In the Fall we went in-depth on Pricing Strategy in an effort to help prevent number 30 on our list of the 40 Most Common Brand Problems…
Common Brand Problem Number 30: Unsuccessfully extending the brand up to a premium segment or down to a value segment
Analysis: Some companies have successfully employed this tactic to grow.(Honda, for instance, slowly extended from Honda lawn mower engines to Honda Accords (although they created the Acura brand for their highest end cars), it can be very tricky to execute successfully.
Key Point: Know what impact price segment extensions will have on your core brand. Conduct extensive consumer research before and throughout the process. There are many sub-brand and message subtleties that may be required to support such a move. Price affects quality perceptions and is an important brand-positioning cue.
Experienced a brand problem we should include? Share.
The Blake Project Can Help You Grow: The Brand Growth Strategy Workshop
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education
