If you think multiple brand names will make your company seem bigger, think again. It’s tempting to create multiple brands, But if we think of a brand as a business proposition, how many do we really need? Consider the following advice:
1. Avoid information overload. Prospects in every market segment are inundated with thousands of value propositions. The best thing we can do for our company and potential customers is to keep things simple. There is nothing more powerful in an information-saturated world than clear, concise communication. It will make it easier for your prospects to remember you.
2. Remember, brands cost money. Every brand you employ eats up valuable resources. Brands need care and feeding. Think carefully about how many brands you are willing to support and what resources you are willing to invest to keep them viable.
3. Reuse, recycle. Reusing or recycling ideas or campaigns is a resource-saving strategy that many businesses employ successfully. It also works for brands. One strong brand can work effectively across several or all of your products while helping them build equity for one another.
3. Know there are exceptions. Companies that serve multiple markets with very different products should consider a multibrand strategy. The goal is to be the dominant brand. If your company is the top brand in the donut market, the same brand name is unlikely to work well for a diet product.
4. Keep it concise and memorable. Cost, confusion, and communication challenges add up to a good reason why small companies need to think carefully before trying to build multiple brands. Invest time in determining the potential of a single brand and the real cost of launching multiple business propositions in the marketplace. Concise, memorable communication is what it’s all about.
Vice-President of Corporate Strategy
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