Voicemail question: Is launching a new brand from the same company more preferable than franchising?

We have a voiced in quesiton from an anonymous listener “Is launching a new brand from the same company more preferable than franchising?”

These are two distinct topics and I am not quite sure how they relate to each other. Unfortunately, it was an anonymouse sender. The listener who sent the ‘voice’ question did not leave a name or email address.

Let’s see. Let me tackle this as two questions. The first one “Launching a new brand from the same company”. If the new brand is not targetting a different customer then there should be no problem with that. Assuming that the new brand is still on-brand with the overall branding of the company.

However, if the new brand being launched is targetting a totally different set of customers then it’s best to launch the new brand as a totally different company. As an example. When the Toyota Motors directors decided to go after the luxury class of automotives they know that they cannot launch the new brand of cars under the “Toyota’ brand.

The ‘Toyota’ brand stood for quality and affordability. The target market is the middle class and lower middle class. Coming out with a luxury brand of cars would confuse buyers. The target market is upper-class of buyers. These target customers are likely to buy ‘Toyota’ cars for their personal use. They are after prestige and luxury.

So not to confuse their existing ‘Toyota’ market and their target luxury market, the car manufacturer decided to come up a separate branding and company for it. They came out with the Lexus brand of cars. Lexus was created to go after the market of Mercendez Benz and BMW. They offered the same luxury level of automobiles with the reliability, high quality and more affortable pricing that Japanese manufacturers are known for. One conglomerate, two brands of cars.

With regards to the second topic, franchising. I don’t have enough context to properly reply. Hopefully, the listener that sent the question will be able to read this and send a follow-up question. Please provide a little bit more context so I can properly reply.

In the meantime, have. good day everyone and be safe.

If you have a question in mind, please send your question via the link below.


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