Better Profits

A Few Questions On Brand Extensions

Posted on Jan 15, 2009 in Better Profits, How We See It Blog by Jeffrey Summers 0 Comments

You may be tempted in this economy to start thinking about extending your brand to other places in order to generate more sales. So here are a few questions to ponder before you do.

1. The first thing we do is stop blaming the economy for the failure of our existing revenue streams.
2. Get back to basics and look to see if you can extend your brand in any meaningful way that also makes sense for your business model and position.
3. Stop approaching the situation as a problem to be solved but rather an opportunity to innovate your way into a better business.
4. Realize that technology and accounting schemes will only take you so far. If what you want to do doesn’t add value to your guest experience it won’t work.
5. The action must be able to be folded into your existing marketing strategy. An afternoon tea daypart doesn’t make much sense for a gourmet pizza business, but it does for a coffee-sandwich shop.
6. Ask yourself, “Self, is the ROI of this investment large enough to impact my business long term or is this a short term fix?”
7. What existing resources are at my disposal that can help me realize better economies of scale in the rollout of this action.
8. Will this action help me gain share? Is this strategically viable given my current market conditions?
9. What’s my exit strategy in case this doesn’t work? What’s the downside?
10. Is there pent up demand or unmet need for this action?
11. Have current revenue streams been maximized?