Why Should Start-ups take help of an Established Brand to Sell their Products

Brand extension can exploit 'leverage' and 'logic' parameters to offer value to consumers

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The name Disney brings a flurry of thoughts to anyone around the globe. Cartoon logos, colouring books, baby clothing, TV shows, theme parks and many others have been admired by the world for decades and the Disney products and the brand are loved immensely. Undoubtedly, the words ‘entertainment’ and ‘fun’ have long been associated with the brand, Disney.


Stepping aside, one might wonder if Disney might find a place in education. Many viewed this with great apprehension and wondered if the combination would work. But yes, it did, and how! How could a brand that excels in the field of fun and entertainment establish a strong footprint in the education landscape?

How Disney Became a Hit in Chinese Education Market

Well, it can. The meat part is not about having a long history in the educational space but possessing a well-established brand name to market educational products, which of-course, which of course Disney has.

The MNC ventured into a successful brand extension, launching ‘Disney English-language training centres’ in China.

The initiative, as a whole, was well accepted by the Chinese as they were sure about the quality a brand like Disney would deliver. Disney utilized its long-achieved strengths like customer-experience and its unparalleled capabilities in entertaining children to set an incredibly lucrative niche in the Chinese educational market. Now, Disney English has its presence in more than nine cities with over 30 locations in China, a country where Disney’s films and legacy merchandising is yet to establish a broad market presence.

In this way, the brand extension did exploit ‘leverage’ and ‘logic’ parameters to offer value to the consumers as well as to the Disney brand in multiple ways.

What Start-ups can Learn from Disney

Enterprises, especially start-ups, can adopt this branding model to leverage their brand with the help of an existing brand. Consumers, who trust the main brand, will not doubt any products sold under that brand name. Start-ups can take the umbrella-shadow of an established brand to sell their products, which offer them the momentum to ‘hit the ground running’ without much spending on advertisements and promotional expenditure. These brands can also have a great entry point into the competitive markets without having to face the challenges of an infant and is an opportunity to reach new audiences and build asustainable relationship.

Sub-branding/ Brand Extension

However, sub-branding or brand extension is not usually a child’s play as the new products should fall in line with quality expectations of consumers and meet their new needs. If they do, the new feat can bring business benefits to both the sub-brand as well as the parent brand. A successful sub-brand can immensely help advertise and add exposure to the parent brand also strengthen brand loyalty and trust. Moreover, it increases the product line and the product mix to create an even larger brand image also bagging in more marketshare and profits.

Precautions Before Brand Extension  

Businesses need to be very careful before venturing into a brand extension as failing to doso in the right manner can adversely affect the business throughputs and consumer trust. Launching a sub-brand should align naturally with the parent brand without fail and is also a key factor in ensuring business success. Thoroughly analyzing the demand for an extension and predicting the profits that it can generate can be a game changer in the overall results.

A new-born company, under a parent brand, should be able to provide consumers with a sense of familiarity by incorporating all the positive brand characteristics into the newproduct category. These factors can sure categorize a brand extension as successful.The future seems to be bright and shining for sub-brands and extensions as there are plentyof established brands willing to give out a helping hand. They just need to cut through thenoise by demonstrating their unique values, creative products, and innovative strategies toincrease business reach.

Roopa Venkat

Written By

She has a dynamic leadership career in the relocation and transport industry with a rich mix of finance, operations, internal external processes and growing interest in new-age technology. She has intimate knowledge of financial processes, operating results and profitability to make the tangible connection between business and its financial performance for effective decision making.

Her experience in conceptualising and implementing financial policies and procedures, including working-capital management, internal financial controls, project financing, and costing are her forte.