When it’s Time to Create a Sub-Brand or Second Brand
Splitting your business into multiple
As your brand grows and evolves you’ll likely experience the occasional growing pain in your branding. You may begin to ask yourself questions like, “should I create a sub-brand?” “what about a second business?” “is this worth exploring the creation of a separate entity?”
If you’re wondering where to take your branding from here, the good news is that you don’t have to do it alone! We’re here to help! While we can act as a sounding board for your brand strategy, this post will also act as an easy reference guide to help you identify when a rebrand should warrant a new business vs tweaking, or refining your current branding.
What is the difference between a brand and a sub-brand/second business?
First, let’s define ‘brand’.
Forbes suggests, “Put simply, your “brand” is what your prospect thinks of when he or she hears your brand name. It’s everything the public thinks it knows about your name brand offering—both factual (e.g. It comes in a robin’s-egg-blue box), and emotional (e.g. It’s romantic). Your brand name exists objectively; people can see it. It’s fixed. But your brand exists only in someone’s mind.”
Your brand, is the perception people have of your business. It can be something you cultivate via content, colors, your website, the way you speak to customers, and the way you interact with prospects.
Think of a brand like Amazon. When it comes to the overarching themes associated with a brand, you can think of an entity like Amazon. Amazon is home to all the magic. So now, let’s talk about a sub-brand or a second business.
Then, we can define ‘sub-brand’ and ‘second business’.
A great definition of a sub-brand would be something to this effect.
Sub-branding is when a main brand creates a subsidiary or secondary brand. (For example, Diet Coke or Nacho Cheese Doritos). Sub-brands are typically created as an opportunity to reach a new audience. Sub-brands can then build and sustain relationships with the new audience. This new brand’s attributes are distinct, yet related to the main brand. Sub-brands often have their own brand standards, logo, color treatment, etc. while some sub-brands reflect the same identity as the parent brand. - Emily Marchak.
Now, think of Amazon Prime, or Amazon Video, or the Kindle. These are all sub-brands or second businesses to Amazon as a whole. They have similar but different branding, and they work to promote Amazon as a whole.
When it comes to deciding which of these are right for you, we’ll provide some reflection questions at the bottom and lots more information in the coming sections to help you make an educated decision on your next steps.
As we think about the goal of each of these categories, it is important to realize that all the fancy names for things are irrelevant. The heart of using a formal branding guide helps to create consistent, clear, and easily communicated messages for your audiences no matter who makes them.
When would you create a second business?
Now that we know the difference between a sub-brand or second business and a parent brand, we can dig into what makes building a second business worth it.
Creating a second brand (or sub-brand) can help you keep up with innovation trends while staying true to your roots. You can quickly adapt to new industry demands without leaving your current customers jarred by any drastic shifts in messaging, identifiable print materials like logos and colors, and overall brand image.
Why develop a separate entity
You’re probably asking yourself why it’s worth it to create a separate brand or entity for a new product or service line? Well, here’s a couple pros to consider when it comes to developing a second business:
You can maintain brand identity, while allowing yourself to be more flexible with your product or service offerings
Your new business can increase exposure for the parent brand, while also providing more credibility to the new brand
On the other hand, a second business could result in:
Poor reflection of the original brand if the new one isn’t successful
Creating confusion if you’re not intentional about the launch
So, with all that said, how do you know when it’s time to explore a rebrand?
When is it time for a re-brand?
Brands, like humans, grow and evolve with time and experiences. As your business is growing, it’s important to revisit your branding with the help of a professional designer to ensure you’re still sending the right messages, engaging the right audiences, and creating a lasting impact in the world.
If you’re thinking about expanding your services or adding a new product, here’s some great reflection questions to help you identify if you need a second business or a brand refresh.
Is this a natural fit for my business?
Is there a demand for this new venture?
Will it generate a profit for my business?
Are there enough resources to determine brand standards, if needed?
Are there enough resources to promote and maintain the new brand or product?
Whether you’re ready for a re-brand or a separate entity, you’ll need a professional designer to help you get your new brand strategy up and running and to ensure the brand is tailored to your target audience. Inquire here to get started!