How Do Brands Expand? What Marketing Techniques Do They Employ?

• By Josh Walker
• 03-02-2023
• Digital Marketing

Brands, regardless of their size, tend to expand for manifold reasons.
Expanding a brand can help increase revenue and market share and reach new customer segments.
It allows companies to hit potential customers and target them with the right approach.
Brands learn about new cultures and cater to customers living in different regions across the globe.
They get to know things they didn’t know before operating in a certain market.
They make progress by adopting new strategies.

Why Do Brands Expand

Expanding a brand can bring several benefits to a business.

Before we discuss anything further, let’s quickly check out some of the prominent benefits of brand expansion.

1. One of the main benefits is the potential for increased revenue. By expanding into new markets or launching new products, a company can tap into new customer segments and potentially increase its overall sales. They can increase the overall revenue after meeting all the expenses.
2. Another benefit of expanding a brand is that it can help a company gain a larger market share. A company can take market share away from competitors by entering new markets or launching new products. This can lead to increased profitability and more stability for the business in the long term. There are many such examples available even in today’s world.
3. Expanding a brand can also increase brand awareness. When a company expands into new markets or launches new products, it can reach new audiences and increase the visibility of its brand. This can lead to increased customer loyalty and a stronger reputation for the company. Several brands there were not known a decade ago, and now they have become cosmopolitan.
4. Expanding into new markets or launching new products can also provide relief against market fluxes. When a company depends on only one market or product line, it is vulnerable to changes in that market. But by expanding a brand, a company can diversify its revenue streams and reduce its overall risk. This goes hand in hand with the famous proverb, “a wise man never puts all of his eggs in the same basket.”

Finally, expanding a brand can lead to developing new skills and capabilities within the company.

For example, a company that expands into a new market may need to learn new cultural norms and local regulations, which can help it become more adaptable.

Additionally, launching new products can help a company develop skills and capabilities in product development, marketing, and other prominent fields.

How Do Brands Expand?

Now that you have understood why brands make so many efforts to expand, let’s check out how they expand.

Expanding a brand typically involves several steps, including:

• Conducting market research

Before expanding a brand, it is important to conduct thorough market research to identify potential new markets or customer segments.

This research can help a company understand a market's size and growth potential and identify key trends and consumer preferences.

No wise company steps into a new market without conducting proper research.

They analyze everything, including the potential success factors and threats.

• Developing a plan

Once a company has identified potential new markets or customer segments, it can develop a plan to expand into those areas.

This plan should include details on how the company will enter the market, what products or services it will offer, and how it will market and distribute them.

Having a sound plan to help the company succeed in the new market.

They focus on making an actionable plan that they can execute without flaws.

• Launching a new brand or product

After the plan is in place, the company can launch the new brand or product.

This may involve creating new branding and marketing materials, setting up distribution channels, and training employees on the new offerings.

Launch of the new product or brand is done in an organized way.

Usually, brands run promotional campaigns before they actually launch.

They create great hype around the product to make people wait for them to launch.

• Building and maintaining contacts

As the company expands, it must build and maintain relationships with new customers, partners, and suppliers.

This can involve building a sales team, creating partnerships, and establishing a customer service infrastructure.

This is one of the most critical aspects of brand expansion.

No brand can succeed in the long run without maintaining a good customer relationship.

• Monitoring and adapting

Once a new brand or product is launched, it is important to monitor its performance and make necessary adjustments.

This can involve tracking sales and customer feedback and making changes to the product or marketing strategy as needed.

It is very important to analyze and understand customer feedback to adjust accordingly.

If a brand continues to work without adapting to customer requirements, it will likely fade with time.

• Continuously expanding

After expanding successfully, the company can uninterruptedly expand into new markets, regions, or products to further grow the business.

They learn how to survive in different regions across the globe.

That’s why they follow the pattern of continuous expansion to gain maximum exposure.

It is important to note that expanding a brand requires significant resources, including funding and time.

Those with a very limited budget may not become prominent brands.

Additionally, it can be difficult to predict how a new market or product will perform, and there is always a risk of failure.

For this reason, companies should conduct thorough research and planning before expanding a brand and be prepared for potential challenges along the way.

Having said that, the risk factor is always there. Therefore, companies keep themselves ready for the potential outcomes.

What Marketing Techniques Do They Employ?

Advertising is a traditional marketing technique that can increase brand awareness and promote new products or services.

Companies can use various forms of advertising, such as television and print ads, radio ads, billboards, flyers, brochures, and more.

Although all of these seem to be the traditional modes of marketing, they are effective even in today’s modern era.

With the rise of the internet, digital advertising has become increasingly popular.

This includes social media, search engines, display, and video ads. Advertising can greatly reach a large audience and generate buzz for a new brand or product.

Let’s check out what common techniques brands use to magnify.

• Public image

Public relations or public image is an advertising technique that focuses on building relationships with the media and other influencers to generate positive media coverage and brand image.

This can include creating and distributing press releases, hosting media events, and working with influencers to promote the brand.

PR can be a great way to build credibility and trust with potential customers.

People begin to trust a brand when it tries to build a nice image in public.

• Product Sampling

Product sampling is a marketing technique that allows potential customers to try a product before they buy.

This can be done through in-store promotions, such as product demonstrations, and online promotions, such as free trial offers.

Product sampling can be an effective way to generate interest and build trust in a new product.

Product sampling is a successful strategy to let people experience the real product.

Once they find it attractive or satisfying, they continue to use it whenever a need arises.

• Trade shows

Trade shows are events where companies from a specific industry or market come together to showcase their products or services.

Trade shows can be a great way for a company to connect with potential partners, suppliers, and customers.

Companies can set up a booth, host networking events, and give product presentations to showcase their new brand or product.

In many countries and markets, trade shows are considered a successful way of promoting a brand’s products or services.

• Referral marketing

Referral marketing is a marketing technique that relies on word-of-mouth recommendations.

This can include incentives or rewards for customers who refer friends and family to the brand.

Referral marketing can be a cost-effective way to generate leads and sales for a new brand or product.

This mode of marketing is mostly utilized by brands that struggle to promote their specific products in a new market.

• Content marketing

Content marketing is a marketing technique that focuses on creating and distributing valuable and informative content to educate and engage potential customers.

Content marketing can be a great way to build trust and credibility with potential customers.

This can include blog posts, videos, social media posts, and other content that provide value to the target audience.

Companies find talented content creators to generate attractive content for marketing purposes.

• Influencer marketing

Influencer marketing is a marketing technique that leverages the reach and credibility of popular social media personalities and bloggers to promote a brand.

Companies can work with influencers to create sponsored content, host events, or even collaborate on new products.

Influencer marketing can be a great way to reach a targeted audience and generate buzz for a new brand or product.

People love following their favourite personalities on social media and stick to what these famous celebs recommend through their videos or posts.

• Direct marketing

Direct marketing is a marketing technique that reaches specific customer segments through targeted mailings, telemarketing, and email campaigns.

Direct marketing allows companies to target specific groups of people, such as customers who have previously purchased a product or service.

This can be a cost-effective way to generate leads and sales for a new brand or product.

However, it is important for a company to run sensible direct marketing campaigns to bring the desired results.

Dior Digital Marketing Strategy

Dior, a luxury fashion and cosmetics brand, employ various digital marketing strategies to promote their products and engage with customers.

Some examples of Dior advertising strategy include:

• There Social Media Strategy

Dior has a strong presence on social media platforms such as Instagram, Facebook, and Twitter, where they post updates on their latest collections, products, and events.

They also use Instagram and TikTok to showcase their products, create fashion and beauty tutorials, and collaborate with influencers.

That’s how they attract most of their potential customers worldwide.

• Influencer Marketing

Dior partners with many influencers, including models, actresses, and fashion bloggers, to promote their products and brand.

They often use influencer marketing campaigns to create buzz around new product releases and also use it for their fashion shows.

Dior and many other successful fashion brands worldwide use the same strategy to get traction.

• E-commerce

Dior has an e-commerce website where customers can purchase their products online.

The website features many products, including clothing, shoes, accessories, and beauty products.

Having an online store helps their customers purchase desired items without stepping out of their homes.

• Mobile App

Dior has a mobile app that allows customers to shop for products, check stock availability, and book personal shopping appointments at Dior stores.

The app also includes features such as a virtual try-on feature for makeup and augmented reality features for its products.

Dior knows that a large number of their customers prefer buying stuff through their mobile devices.

That’s the reason they have made a dedicated mobile application to facilitate the purchase process.

• Email Marketing

Dior uses email marketing to inform customers about new products, upcoming sales, and exclusive events.

They use personalization and segmentation techniques to tailor their email campaigns to different customer groups.

Email marketing helps them target their customers with the latest offers and promotions.

This mode of advertising conveys a direct message and avoids confusion.

• Video Marketing

Dior marketing techniques include video marketing to showcase its products, create behind-the-scenes content, and give customers a glimpse into its brand.

They often use video marketing to promote their fashion shows, campaigns, and collaborations.

Videos always help them advertise their products uniquely and attractively.

This type of marketing is helpful in showcasing products from different angles.

Eventually, enticing customers to place an order for the product that they just watched online.

• SEO and SEM

Dior uses SEO and SEM to improve their visibility on search engines and drive traffic to their website.

They use keywords, meta tags, and other optimization techniques to improve their search engine rankings.

SEM and SEO have been pretty successful for Dior since the company now appears in top search results when customers enter a query related to their products.

• Virtual Reality

Dior uses virtual reality technology to create immersive experiences for customers.

They use virtual reality to give customers a virtual tour of their stores, showcase their products, and create interactive campaigns.

• Dior Brand Strategy

These are just a few examples of Dior's digital marketing strategies to promote its brand and products.

They continuously innovate and adapt to new technologies and trends to stay relevant and connect with their target audience.

They are always open to trying new marketing techniques to help their brand expand and reach new customers.

Probably that’s the reason they have been pretty successful in capturing a great market share in different countries.