Sorbet is a well-established brand in various beauty markets. They are known for quality products and exceptional customer service
You can find their busy salon’s in most retail malls across the country and buy their products in big retail chains like Pick ‘n Pay, Clicks, and Dischem. From body wash to BB cream, their vibrant and fun coloured packaging sets the Sorbet products apart from competitors.
Image Source: Sorbet Group
Because Sorbet is an already well-established brand I won’t stray too far when I look at a potential growth strategy, I will be launching this strategy under the mother brand, Sorbet to further capitalise on its success and expand its market presence.
If we analyse the market expansion grid, I propose leveraging the product development as a market strategy, and it will include new products, new stores, and services.
According to Klopper & North 2011:219, a new brand strategy involves the development and launching of a new brand, often in a product class not served by the organisation, and that is exactly what we will focus on and by doing so ultimately create a brand extension.
Proposition and Examples
I propose we look at a new set of chain stores designed with an inviting and calming atmosphere that includes the mother brand (Sorbet). The store will be centered around skincare that offers premium skin-treatments and consultations, it will also sell new products in-store that will help with targeted skin conditions like acne, anti-aging or eczema.
We use skin-fluencers of all ages and races to ensure inclusivity and diversity and show consumers what the treatments and products can do. We can also Co-brand with dermatologists and run campaigns that include skin-fluencers to sell to their following like: Win a free derma skin assessment to entice their following.
Image sources: Cosmopolitan and EST. SINCE 94
Because the brand is already well established in the salon and beauty industry, this will be a great addition to the brand. These new stores and products will rely heavily on the mother brand name to leverage the same perception from the consumer. Keller and Aaker 1998:356) calls this corporate brand extension. Klopper and North (2011:231) also mentions that a brand extension strategy is based on the premise that consumers place a value on a brand name, and this can be used by organisations.
Considerations of the growth strategy
- Market analysis: I will have to do extensive market research into the skincare industry and it’s consumers. This particular market is experiencing significant growth and more consumers are becoming aware of the benefits of looking after your skin. Getting into this market with innovative products that is tested by Dermatologists will strengthen the Sorbet Derma Skincare brand against the competition and position itself in front of new consumers.
- Product Development: Understanding your audience forms part of product development. Sorbet Derma Skincare will have to conduct audience research in order to identify the demographic and skin ailments that will need to be treated and the type of products that is needed.
- Brand Reputation: The Sorbet Brand is currently known for its commitment to quality and customer service. Introducing new Derma products and stores will enhance its reputation and credibility and attract new consumers.
Risks and benefits of this growth strategy
Benefits:
- Enchanced brand image: As mentioned above the new Derma stores and products can have a positive outcome which may lead to increased sales and boosts in revenue.
- Increased Revenue: Expanding into a premium market with treatments and products opens new lines of income that was not there previously.
- Competitive Advantage: Because Sorbet is an established brand it has an competitive advantage. Consumers already know and trust the brand, more consumers will buy-in because of this.
Risks:
- Market Saturation: The downside to everyone focusing on skincare is the market is heavily saturated and highly competitive.
- Brand Dilution: Introducing too many new products and stores might confuse customers and affect Sorbet’s brand identity.
- Economic risks: External factors like customers spending behaviors or economic turns may impact the brand negatively especially since it so heavily relies on the mother brand.
Future Benefits:
- Brand Expansion: Expanding the Dema skin stores to various locations will showcase Sorbets commitment to innovation and client service by making premium skincare treatments more accessible.
- Market Leader: Sorbet can become a market leader in not just the beauty industry but the skincare industry too.
Conclusion.
Sorbet is already a FABULOUS brand, and this growth strategy will just enhance the already great brand. The established brand will give it the potential to grow and elevate the current brand to new heights.