Should you put multiple products under one brand or keep them separate?
You may have started your business with one strong product or set of products. But as your business evolves you develop new products. You are then faced with the decision. Should you keep these new products as part of your existing brand, or do you create a new brand with its own unique image and story?
Some businesses have managed to create a brand and have all the products under the brand name. For example, Virgin started with Virgin Records, but they entered into markets as varied as aviation, finance, and telecommunications. The Virgin brand now includes Virgin Atlantic, Virgin Mobile, Virgin Wine, Virgin Money, and many more.
On the other hand, the parent brand may be invisible as the individual products have their own brands with their own unique identities and stories. For example, Cif, Dove, and Ben & Jerry’s are all brands of Unilever.
Which strategy is best? Which one is right for your brand? There is no right or wrong answer. But there are a number of factors you should bear in mind that may influence your decision either way. Let’s explore these factors.
Does the new product attract a different type of customer?
Who is your ideal customer? Does your new product target a vastly different segment? If the new product appeals to a very different type of customer with different needs and aspirations from the existing products, it may make good sense to keep the brands separate. That’s because the messaging will need to be very different to attract them.
For example, if you originally started your company to offer laptop repairs for the home user and you now wish to offer an IT Help Desk & computer maintenance to corporate clients, the family friendly image you’ve created may not have the right appeal or look professional enough when you’re reaching out to your corporate clients.
However, if you are a wedding planner and decide to add additional products, e.g. bridal gowns, mother of the bride outfits, etc., it may be advantageous to keep them under the same brand as you are reaching out to the same target market.
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Having different target markets doesn’t necessarily mean you should have separate brands, but it will probably make sense: 1. if the target markets have very different pain points; or 2. if your core mission is distinct when addressing those different markets. The language and style would need to be so different that it would be difficult to create a cohesive website or brand experience.
Does the new product have a different positioning in the market?
Does your new product position itself differently in the market? For example, if the existing products are budget and the new product is premium, it will probably be better to have them as separate brands.
For example, imagine if Estée Lauder brought out a budget range of cosmetics for a younger audience. They would need to change the messaging, imagery, and entire positioning to attract the younger consumer on a budget. In this case, it would probably be easier to create a separate brand.
Does the new product disalign with the current brand’s purpose?
Does the new product align with your existing brand’s purpose and vision? If there is an underlying mission or purpose that is echoed throughout all the products, a single brand may be a good option. However, if a new product aims to fulfil a different purpose, it may be better to create completely separate brands.
For example, Apple has a variety of products, including iPhone, MacBook and iPad which are each known in their own right but they all fit neatly under the Apple brand. That’s because they all fall under the same mission to provide the best user experience. There is consistency in their straightforward messaging and minimalist imagery that aligns with this goal.
Do you have the resources?
If you want to create and maintain more than one brand name, then you essentially need double the resources. That’s because you’d need a separate website, social media accounts, email addresses and other marketing platforms and campaigns to run each brand. This can be very expensive to maintain for a small business, though it may be necessary to succeed depending on your setup.
In conclusion, there isn’t a right or wrong answer of whether to create a separate brand. It depends on many factors and intricacies of how your individual business works. If the target market, positioning, and purpose are similar it’s best to stick to one brand. If they are different, it might be best to create a new brand. Put another way: If you answered positively to all four questions raised in this article, this could indicate you would benefit from having a separate brand. However, if you answered positively to only one or two of the questions, you need to weigh up the options and use a bit of intuition. What feels right? Does it make logical sense to keep them separate?
Have you considered having more than one brand? Why? Let me know in the comments.
