Should this be a new brand?
At some point, an ambitious business may run into the problem of launching a new service, expanding or taking over another business, and not knowing what to call it. Do you launch under your existing brand, a sub-brand, or something separate altogether?
On the surface, this seems like a simple naming problem, but if you dig deeper into it, you're really asking a few core things:
- Do you want people to trust the “new thing” because they already trust you?
- Does it fit with what you're already known for?
- Does it actually speak to the same target audience as your current brand?
- Are you adding to, or risking the reputation you've built?
- And, could your current brand strategy even do this new launch justice?
There's actually a term for this: brand architecture. It's how your brands, products and services sit underneath each other. Get it right, and businesses see 3.5 times more visibility than those who don't. You see this everywhere, but you probably don't notice it when it's done well.
Apple never launched a new brand for the iPhone or the iPad. Same trust, same customer, both leaning on the reputation and mental associations Apple had already built.
Qantas took a different approach when a new competitor entered the market with cheap fares. Competing on price under the Qantas name risked tarnishing the reputation they'd spent decades building, so they created a separate, budget-friendly brand in Jetstar instead. That let them capture the growing leisure travel market, without putting their premium name on the line.
Now I know, most of us aren't quite at Apple or Qantas’s level. But we’ve all got something we're known for, and both approaches can work from there.
One name means every launch adds to the same reputation and associations. Separate names mean you’re not asking one brand to speak for two different things. The right call depends on what you want your brand to actually stand for, and whether the new thing helps to say that, or gets in the way.
Want this in your inbox?
This is taken from the weekly email written by one of our directors, Roberto Boi. Every Thursday he shares observations, ideas and perspectives from the work we’re doing day to day at Dilate. If you’d like to get it delivered straight to your inbox, you can sign up here.
