From the course: The 22 Immutable Laws of Branding (Blinkist Summary)

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Core brand identity and expansion

Core brand identity and expansion

From the course: The 22 Immutable Laws of Branding (Blinkist Summary)

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Core brand identity and expansion

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- [Narrator] Blank number six. Expansion should only be undertaken when it doesn't damage a company's core brand identity. We've seen that line expansion as a counterproductive strategy. So what do you do if you want to expand your company? One route many brands have taken is to launch sub-brands. That gets us to law 13, the law of sub-brands. The leading hotel and motel company, Holiday Inn, provides an instructive example of the risks inherent in this strategy. After deciding that they wanted to expand into the upmarket segment of the market, the company launched a new sub-brand called Holiday Inn Crown Plaza. That must have sounded like a stroke of genius in a board meeting, but the idea didn't pan out. Customers making use of dependably affordable Holiday Inn hotels weren't in the market for a stay in a fancier and correspondingly pricier hotel. When the company conducted surveys, its customers told them as much.…

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