If your business needs a little jump start, have you considered introducing a sub-brand or diffusion line into your business portfolio?
A sub-brand can create diversity in your offering and can even be used to create different brand price points.
Consumer demand changes every day and businesses need to adapt to these changes in order to keep up with the market. A number of big brands have adopted the sub-branding strategy by either developing new sub-brands and diffusion lines or purchasing an existing niche brand or product.
McDonald’s recently opened a small cafe in Sydney’s CBD called “The Corner” in response to consumer’s changing tastes. By opening their cafe through a sub-brand, they are able to escape their existing brand connotations of “fast” and perhaps unhealthy food and experiment with a different strategy appealing to a different range of customers.
In the fashion and retail industry, it is well known that creating a diffusion line can allow a luxury or a higher end brand appeal to a wider audience. For example, Missoni is a luxurious and identifiable clothing and homewares brand with distinctive patterns. To appeal to a wider audience, generate some income and perhaps create some additional brand awareness for the lux brand, they created the “MISSONI for Target” range, something that has been done by many other designers including Stella McCartney.
In contemplating a sub-brand or diffusion line there are many factors to consider:
- What are you trying to achieve?
- Will you require additional trade mark protection?
- Will you breach any existing intellectual property?
Gladwin Legal has worked with businesses in protecting their intellectual property and developing a branding strategy. Contact us today (, 1300 033 934) for a no obligation quote.