Leverage your brand perception
Brand awareness and perception are critical factors if you wish to outgrow competition, and they need to be understood as long term goals of your business strategy. In this guide, we will point out some ideas to leverage your brand perception and making it stronger.
Developing new ranges of products
The first option here is trying to offer customers a greater variety of products. However, that does not mean that you need to come up with new product ideas, along with all the processes and costs that this kind of action involves. The truth is that launching a new product is always a risky business, since you can’t be totally sure on the outcome of it. That is why you can start by carrying out a thorough analysis of your product catalog in order to detect which products have the best or most favorable performance in the market. The reason for this is choosing one of such products and try to create new versions of it by adding extra features.
By adding new features you exploit existing resources and products to achieve greater profits for the company.
This is not a risk-free action and the results coming from a decision like this may not be the expected ones. Nevertheless, if developed cleverly and strategically, this can be an excellent opportunity to exploit and expand your existing resources in order to achieve greater profits.
Resulting product ranges coming from adding new features offer you the chance to appeal a greater group of customers and expanding the audience interested in a specific product, or even help you regain the interest of already existing customers.
When rethinking an existing product you can take several approaches. For instance, focusing on the product itself, you can try new features like allowing models in different colors and sizes, adding or improving its functionalities, or even come up with a new packaging. On the other hand, going beyond the features of the product, you can try to offer greater benefits coming from the purchase of such product, something that can promote customer loyalty. In any of the cases, the main purpose of this is get to new approaches and strategies through innovation, something that will translate in greater value, competitiveness and profits for the company.
Creating low-cost versions
One of the great assets you can have as a company is customer loyalty. For this reason, developing more affordable versions of an existing product can be a great option if you want to appeal customers who are keen on value for price. By appealing price-sensitive customers who were not buying your products before and offer them great value for price, you can turn them into loyal consumers of your brand.
Actually, this has become a very common approach. This is, brands that offer products with great usability, but with fewer features than the ones available in premium versions of such products.
One of the main objectives of brands nowadays is to stretch their consumer base.
High levels of competition in the market make it critical for brands that want to remain successful to find ways of making the most of products they already have and try to stretch their consumer base.
Years when customers remained loyal to brands and were willing to pay established prices without worrying that much on price comparison are long gone. The truth nowadays is that competitors keep showing up, irrupting into the e-marketplace with products of great quality at very competitive prices, and that is the reason why brands need to rethink their strategies and approaches in this new landscape.
Products across sales channels
Brands are now facing new challenges like how to use existing sales channels. Superstores tend to offer lower prices than those suggested by manufacturers and this sort of situation is making brands reconsider new ways of selling products.
Some of them keep track of what is happening to the prices of their products in the market in order to reach an agreement with existing distributors. On the other hand, there are also brands that have already decided to be the ones selling their own products, something that allows them to exploit the advantages of the online sales channel and gives them the opportunity to increase their market share, as well as having a much more accurate view of their products performance.
by the brand
Protecting the brand’s image
Today, the big challenge ahead is not the mere fact of creating a brand which looks more affordable or acceptable by a greater amount of customers. The real goal consists in achieving so without harming the current perception that existing customers have of it.
This sort of task is not easy, though. When carrying out new strategies or performing any changes in the branding, we’re talking mostly about reductions, the company risks having people believe that the quality of products may have diminished. Therefore, the actual and most complex question here is how to get to the low-price end without harming the perception customers have on the brand.
So, at this point, two possible scenarios can take place:
If your product or range of products has no remarkable differentiation from other similar products in the market, you risk very little by bringing down prices. The perception on products already considered as being average quality or price-oriented has fewer chances of decreasing even more.
If, on the other hand, we are talking about premium products with features which are truly proof of the quality and differentiation of the product, you do risk a lot by lowering your prices.
That is why finding a price (the right price!) which appeals customers means much more than just bringing down prices. You need to justify your strategy to your customers, explain the logic behind such changes. Otherwise, you really risk losing all quality perceptions you had already gained in the past.
Subbrands: A new approach
With a subbrand you can improve your positioning for low-cost products without harming the main brand.
Creating a whole new brand can become a really bad decision and it is something which entails a lot of work given that you have to re-build your brand reputation from scratch. Besides, you may be competing with other strong brands which have already a consolidated reputation for being price-oriented.
So, what is the solution, then? You can find other approaches like the so-called subbrand. By creating a subbrand you can find a good positioning in the low-prices end of the market without damaging the perception of your premium brand products.
The strategy here consists in creating and differentiating the group of products of greater quality or premium (parent) from the range of products within the brand aimed at reaching that low-price end would be part of the subbrand (child).
Nevertheless, this strategy, as in any situation, comes with advantages and disadvantages too. So, it is important to take each piece of information into account before taking any final steps or changes in your branding.
Products in the subbrand are preceded by the parent brand reputation, but at lower prices.
It gives the opportunity to offer a wider range of products and variety.
Customers’ perception can get changed helping the brand expand their audience and revenue.
Price reduction in the subbrand may damage the parent brand if not managed carefully.
Customers may ignore premium products in favour of low-cost ones.
Need to make a clear differentiation between child and parent in terms of features and quality.
Differentiation among products
Giving the subbrand its own personality is an extremely important factor, and such definition of personality will always take into account the following elements: value, quality, level of detail, price, use, target audience, and functionalities/features of products.
If products of your brand and your subbrand look way too similar and the only remarkable difference is price, then, undoubtedly, the main brand will die out. Why paying more if you can have what looks like the same product at a lower price? That is why it becomes crucial to make a clear distinction between product ranges, otherwise companies may risk harming their main brand’s image.
Features of the subbrand’s products must be differentiated from the premium one, helping consumers understand the reduction, no only in the price, but also in the quality and characteristics of that specific line of products. This is the way in which price reduction can be justified.
Creation of product lines with great value.
Development of high standards in terms of quality.
Higher price justified by premium characteristics.
Extended functionalities included in the price increase.
Design of product lines with acceptable value.
Defining products of medium or low quality.
Lower price justified by lower quality standards.
Fewer specifications understood from price reduction.