Telford, PA (PressExposure) May 07, 2009 -- The temptation is always there to get into as many parts of the marketplace as you can. All that business is out there waiting for you to snap it up if you make sure your company performs as many functions as possible.
There is a certain amount of truth to this, but it also comes with its own pitfalls you need to be aware of. When you extend into other areas of the marketplace you need to first consider what this will do to affect your brand name. After all, this is what people are going to look at when it comes to your company, and if you start changing what that brand name represents, you risk alienating people.
People like to deal with specialists in a field. They want to go to someone that really knows what they're doing and is excited about doing it. If they start to see that same company branch out into areas largely unrelated to their original field, they might not feel is if the company is really a specialist in any field anymore. When you begin using color printing to advertise all of those different products you now sell, people might start to think that you're just trying to make as much money as you can out of as many markets as you can.
This is what you combat when you attempt to expand, but that doesn't mean you aren't able to enter different markets.
Take the example of most department stores. When I shop at a Target store, there are certain brands of food, brands of clothing, and so on that are all owned and made by Target, but they have a separate name. Market Pantry is just one of the companies that Target owns that sells food.
Now, Target could've simply slapped their own brand name on their food, but the problem is that Target isn't known for making food; it's known for its department stores. People aren't going to be inclined to trust Target with making good food, but Market Pantry has a brand name that is strongly associated with good food. Rather than potentially harm their Target brand name, they simply started a separate division under a different name in order to create a different brand name with them.
This is what your company needs to be aware of if you want to start expanding. Why stretch your primary brand name too thin when you can easily create a new one? This way you can enter into numerous markets without harming your image as a specialist in your own market.
Expanding is always a delicate thing, and the way you handle your color printing and marketing for promoting it will be key to your success. Sometimes entering a new industry with your current brand name will work, but quite often it's best to create a new one rather than risk losing your image as a specialist.