Overcoming Common Brand Problems – 13

One-by-one we are exploring the 40 Most Common Brand Problems. Here's un-lucky number 13...

We are taking a look at the 40 Most Common Brand Problems, based on our experiences and yours. Here’s un-lucky number 13…

Common Brand Problem Number 13: Launching sub-brands that inadvertently reposition the parent brand in a negative light

Analysis: What does Miller Lite say about Miller High Life? What do Bayer aspirin-free products say about Bayer aspirin? What do Fat-Free Fig Newtons say about Fig Newtons? Make sure you know what you are doing when you create a new sub-brand, and be sure to test its impact on the parent brand.

Key Point: In the Atkins era, it’s possible that Miller Lite says we care about you if you’re counting carbs. But when Miller came out with Miller Lite, it cast regular Miller beer in a poor light and sales of their core brand declined.  Another interesting thing: adding Lite to the brand name allowed all competitors to do the same, creating perceived parity versus differentiation.  The American Express card was on a very high pedestal until it created its Gold card.  Its point of difference was that it was American Express not that it had a Gold Card.  It was the ‘gold card.”  As soon as it created a Gold Card, that opened up the opportunity for its competitors to do the same, reducing brand differentiation and eroding brand share.

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