Market Entry with a Brand
When a company wants to enter a market, it must differentiate in that market with its products from the existing products so customers will consider buying it and enable the company to take advantage of growth options.
The reasons for entering a new customer segment or a new geographical market can vary greatly, for example the intention to internationalize or cooperative market cultivation strategies.
A market entry – with presumably high market entry barriers – cannot rely on pure support at the performance or needs level. It is therefore important to mobilize the brand for the entry: It allows the company to present a sensible overall image that can persevere in a new competitive environment. The brand thus plays a major part in any market entry:
By designating products with a brand name or an umbrella brand, the products become more easily identifiable for the customer, and anonymity of the product is bypassed. Well-known brands give customers orientation in purchasing situations that are marked by uncertainty: Simple T-shirts, for example, are upgraded by adding a logo (brand symbolism) and thereby lower the risk perceived by the customer. Unlike the mere product, the brand approaches the buyer on an emotional level.
Charged with the identity and value ideas of a company, the brand works like a battery. Thanks to this stored energy, the products not only promise to satisfy a need, but at the same time provide meaning and individual added value.
The brand condenses information that is relevant for the customer into a performance promise. The products must keep that promise. The entire product portfolio is in fact permanent proof of performance for the brand, which equips all products with values and content.
Product and brand are mutually interdependent and must therefore be closely linked in order to take advantage of the positive reciprocal effect.
Our recommendation:
Book: Reiz ist geil – in 7 Schritten zur attraktiven Marke