QLM1: Developing Brand Strategies
Developing Brand Strategies Template
1.
Consumers already trust Market Street Snacks Company for the quality of our healthy snacks, which allows consumers to be more willing to try our new sweet snacks. This aligns with our Diversification strategy because it helps our customer base maintain a level of familiarity and trust. Additionally, because our CEO and the owner of Middletown have a fantastic professional relationship, it will allow for a smooth transition – something crucially needed when diversifying into a new market segment.
2.
Having Individual Branding ensures clarity amongst consumers. We will keep our savory snacks under one brand umbrella, and sweet snacks under another, it displays our commitment to quality and health in both categories. This preserves the reputation of our original snacks and does not compromise our brand image, depending on the varying consumer needs within each segment. 3.
Having ChamoyBurst Fruit Mix as a product name immediately communicates our unique profile flavors, aligning with the Diversification strategy. It captures a potential consumer’s attention and interest, is a memorable name for a new sweet snack product line, and offers a modern
feel. Disadvantages
1.
Managing a diversified product portfolio can strain resources.
2.
Potential risk of consumer confusion due to individual branding.
3.
Marketing costs can increase with managing multiple brand identities.
Disadvantages Justification
1.
The disadvantages of managing resource allocation can dilute the effectiveness of both our Diversification and Individual Branding strategies. There is a possibility of having to maintain separate production
facilities, and personnel for each brand, which can be costly and, honestly,
inefficient. This can lead to a limitation of how effective Market Street can be in investing in company growth (innovation, product development, marketing), which are foundational for entering a new market, and maintaining a distinction between brands. 2.
If consumers are confused about the separation in Individual Branding, it could undermine the key goal of Diversification. For example, if consumers fail to see that Market Street Snacks Company offers ChamoyBurst Fruit Mix, it could result in missed sales and slower market adoption. Confusion could affect the strategic aim of diversification by not highlighting and leveraging the existing brand reputation. 3.
There may be a potential increase in marketing costs due to maintaining distinct brand identities. This additional cost may undercut the decision to diversify and individually brand ChamoyBurst Fruit Mix. For example, higher marketing costs can reduce overall profitability; this can lead to financial strain and make this strategy less attractive. Resources
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