XYZ is a silver jewellery brand. product base metal is silver , now management of the company wants to introduce some fashion jewellery of copper and low priced alloy and metals . what will its impact on brand positioning in future ?
My Answer to that Jeweller. (Actually its a real life case study . I got this question from a Jeweller based at South India )
You’re right, using the same brand name for XYZ silver and fashion jewelry lines could create problems down the road. Here’s why:
Potential Issues :
Brand Dilution : XYZ has established itself as a silver brand. Introducing cheaper fashion jewelry under the same name can dilute the brand image. Consumers might associate XYZ with lower quality or lose trust in the value proposition of silver pieces.
Confused Perception : Customers looking for high-quality silver might be disappointed to find costume jewelry under the same brand. This can lead to negative reviews and lost sales.
Price Discrepancy : Silver and fashion jewelry have significant price differences. This can create confusion for customers who might expect similar pricing across the brand.
Impact on Brand Positioning :
Loss of Premium Image : XYZ’s association with silver positions it as a premium brand. Adding fashion jewelry can pull the brand image downmarket.
Difficulty in Targeting Different Segments : Marketing to both silver and fashion jewelry customers with one brand message becomes difficult.
Alternatives to Consider :
Create a Sub-Brand : Develop a separate brand for the fashion jewelry line. This allows you to target a different audience and price point without affecting Classiya’s image.
Use Clear Differentiation : If you must use the XYZ name, ensure clear differentiation within the brand. This could involve separate product lines with distinct logos, packaging, and marketing strategies.
Here’s how a marketing person can approach this situation :
Market Research : Conduct research to understand customer perception of XYZ’s brand and their interest in fashion jewelry.
Develop a Strategy : Based on the research, decide whether to create a sub-brand or use clear differentiation within the XYZ brand.
Communication is Key : Clearly communicate the new product line and its distinction from Classiya’s core silver offerings.
