The term brand dilution has been around for about three decades. Writers and researchers in the field of branding have discussed it from many different angles. Barbara Loken, one of the most prominent experts in brand extension and dilution, along with Kevin Keller, have written interesting papers and studies in this field.
Keller define brand dilution as follows:
Excessive or careless use of a brand in offering new services and products in such a way that the brand cannot live up to its promises and loses credibility in the mind of its audience.
One of the most important investments for any brand is protecting its image and reputation. Launching new products should be consistent with the brand’s identity and values; it should align with the brand’s promise. This is the only way to ensure long-term credibility and keep your audience’s trust. You should always stay true to your brand’s essence.
Ask yourself:
If your new product can’t live up to your brand promise, over time your brand will lose credibility and value, and eventually disappear from your audience’s mind.
When you plan to expand your brand or introduce something new, think of your brand as a torch: every time you step into a new area, that torch should still light the way clearly. Otherwise, your new product or service could create confusion. If YSL starting a make up line, what quality level would you expect from its products?
a strong brand carries certain promises and expectations, no matter what product or service it touches. If a new move breaks those expectations, the brand risks dilution.
Many new products and services fail, and the market simply doesn’t welcome them. Even the strongest and biggest brands sometimes miscalculate in their product design or strategy and face failure.
So the question is: should every failure automatically mean our brand is weakened or diluted?
Kevin Keller believes: 👉 Not every failure means brand dilution.
Research shows that if your brand expands into unrelated areas and fails, your core brand’s value and image are usually preserved. In other words, a failed attempt in a distant field won’t necessarily damage your main brand. However, if you expand within your existing or closely related field and fail, that’s when your brand is at greater risk of dilution. Because in this case, customers closely associate the failure with your brand’s core promise.
Whenever you’re thinking about expanding your brand, ask yourself two key questions:
Only when the answer to both is positive should you take the leap.
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April 6, 2024