A brand diversification is a critical task to conduct and execute successfully, particularly for established brands that have a tendency to loose lucrative market share immediately due to wrong decision and evaluation. According to Somma (2014), the diversified streams are introduced to the businesses with integrated risks and dangers that demand early detection. Hence, diversifying into a new venture or plan would require a close analysis and alignment between the essentials.
As a brand manager of a reputed entity, I would initiate my diversification strategy with a solid objective. According to Linton (2012), objectives are necessary before diversifying a product and/or brand in order to detect the suitable adaption of the strategy, which could be offensive or defensive. Without concrete objectives, the strategy would never align in the direction of success.
Proceeding, the market research is a subsequent stage after the tentative creation of an objective. It will provide clear insights of related industry, activities and strengths of competitors, expectations of target audience, actual size of market share and its distribution among the industrial players. This will mold my basic objective and lead to the phase of execution.
In personal opinion, brand regulators should keep their core objectives flexible in order to align with market demands, activities of competitors, and changing environment. As a brand manager, I will take the environmental influences into consideration. The environmental influencers change at a rapid pace with consistency and transform the entire strategy of diversification om a significant scale. Hence, along with operations and market positioning of competitors and expectations of target audience, the environmental influence also play a significant role in the development of brand diversification strategy.
References
Linton, I. (2012). Product Diversification Strategy. Chron.com. Retrieved 29 August 2016, from http://smallbusiness.chron.com/product-diversification-strategy-40375.html
Somma, M. (2014). Brand Diversification: Extend With Caution | Branding Strategy Insider. Branding Strategy Insider. Retrieved 29 August 2016, from http://www.brandingstrategyinsider.com/2014/02/brand-diversification-extend-with-caution.html#.V8Q1nph94dU
