Posts Tagged ‘brand extension’

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.

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What if your brand name is inspired by a product sub-category?

September 15, 2015

Confusion is the simple answer to this situation. At Spotlight we believe, when you have a brand name which also represents a category or sub-category, confusion starts appearing on surface.

Organic India

If you are a tea lover and experiments with variety of teas, you would have heard of Tulsi Tea. A very well-known brand of Tulsi Tea is Organic India. By mixing three variants of Tulsi (Citrus from Vana Tulsi, Spicy tone from Krishna Tulsi and Calming depth from Rama Tulsi) Organic India offers caffeine-free Original Tulsi Tea, which is stress relieving and rejuvenating. One of your friends explains you all these benefits of Tulsi Tea, and so you decide to purchase one.

Tulsi Tea GMTeaYou visit a store and find a pack of Tulsi Tea by G.M.Tea Packers Pvt. Ltd. so you buy it. Now what will happen? There will be a clash of expectation. You purchased it considering benefits of Holy Basil leaves but the one you have purchased is Dano or Patti or Kitli Special tea; no tulsi leaves as an ingredient. Higher chances, you will develop a negative impression about the latter brand, the one you have purchased. This happens because at-large Tulsi Tea is understood as a product having Holy Basil as an ingredient rather than a brand name.

So when an ingredient is an important factor in decision making; in those cases, you must avoid a brand name which would easily get associated with that product category.


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