How To: Expand Your Brand
Every organisation reaches a point where growth becomes an important focus. However, deciding on the next steps can be difficult, as there are different ways to grow a business. We’re going to show you (with tried-and-tested knowledge) how branding can be a huge asset to you, and how it can instigate growth!
The Matrix
Ansoff’s Matrix (cite) is a commonly referenced model. It acts as a strategic planning tool, providing four paths that businesses can take when addressing growth. If you haven’t come across this before – don’t worry! We’ll help you asses which route might be the one for you, as well as the implications that this could have for your brand strategy.
How will you plan to grow your business? Will you focus on creating new products and services? Or, will you target a new audience? Whichever route you take, your brand must be considered!
Market Penetration
Put simply, market penetration involves using your existing products and audience. By operating within the same arena, you will not introduce anything new, as such.
This route is often seen as the safest route, as it involves less change (and therefore less risk). However, your marketing strategies must be able to drive growth, alone. So, to stay competitive other promotional activity must take place to support you. In this case, a brand refresh could be exactly what you’re looking for!
For example, your brand can introduce new key values and / or an updated visual identity to show your existing audience that you care about progression. The brand is still moving forward (despite little product innovation) and it’s taking your audience with it.
Product Development
This option involves introducing a new product to market. In order for this method to be a success, it’s integral that you have thoroughly researched your customer, and the market segment. By conducting this research, and evidencing your product strategy, you will minimise the risk involved with product innovation.
Furthermore, you should consider if your existing brand identity matches up with this new product. Is this new product or service cohesive with the brand values, and can the brand support the marketing strategy required to push the product forwards?
If the answer is no, a sub-brand may be required. This is a common choice, used by the likes of Coca-Cola (think Diet Coke)!
Market Development
This strategy requires using your existing products whilst targeting a new market. By employing a market development strategy, you will need to understand the complexities of your new market of focus.
As you plan to target new segments, you must explore how your brand can appeal to them. Your marketing plans need to be consistent with the existing brand, so that you remain authentic and true to your original identity.
This doesn’t mean that you can’t make changes though, as a brand refresh could do just the trick! It’s important to ensure that you don’t alienate your current audience, whilst also making adjustments to hold the new market’s attention. For example, could you identify a new brand mission which appeals to both markets?
Diversification
The final strategy in the Ansoff Matrix is diversification, which means developing new products for new markets. This is seen as the riskiest strategy of all four, as this involves approaching unfamiliar territory on both a product and market basis. Whilst it can be riskier, it also involves the most innovation, so the returns can be high!
Creating a new product for new markets presents you with either option, a sub-brand or a brand refresh. This is dependent upon a few variables. Does your new product still sit well within your existing brand? If you see this product as part of the current brand, then perhaps you need to refresh your brand to reach the new audience.
Alternatively, if your product holds its own and is unique to the rest of your products, then a sub-brand may be appropriate. Not only does this involve carefully considering the existing products with the market and how you can compete with them, you must also conduct research into your new audience, what will they respond well to?
What’s next?
Overall, there is a lot to consider! Expanding your brand is a vital element for your growth, so do take time to think about a brand refresh, or even creating a new sub-brand.
We recommend exploring each of these routes, and identifying which option will be most viable for your organisation. Growth can be daunting, but it’s also exciting! Would you like support with this? Please reach out to us.
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