You name it, let us call it; The strategy of choosing the right name for a new product
Choosing the right name is one of the most important decisions in marketing. Because it provides good information and creates a positive mindset in buyers. It means that the more products are offered with a brand name, the power of that brand will decrease and it may damage the mother (main) brand. For example, three Japanese car companies (Toyota, Honda and Nissan) wanted to change their direction from making small and low-cost cars to making bigger and more expensive cars. That’s why they choose new and different brands for their new products. They defined the coming of new brands like Lexus, Acura and Infiniti to make the line and relationship with the original brand less important and allocate a good market share for themselves. Until today, Lexus sales compete with BMW, Mercedes, Lincoln, and Cadillac in the American luxury car category, and sometimes achieve higher sales.
Generally, a new brand increases the information coverage. The media is dealing with new questions with a new brand. Like: Why did you use a new name instead of Toyota? In fact, to introduce a new brand, you should focus more on public relations and after the initial trust building is established, help maintain the position with advertising.
For example, General Motors produces a small new car and chooses the name Chevrolet Chevette for it. Of course, after years of average and weak sales, the production line is stopped. One of the mistakes that Chevrolet made was why should people buy a small Chevrolet that is not Chevrolet itself. Basically, new production products are not independently noticed by the audience, and the connection of the new product with the main name (mother) is always measured (Japanese car manufacturing companies are smart to observe this point).
After this incident, the Chevrolet company produces a new car called Chevrolet Geo. This time, he is trying his best to separate the Geo brand from the mother brand (Chevrolet). That is, in advertising and industry, they call it Geo, not Chevrolet. But the big mistake they made was that they sell Geo in Chevrolet dealerships and unconscious customers know it as Chevrolet Geo, not Geo. They call him a chicken, not a duck).
Of course, later they came to their senses and produced a new small car called Saturn and offered it in Saturn sales agencies and with proper information they met with success. For example, on the third anniversary of the car’s introduction, they hold a big party and invite car owners and their families and people who are active in buying and selling this car, and with these right choices, they keep themselves in the minds of the audience. Like what the lovely Harley Davidson company has been doing for years. It means a group of rigid fans who trade their cars and motorcycles only with their friends. The large group of HOG or the group of owners
Harley Harley Owners Group, which is the largest motorcycle club in the world.
P.N.: Taken from the book
The fall of advertising and the rise of PR
Sincere
@startup_30T
This post is written by Rimaazz1