Is it better to launch a product under the same brand or make a new brand?

Anna King · 07-29-2009, 09:05 AM

I am going to launch a new product very similar to an old one on mine. The old product is still selling really good, so I am wondering if I should simply lunch the new product under a different brand, to perhaps get a larger market share without jeopardizing my existing sales.

Any ideas and thoughts?

dvduval · 07-29-2009, 10:28 AM

If you have a good reputation, it is always good to continue to build on that reputation, rather than trying to maintain "multiple reputations". In the past I tried marketing software on multiple sites, and found in the end that staying with one site was much better.

Alex Taylor · 07-29-2009, 10:38 AM

If your new product is very similar to the old product, it might be a good idea to replace the old one and no longer sell it. But if you think you'll get more sales between the two of them, it's probably best to sell it under a different "brand."

If it was me, I'd want to get as many unique products out there under the same brand.

Arted4Life · 07-29-2009, 10:42 AM

Quote:

Originally Posted by dvduval

If you have a good reputation, it is always good to continue to build on that reputation, rather than trying to maintain "multiple reputations". In the past I tried marketing software on multiple sites, and found in the end that staying with one site was much better.

I completely agree. But it also depends on what your selling and if people bought the older product, will they want to buy the newer one as well? If they would, then it's a good idea to use the same brand.

Scott Ames · 07-29-2009, 10:53 AM

Branding is tricky. I would vote to keep the old one and compete against yourself with the new one. The new one would be branded differently.

Toyota wanted to compete in the luxury market. They could build good cars, so why not have a high end Toyota? They could have kept the Toyota name, but I doubt they would be the highest selling luxury car they are today. You know the brand as Lexus.

Perhaps there is a reason we don't see Tampax brand cigars or Pampers fudge brownies.

LogoNerds · 07-29-2009, 11:12 AM

I highly recommend picking up a copy of the book Positioning by Jack Trout & Al Ries.

Scott Ames hit it right on the head with his Toyota example. Brand your new product on its own with its own position in the market. You can always cross promote the 2 products/brands.

Keith Kogane · 07-29-2009, 11:16 AM

Second what Scott and Nerd said.

Remember, you are not the product, nor the brand. (Unless you're Martha Stewart.) If you're operating in a single market, go for separate brands. If you're operating across multiple markets (like Martha Stewart) then you'd want an umbrella/lifestyle brand to get loyalty purchases across the markets.

Anyway, hope that helps. :P

I'll second the Trout recommendation too. Great book.

07-29-2009, 09:05 AM	#1
Anna King Ensured Success Join Date: Jan 2009 Posts: 14 Thanks: 2 Thanked 0 Times in 0 Posts Social Networking	Is it better to launch a product under the same brand or make a new brand? I am going to launch a new product very similar to an old one on mine. The old product is still selling really good, so I am wondering if I should simply lunch the new product under a different brand, to perhaps get a larger market share without jeopardizing my existing sales. Any ideas and thoughts?

07-29-2009, 10:28 AM	#2
dvduval phpLD master War Room Member Join Date: Dec 2006 Location: Silicon Valley Posts: 2,970 Blog Entries: 3 Thanks: 44 Thanked 307 Times in 259 Posts Social Networking	Re: Is it better to launch a product under the same brand or make a new brand? If you have a good reputation, it is always good to continue to build on that reputation, rather than trying to maintain "multiple reputations". In the past I tried marketing software on multiple sites, and found in the end that staying with one site was much better.
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07-29-2009, 10:38 AM	#3
Alex Taylor HyperActive Warrior War Room Member Join Date: Mar 2009 Location: England Posts: 476 Thanks: 30 Thanked 60 Times in 48 Posts	Re: Is it better to launch a product under the same brand or make a new brand? If your new product is very similar to the old product, it might be a good idea to replace the old one and no longer sell it. But if you think you'll get more sales between the two of them, it's probably best to sell it under a different "brand." If it was me, I'd want to get as many unique products out there under the same brand.

07-29-2009, 10:53 AM	#5
Scott Ames Senior Warrior Member War Room Member Join Date: Jun 2006 Location: West of Rockies Posts: 5,556 Thanks: 363 Thanked 665 Times in 325 Posts	Re: Is it better to launch a product under the same brand or make a new brand? Branding is tricky. I would vote to keep the old one and compete against yourself with the new one. The new one would be branded differently. Toyota wanted to compete in the luxury market. They could build good cars, so why not have a high end Toyota? They could have kept the Toyota name, but I doubt they would be the highest selling luxury car they are today. You know the brand as Lexus. Perhaps there is a reason we don't see Tampax brand cigars or Pampers fudge brownies.
	Action is the foundational key to all success. - Pablo Picasso

07-29-2009, 11:12 AM	#6
LogoNerds The Big Nerd War Room Member Join Date: Dec 2008 Location: Toronto Posts: 543 Thanks: 7 Thanked 83 Times in 42 Posts	Re: Is it better to launch a product under the same brand or make a new brand? I highly recommend picking up a copy of the book Positioning by Jack Trout & Al Ries. Scott Ames hit it right on the head with his Toyota example. Brand your new product on its own with its own position in the market. You can always cross promote the 2 products/brands.
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07-29-2009, 11:16 AM	#7
Keith Kogane BadMotherShutYourMouth War Room Member Join Date: Jun 2008 Location: The South, USA. Posts: 686 Thanks: 75 Thanked 845 Times in 161 Posts	Re: Is it better to launch a product under the same brand or make a new brand? Second what Scott and Nerd said. Remember, you are not the product, nor the brand. (Unless you're Martha Stewart.) If you're operating in a single market, go for separate brands. If you're operating across multiple markets (like Martha Stewart) then you'd want an umbrella/lifestyle brand to get loyalty purchases across the markets. Anyway, hope that helps. :P I'll second the Trout recommendation too. Great book.
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