This post is about brand diversification and why you should avoid it. But before we can talk about diversification, let’s see what the brand is and why is it so important. The difficulty of standing out in the competitive marketing is palpable to everyone. Without branding, the chance of your survival is really near impossible all thanks to the cut-throat competition. A consistent branding will not only increase the value of your name but will also generate new business and give you a strong online presence. So, this makes weak branding (e.g. unappealing website design) equal missed opportunities.
Now that we have cleared how important branding is, let’s talk about diversification. The first obvious thing is that if you are creating different products that not related at all then you will mostly need different brands. But for many companies, having a separate brand is not advisable as a lot of money, time and resources are put into building a brand, and a new brand creation will force them to start everything from scratch which is usually not a viable thing to do. And also, brand diversification usually ends up doing more harm than good. Brand diversification, normally done with an aim to capture the audience from a different market, generally ends up confusing the established customer base, and businesses wind up losing credibility, authority or distinction in the minds of their customers. A business puts so much into building a site and brand, why not bring everything under one umbrella?
The main problem is that most people create many businesses rather than focusing on their core business. You really don’t need to start a new business until your core business dies or becomes static. But if you still insist on creating a different website for a new brand, there are a few things you should consider before moving one:
Do you have time?
Are your target audiences the same for both services?
Will the two brands provide SEO benefits?
If the answers to the above questions are positive then go ahead, if not, it will be better for you to stick with one brand.