How to successfully launch a brand.

arcadia brands2019-03-25

How can businesses successfully launch new brands that are automatically loved by consumers?

With finite resources (time, people and capital), launching a new brand can be stressful, and sometimes, it can get lost in the way without knowing where to start while the finish line is blurry.

Whether it be a new company wanting to launch new brands or an existing brand wanting to launch a brand as an extension, it is no secret that these processes are expensive and risky, careless planning will only cause the market to mercilessly punish you. And despite investing enormously, 70% of new brands fail within the first three years.

1.What Should I Call You?

Consumers will transfer their pre-registered knowledge about an existing product/service of yours that may, in turn, affect the brand that you are about the launch. Therefore, it is important for one to recognise oneself. Is the brand an extension brand? Or is it an entirely new brand with no associations from its previous (if any) brands?

If it is an Extension Brand

An advantage of extension brands is that they are able to transfer favorable associations from the existing/parent brand. Extension brands should consider the perceived image fit and functional similarities. Does the new brand fit with the existing brand? An example is the Apple iPod, the extension brand from Apple, in which, the functionality and image is fit with the parent brand. Apple communicates itself as a well-designed, user-friendly and sophisticated consumer gadget. Therefore, the Apple iPod is fit with its parent brand. It can go about the other way around too by which harming the parent brand can occur. If Apple decided to launch an “Apple Backpack”, it would not turn out successful as it does not fit with their existing products.

‘New’ Brands

New brands are something completely new, without any attachments to their previous brand or parent brand. For example, Toyota, a car manufacturer with significant market share in entry to mid-level cars and their introduction of Lexus, a completely new brand to tap into the high-end car market. New brands should serve as independent, without any connection. New brands have its own freedom to choose favorable associations and to create new image in consumer’s perspective

2. What Are You & Who Are You?

The next step after deciding whether to launch a new extension or an entirely new brand is to establish your brand positioning. Here are three things you have to establish in order to have a clear brand positioning.

Frame of Reference

The basic notion of frame of reference is: Who are you competing with? Consumers make decisions based on the product category, brand, and alternatives. If you are about to buy comfortable and well-designed running shoes, several brands will come to mind, that is a frame of reference. Indirectly communicate to your consumers and directly establish an internal frame of reference to make it easier for both your consumers, to refer your brand to certain product category, and your team to make a clear Points of Parity and Points of Difference.

Points of Parity (PoP)

Points of parity simply refer to the features that are embedded and connected to your product, removing ‘the reason not to buy’. Using the example of running shoes again, consumers would like to have comfortable technology in their shoes. In terms of comfort, brands like Nike, Adidas, Reebok and Puma have their own comfort technology, it is their Points of Parity. Establish your PoP amongst your competitors and eliminate the reasons of why the market should not buy your product.

Points of Difference (PoD)

Points of difference are what make you stand out from the other competitors. PoD can be abstract (intangible) or concise (tangible). For example, Apple distinguishes itself from its competitors with its different operating system architecture and beliefs and values. In terms of beliefs and values, Apple continuously communicates itself as a brand that ‘challenges the status quo’, separating them from the rest. Ideally, moderate differentiation is considered much more favorable than radical differentiation in launch strategies as radical differentiation will confuse consumers of your PoPs and Frame of References.

To establish solid brand positioning, you can refer to our previous article here.

3. Where and How Do I Know You?

The last section is in the brink of the product launch, the brand awareness strategy, in which you have to acknowledge if the brand is a first-mover or follower. First-movers have its own advantages as no one in the market is actually offering the same option. However, first-movers are not always a good idea. Therefore, you need to create a lasting, strong and favorable impression in the eyes of consumers. For a followers brand, the differences should be leveraged to be set aside from existing competitors within the same frame of references. If successful, these two different strategies in the brand awareness stage will create a lasting effect on the consumer’s perception.


Recent posts.

email tiles | arcadia brands

7 Fool-proof email marketing tips. 

hustle macbook | arcadia brands

Remote working increases productivity by 30%, here’s how you can reap the benefits in your business. 

arcadia brands | designer chair

The 3 problems we face when adjusting to working remotely, and how to solve them. 

apple devices | arcadia brands

Top 10 Tips for Choosing a Web Designer for Your Business. 

Subscribe to receive insightful articles.

Sign up to receive interesting and engaging articles about branding, design & productivity.


Arcadia Brands believes in a team orientated approach, where a collection of the most passionate brand & creative experts come together to offer unique solutions to our clients.

Our process of delivering high-level brands involves 4 key phases of brand identity, brand personality, brand equity and brand loyalty. Each client’s unique requirements are met at the highest level as we have a complex understanding of brand delivery.

Founded in 2012, we have been serving creative brand design, web development, graphic design and digital marketing projects to various groups of clients, including publicly listed companies and SMEs worldwide. With a core team of 20 experts, we have presence in Kuala Lumpur (Malaysia), London (England), Toronto (Canada) and New York (USA).

Brand identity is how a business wants to be perceived by consumers, reflecting the value the company is trying to bring to the market and to appeal to its customers.

Brand personality is something to which the consumer can relate; an effective brand increases its brand equity by having a consistent set of traits that consumers enjoy.

Brand equity refers to a value premium that a company generates from a product with a recognisable name, when compared to a generic equivalent.

Brand loyalty is a pattern of consumer behaviour where consumers become committed to brands and make repeat purchases from the same brands over time.

arcadia.brands / all rights reserved / crafted by arcadia.design

newsletter subscription

Sign up to receive awesome emails about branding, design & digital marketing.

Used in accordance with our privacy policy.

arcadia brands

Ask us anything.

Send us your questions. We will reply as soon as possible, usually within 24 hours.

Used in accordance to our privacy policy.