Fragmentation, extensions, Subs, and spin-offs -
Yoga can save your business brand
Brand of a company is one of the largest, most important asset, one that has developed over the years, one that must be massaged maintained, cultivated and nurtured. For general information about company products and services, sometimes to put your brand through some exercises like yoga can lead to severe alignment, increased sales and improved profitability. The creation of brand extensions, brand fragments,Sub-head of brand and spin-offs that can identify the company closer to its potential customers, better serve existing customers and create greater value for the parent company over time.
In general, the practice of marketing, it is clear that being everything for everyone is not the most effective way to market your company and your products. The one-size-fits-all approach leaves much to be desired, since it is expensive and inefficient to reach the right customer at the right time withoutinto space to meet 99% of the time. But know this, yet many companies are considered to offer "what you need, we can do" in an attempt to win and serve customers effectively. Top-flight entrepreneurs have realized that the construction of its core business of "stick to their knitting," is a strong, effective strategy for stability and growth.
With the knowledge that the core business should be the only store to sell many companies in all theirNon-core activities, effective revenue from these businesses, regardless of their health. There are other solutions that are less tiring to use mainly revolving effective brand.
Service companies, particularly those that offer a wide range of services for a variety of industries are often too large - so much so that their brand is prone to suffer or efficacy is so widespread as to be irrelevant. One of the most powerful elements of a well-defined brandthe ability of the company, a set of properties strictly implemented to create easily identifiable and transferable to all services offered. It works without this central theme, the brand is less efficient and loses power.
A solution to this challenge is the creation of sub-brands or extensions, each with slightly different characteristics, place baskets of services more closely related. Market orientation and customer research will often point out the break points clearthe services the government to effectively group, depending on how customers use and perceive these services.
Sub-brands are presented as extensions in a different way - in general, the new brand, along with a slogan to identify the brand, namely "Orange-Glo, a subsidiary of Johnson SE" - the cache of the parent brand, SE Johnson , to "buff" the new product, Orange Glo and transfer these positive qualities to the new product.
Expansion tendscarry more aspect of the brand and nomenclature, and is more effective with closely related products. An example can be easily processed in the food industry will be: Cheerios and Honey Nut Cheerios. An extension is essentially a new-style version of the original product. The new product has the same beneficial properties as the original, but to serve as an improvement or a lateral move to a new market. General Mills owns many brands, and moreThis is grain, but the brand is Cheerios, without being extended, the name of the parent.
Fragmentation occurs when the main brand is all divided into different units of the same parent company owns. Coldwell Banker successfully created fragments that contain some of their acquisitions and essentially gave their inner turmoil of a brand outside. Among these, a residential property and a commercial one for financial services, one for the economy and servicesfor a loan service, all of Coldwell Banker nickname was with them. Fragments can be separated easily and can be sold as free-standing, independent unit, if they are profitable, so that the flexibility to remain consistent for the core business. This spin-off from a brand that take some of the most important characteristics as the original, but roam the farthest from the cluster from the core business.
Each of these brandsAdaptation strategies is to provoke a certain set of circumstances, that its implementation, based on the service model, customer profile, goals and objectives of the company and its management. Wide range of service businesses are often well served to adopt a strategy of fragmentation, so that pooled for baskets of services and effectively marketed to a customer's profile thicker. Most diverse conglomerate of companies often benefit from a combination of integration and spin-offsStrategy to gain some resources with the main brand of polish, and standardize, and then put them in place and start the free-standing company without redirecting significant resources to do so allowed.
Extension is often used to advertise the service or product mix gradually penetrate slowly into new market niches and expand the target market to expand into more sales. Sub-brands are often used to integrate acquisitions and to absorb the newly acquiredCompanies with the largest umbrella brand. This can only be pushed so far, especially if the parent has never shown evidence of a connection or in the possession of know-how in its core business of the new company. Best evidence of history, when AMF bought Harley Davidson motorcycle.
AMF is a manufacturer of sports equipment, basketballs low boats and bowling balls known. View on the map, motorcycles, another piece of exercise equipment, use the same direction MFATolerances and manufacturing techniques and marketing strategies for motorcycles, with catastrophic consequences. MFA brand was not strong enough to overcome the problems inherent in business processes and production, followed.
Quality, which was held earlier at a premium, rushed to the stores for sales and nearly destroyed the brand. Once a company to build bullet-proof-cycles for a given part of the population known to horse, now offered annoying leaky, unreliable bikes, the more time spent inShop on as the road, and had the back of public parades of those who are positioned to protect the parts fly off the back. HD-management eventually bought the company back from AMF and implemented highly effective, strict production standards and began to rebuild the brand. Finally, he addressed a fault near a runaway success story of the product brand, creating an iconic American brand in the process.
Mark HD is now one of the strongest inCountry, and now lends its cache to select and tested by hundreds of licensed products, continue large revenue streams and build brand, and spawning its own sub-brands like Buell (acquisition), Screaming Eagle (a company) and HD Road (extension).
Of course these are not brand gymnastics taken lightly but after considerable introspection and taken before the Council. If no in-house expertiseBrand experience on a product level, which often help to recruit a qualified consultant, to guide them through the murky waters of the touchy-feely brand differentiation in collaboration with a team of qualified business transition. However, it is done, a plan is required to take the card strategy for the five years to allow the team to assess the potential impact of these movements and mitigation measures to avoid the negative consequences of the changes.
How a company does, the changeState of the brand will allow them to more accurately group and potential customers, which are better and greater customer loyalty, increase the value of the life cycle of the company. You can create more robust sources of income over time, and in some cases, these types of changes may be a marginal companies to weather the economic struggle, but powerful enough for the construction of the cache, enabling greater success for the future.
