Aspects of Building Brands

Topic: Branding
Words: 408 Pages: 1

A brand is a product or company that evokes associations of a high-quality company in the consumer. Companies need to create a personal brand for achieving goals and loyal customers. For an enterprise, it means further development, less effort, and increasing profit. A manager needs to analyze the difference between line and brand extension and the examples of relevant companies, such as Uber, Colgate, and Shinola.

The distinction between brand and lineup enlargement depends on the development direction. The brand expansion looks for a new consumer segment or goods category, such as Hugo Boss which associates with men’s perfumes but expanded for women’s fragrances. Line extension implies the creation of new products in existing welfares. For instance, Coca-Cola creates a dietary product in the same category and brand. Brand and line extension is similar in a sense but different in directions.

Uber is an excellent example because the company owners expanded their brand on food delivery and found success. The idea was fortunate, as the company used the right resources such as a taxi to carry food. Moreover, the coronavirus boosted demand and helped the subsidiary grow massively and swiftly. The Uber expansion brand to UberEATS provides distributing risks; during the pandemic, taxis’ demand fell, and food delivery increased.

Colgate is an unfortunate example of brand showcasing because, in the 1980s, company executives tried to expand their brand by starting with frozen food. The logic was to eat and then brush the teeth. The idea collapsed because Colgate was deeply ingrained in consumers’ minds as toothpaste. The company’s marketers missed the mark on the brand expansion niche, thus, the parent company suffered losses from that decision.

Shinola is an admirable case of a brand demonstration because their hotels are famous. Brand politics is the capital division into multiple niches; this strategy allocates money and keeps the company if one slot does not operate competently. The significant risk is high competition with attractive niche brands. Shinola, through watches, leather goods, and hotels, positions as a lifestyle that allows the company to develop further.

Every profitable brand needs to conduct a strategic analysis before expanding. Uber used its resources precisely to enter another niche in the market. Colgate’s strategy was unsuccessful, as the brand was associated with toothpaste. Shinola chooses the proper positioning and slot for development, thus, it continues to convert. Analysis of strategies cannot guarantee a company’s success; however, templates are used to extend the system more clearly.

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