For product and marketing managers launching a new offering within an established portfolio, it can be tempting to create a standalone brand. Don't give in—not yet, anyway.
A new brand doesn’t always make sense for long-term prospects. In fact, our default position is: don’t do it. At least not until you’ve examined your brand architecture strategy and built a clear case.
What’s happening and why?
A new product, service, or technology is developed within an existing portfolio, and the company launches it with a separate identity. This may stem from a legitimate business reason: to signal innovation, respond to competition (“everyone has a branded AI engine!”), or address issues with the current brand perception. However, it's important to consider the overall brand strategy and future of the portfolio when making this decision.
Why is an abundance of brands a problem for B2B companies?
Do you have extra resources? Didn’t think so. A new brand takes significant resources to grow and maintain. Having too many brands—and not being purposeful about how they're named, communicated, and fit together—can cause confusion amongst buyers. (See three common common concerns here, under “Have you created a monster?”)
Guilty as charged! How can I do this right?
In a new product/service launch, start with the assumption that a single masterbrand is the correct framework. (Even though it may not be. Stay with me here.) Let go of preconceived notions. Then build your case against the masterbrand, if you can.
Ask the right questions and articulate clear rationale for any non-masterbrand strategy. Some things to consider:
Who is the audience? What do they know and feel about our existing brand, product, services?
How and where does the new product/service fit within our offering? How will we communicate it in the broader picture?
What’s the long-term vision for our portfolio? How does this new brand fit, now and in the future?
Do we have the resources to grow and maintain a new brand?
How will future launches be handled?
Are internal pressures, politics, or boredom driving the choice of a standalone brand?
If you can make a business case for the brand to stand alone, congratulations! It’s time to make a new brand. (We love that too, by the way.)
If your brand architecture is having an identity crisis
As brand strategists, we’re lucky so many people love launching new brands. But often the smart move is to not create a new brand at all, and save lots of time and resources in the long run.
