A Question Of Line Extension

Branding Strategy Insider helps marketing oriented leaders and professionals like you build strong brands. BSI readers know, we regularly answer questions from marketers everywhere. Today we hear from Sajid, a Marketer in Islamabad, Pakistan who asks…

Hi Brad and Derrick, I own a fashion house in Pakistan where we are currently offering, bridal and formal wear for the eastern market and by the grace of God it is going great. I am a frequent reader of Branding Strategy Insider and would like to have your guidance on the subject below:

We want to introduce another line of garments for a low price range buyer. Should we make a line extension of our parent brand for such product or should we continue to have the same line under our main brand. I have a fear that if we continue to have the same brand for this new product it might kill the image of our existing brand and people will not prefer to buy our high end product.

Thank you for your question, Sajid. You are right to be concerned about a less expensive line of products potentially changing the perceptions of a brand that sells higher end products. If you want your brand to remain a premium brand (assuming it is perceived to be that way today), it would be better to create some perceptual distance between it and the new line of less expensive garments. There are several ways to do this:

  • Create a new brand for the the less expensive garments and sell them in a separate store (assuming that your current store and product brands are the same and that they are associated with higher end formal wear and that you want the brand to continue to retain the association with formal wear)
  • Create a new brand for the less expensive garments and sell them in a different location in your store (assuming that your current store and product brands are the same and that it is acceptable to you to have the brand become more associated with the store itself and a broader mix of garments)
  • Create a separate store brand and separate brands for your formal wear garments and for your other lower priced garments and decide what you want each brand to stand for. Obviously, the store brand’s perceptions will be driven by the type of merchandise sold in the store, including which brand or brands you decide to sell in the store.

If you make the new line of less expensive garments a sub-brand or line extension of your current brand, it will create a new perception of that brand, one that is less associated with formal wear and high end products and more associated with a broader mix of clothing. However, if you do this, you will have to determine what the brand now stands for and what makes it different from other clothing brands. I would not recommend this approach given your concerns.

One final comment on your situation. It is not clear to me if your formal wear brand of products is the same as the store’s brand. If it is, it will be difficult to sell different brands in the store without changing the perception of your brand. If you do this, you will need to be very careful about what other brands you sell in your store.

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One comment

  • Ravi Anand

    November 19, 2010 at 1:57 pm

    Pertaining to the same Question My advice would be that launch the new economic line with the same name..but rename your premium class product again.This strategy will let the new customers think that they are buying your brand in lesser price and your premium customers would also be happy that they are wearing something distinct.This is the strategy followed by Zodiac when they launched Zod and park Avenue when they launched Parx..

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