Why do you need a sub brand? First, this strategy of branding architecture allows growing the range of services in the market, especially if it doesn’t coincide with the concept of your core business. It allows your business to reach new horizons and expand the sphere of influence. In addition, this method is subsidiary, which means it can have its own name, visualization and promotion strategy.
What are the advantages of a sub-brand?
We have already hinted at the biggest advantage of the agenda. Sub brand allows you to step over the threshold of the market where you haven’t been represented previously, and with your main business concept it would have been difficult to do so. Thus, you can exhibit a new brand to a specific market, but with trust that parent brand has already built.
Simultaneously you produce a line of new goods or services to a market and strengthen the good image of a parent company. If earlier people recognized your brand in one specific area, with the help of a sub-brand you can attract customers who otherwise would never have been interested in your services. Of course, such projects require funding, but the benefit is that if one of the brands experiences a crisis, the second one will not suffer.
People tend to upgrade faster if they associate themselves with the brand. When your business has an idea, proper framing and services, people easily find you, buy and ultimately advocate for your brand.
Does your brand need a sub brand?
Do the goods have consumers? This strange question is the most important. Ask yourself if your product or service matches with what customers might want. Goods are sold not because they exist, but because people need them. Do a thorough market research before launching.
Do you have enough funds and resources? Any expansion requires large financial, physical, intellectual and emotional costs. Is your company ready to search for investors, manage on your own and take responsibility in case of failure?
What is the difference between your parent and sub brand proposal? Of course, market development, consumer rise and capital boost sound very tempting. However, is your company ready to present a completely new product? If you create a sub brand just to release your existing products but with a different name, this will confuse and frighten off your customers.
Sadly, but such branding architecture often discourage small business. We can conclude that the sub brand is an expensive and costly idea that is beyond the reach of small businesses. Yet, if you have something outstanding to offer, you can fully apply this strategy, but with an appropriate scale.