Broadening the Market Won’t Make Your Brand More Valuable

Logic suggests that if you broaden your market and expand the potential number of customers that the brand may appeal to, the amount purchased will increase and the value of the brand will go up. Unfortunately, logic and marketing often do not line up. In fact, if you look at several examples (beer, Sears, Burger King, etc.) you will find very clear examples of how broadening markets caused dilution of the brand within that market.

Burger King continues to offer more and more menu items in an attempt to bring in more customers – Is that what Burger King customers want? If it is, then why are same store sales (sales for only stores that have been open at least one year) falling year after year? In comparison, consider Five Guys, the fastest growing fast-food chain in America. Five Guys server burgers, hotdogs, french-fries, and grilled cheese sandwiches – that is it. In just a few short years same store sales of Five Guys are virtually identical those of Burger King.

We preach this very principle to every one of our clients. Consider the dilution of focus that has to occur in order to reach a broader audience; can the brand still maintain its appeal, its position, or do you lose more than the potential gain? Sometimes logic is not as logical as you think.