Separate promotion: rule, which saves business

In many cases, it is better not to link name of firm with brand name. This is important for companies, which work in various directions.

Let’s assume, you opened consulting firm and registered as Consult and Co. LLC. You decided to name the brand with the same name. You ordered logo, developed website and entered to the market. After some time, you decided to open another direction, which is not connected with previous one: advertisement services, trade, construction, automobile rent, etc. Suddenly, new project faces problems and receives negative feedbacks and unsatisfied clients. The company faces difficult situation due to promotion primary business and new project promoted in the market under the same brand.

One should not promote two various projects under one brand for two reasons: it is problematic and risky. Misfortune of one of project will impact the second project. Problems of new project will impact old business. Besides, it will confuse impression of targeted auditory and clients of both directions. It creates confusion among auditory. In the result, the business owners are in deadlock as two projects should be developed separately. This problem can be avoided if use separate promotion rule from the start.

How two projects of one firm can be promoted in the market?

Existence of one or several directions can be good support to main business. In order to avoid problems with promotion, it is recommended to divide them to several independent divisions. Each division will have own brand, logotype, as well as website. It is desirable to have separate team, phone numbers and project coordinates. Naturally, both directions can fill up each other.

So, what problems you can avoid if you use separate promotion:

1. Risk to damage one direction through other direction will be minimized;
2. Coordinate management of two separate teams with set hierarchy and working processes is more convenient rather than manage one large group, employees of which have separate products, targeted audience and markets.
3. Two brands – twice more clients. With two separately positioned brands, you will receive twice more loyal consumers, who will allow you to earn money to your company;
4. Risk to receive refusal from clients, who will be confused from various proposals from one brand, is minimum;
5. Both brands will have opportunity to participate in partnership programmes, events, promo-campaigns and advertisement campaigns;
6. Chance to keep one of direction in market competition, save clients and ensure stable income for company in crisis period is much higher;
7. It is possible to exchange employees between projects and exchange experience.

If the business have similar directions or fill up each other (for example, the company sells computers and notebooks, plus spare parts and accessories to them) and have general or similar target auditory, it is expensive and inefficient to promote them under separate brands. In such case, it is better to promote business under one brand.

In other cases, it is better to promote separately, which is pledge for security of your business in competitive environment in any market.

Artem Safarov is author of the section “People and Brands”. He is specialist in marketing and PR. He studied crisis management at World Technological University. He worked as manager and director of marketing and PR. He launched his first product in the market at his 20s.