When you have a company that has products on the market, you have to decide if you want to expand the brand or keep it at an even level. Expanding your brand can be a delicate decision because you do not want to do any harm to your brand by expanding too quickly.
Some companies decide to expand their brand quickly in order to benefit in the short term, while others look for long-term success. To look at how brand expansion can weaken your brand you only have to look at car manufacturers. At one time the big three automakers were untouchable, consumers would be proud to state they drove a Ford, Chevrolet, or Chrysler. However, as the automakers introduced more and more models, there brands were weakened. Consumers no longer stated that they drove a Ford, Chevrolet, or Chrysler; they said they drove an Escort, Cavalier, or a New Yorker. This ultimately saturated the market, weakened their brand, and lessened their market share allowing competition the opportunity to move in to their territory.
That is not to say that weakening your brand is a bad thing or will not allow your company to increase profits. If you are in an industry that has weak or no competition, weakening your brand through expansion will open it up to a larger market share allowing you to increase sales and make a larger profit.
On the other hand, you have to keep in mind the consumers that want to buy your product or want to be aligned with your brand. Having a brand that is everywhere and open to everyone
might not be what the consumers are looking for. Think about the exclusivity of some brands like Rolex, not everyone can afford a watch of that caliber, and that is why the brand is strong with those consumers who can afford to buy the watch. Being exclusive does have its benefits as well as being available to the population at large.
Chapter 2 --- Contract the Brand
Having a brand that is associated with doing one or just a few things well will help you to build a strong brand. If you want to open a business, it is okay to sell just a few items or if you want to open a restaurant focus on being great with just a few dishes. Think of all the specialty stores that are out there that specialize in selling one thing or focus on a genre. Toy stores, for example, fit into this niche. Although they sell a variety of products, they are all geared to toys. Girls toys, boys toys it does not matter, when you are going into a toy store you know exactly what you are going to see and you know why you are there. This increases their brand, whether it is a well known toy store such as Toys “R” Us, or a neighborhood toy store.
The same goes for restaurants. If you want to open an Italian restaurant, do not include dishes that do not fit within the scope of your business. Focus on doing Italian dishes right and you will build a well respected brand for doing it well.