soft drink. Gradually, they introduced Thick Shake and Ice Cream under the same name Limbu. Why under the same name? Logic, Limbu brand is popular, available at around 45 franchisee outlet and no need for separate budget of promotion. But marketing is not that simple, so we had a tough time to convince all partners of company that customer of soft drink and customer of ice cream is different. You buy soft drink products, mostly to assist in digestion whereas ice cream for taste. Now it was easy to see; the target audience was expecting a totally different benefit from the same name. Further, Limbu Ice Cream as such was misleading. The first-time user might buy it under the influence that the product is a creation with Limbu (Lemon) as an ingredient.

Livosty logo

So under the guidance of Spotlight Communication finally client agreed to launch new brand, Livosty. Today, a wide range of Juicy, Dolly, Chocobar, Kulfi, and Cone is available under the brand-name Livosty. Limbu continues to serve as a soft drink outlet with its franchisee model. Now, the company is able to take advantage at both the fronts.

Remember, if there is no synergy in expectations from two different categories, kill the logic. Go with practical approach and launch a new brand.

Wordpress white


%d bloggers like this: