Expanding to a new market? Your brand strategy needs to change. Learn what shifts and how to adapt positioning for different customer segments.
A company has found product-market fit in their core market. They've built a strong brand. Customers love them. Revenue is growing.
Now they want to expand. They identify a new market. A new customer segment. A new geography. A new use case.
They think: We'll just bring the existing brand to this new market. Same positioning. Same messaging. Same brand.
Then they enter the new market. Something doesn't work. The positioning doesn't land. The messaging doesn't resonate. The brand doesn't mean the same thing.
Why? Because brand strategy isn't one-size-fits-all. When you enter a new market, your brand strategy needs to change.
Understanding how to adapt your brand strategy for a new market helps you expand successfully.
Your current brand strategy is built on your core market.
You understand your core customers deeply. You know their problems. You know their language. You know their values. Your positioning, messaging, and brand are all optimized for them.
When you enter a new market, everything changes.
The new customers have different problems. They use different language. They have different values. They have different buying processes.
Your current brand strategy might not work for them.
Real example: Slack positioned itself around "where work happens." This positioning works for tech companies. Tech companies understand the concept. They appreciate the simplicity.
But when Slack entered the healthcare market, "where work happens" doesn't resonate as much. Healthcare organizations care about compliance, security, and reliability. They don't necessarily care about being hip or modern.
Slack had to adjust their positioning for healthcare. They emphasized security, compliance, and reliability. The brand messaging changed for this new market.
Real example: HubSpot built their brand around "helping growing companies." This positioning works for venture-backed SaaS startups. These companies understand growth. They value speed and efficiency.
But when HubSpot entered the enterprise market, the positioning needed to change. Enterprises care about security, integration, and proven results. HubSpot adjusted their messaging to emphasize these things for enterprise customers.
Several things change when you enter a new market.
First, customer problems might be different.
Your core market has one set of problems. A new market might have different problems.
Real example: Salesforce was built for enterprise sales teams. The core problem was managing complex sales pipelines.
When Salesforce entered the SMB market, the problem was different. SMBs don't have complex sales pipelines. They have smaller teams. They need simpler tools. The problem shifted. The positioning needed to shift with it.
Second, customer language changes.
Your core market uses certain language. Terminology. Concepts. A new market might use different language.
Real example: A productivity tool talks about "deep work" with knowledge workers. This resonates. Knowledge workers understand the concept.
But when entering the manufacturing market, "deep work" doesn't resonate. Manufacturers think about "production efficiency" and "quality control." Different language. Different concepts.
The brand needs to speak in the new market's language.
Third, customer buying process changes.
Your core market has a certain buying process. Long sales cycles or short. Individual buyers or committee buyers. A new market might have a very different process.
Real example: A B2B tool sells to startups through a founder with a credit card. Quick decision. Fast sales cycle.
But when entering the enterprise market, the buying process is completely different. Multiple stakeholders. Long approval cycles. RFP processes. Committee decisions.
The brand messaging needs to address these different buying processes.
Fourth, competitive landscape changes.
Your core market has certain competitors. You know them. You know how to differentiate from them.
A new market might have completely different competitors. Maybe bigger. Maybe smaller. Maybe different types.
Your differentiation might not work against these new competitors. Your positioning might need to change.
Real example: Figma was the dominant design tool for startups. They owned the "collaborative design" positioning.
When Figma entered the enterprise market, they faced different competitors. Enterprise design teams were using Adobe Creative Cloud. Different tools. Different competitive dynamics.
Figma had to emphasize different things. Security. Integration with existing tools. Compliance. These things matter to enterprises but not to startups.
Fifth, market maturity is different.
Your core market might be a new market where things are still being defined. A new market might be a mature market where things are established.
Real example: A tool enters the cloud computing market early. The market is new. Concepts are being defined. The tool can own categories.
But entering a mature market like word processing, everything is established. Microsoft Word is entrenched. The market is defined. Positioning needs to work within an established market.
Sixth, customer sophistication is different.
Your core market might be early adopters. Technically sophisticated. Open to new ideas.
A new market might be pragmatic buyers. Risk-averse. Established in their ways.
The brand messaging needs to be different for these audiences.
Real example: Segment (formerly Segment.io) positioned itself around "the customer data platform." This positioning works for tech-forward marketing teams.
But when entering the enterprise market, they faced traditional marketing teams that didn't understand "customer data platform." Segment had to explain the concept more. Help people understand why they needed it.
If you're entering a new market, how do you adapt your brand strategy?
Step one: Deep dive into the new market.
Really understand the new market. Their problems. Their language. Their values. Their buying process. Their competitive landscape.
This should be as thorough as your original positioning research.
Real example: Before entering the healthcare market, a software company does extensive research. They interview 20 healthcare organizations. They understand their problems. Their buying process. Their compliance requirements. Their competitive landscape.
Step two: Analyze your positioning in the new market.
How does your current positioning land in the new market? Does it resonate? Or does it feel irrelevant?
Real example: A company's positioning is "the modern tool for distributed teams." In the startup market, this resonates. Startups value speed and flexibility.
But in the finance industry, "modern" doesn't matter as much. Security and compliance matter more. The positioning doesn't land as well.
Step three: Identify what's still relevant.
Some aspects of your brand strategy might work in both markets. Some might not.
Figure out what's transferable. What still works in the new market?
Real example: Slack's core value of "better communication" works in both tech and healthcare. Both need better communication.
But the emphasis is different. In tech, it's about speed. In healthcare, it's about compliance and security.
Step four: Identify what needs to change.
What about your positioning, messaging, and brand won't work in the new market?
Real example: A productivity tool's positioning is around "less interruption." This works for knowledge workers who value deep work.
But when entering the customer service industry, "less interruption" doesn't resonate. Customer service teams are always interrupting each other. That's their job. The positioning needs to change.
Step five: Develop new positioning for the new market.
Create a positioning statement specifically for the new market. Not generic. Specific to their problems, language, and values.
Real example: A tool has one positioning for tech companies. "Ship features faster with better collaboration." And a different positioning for healthcare. "Secure communication that meets compliance requirements."
Different positioning for different markets.
Step six: Adapt messaging and brand for the new market.
Messaging should reflect the new positioning. Brand personality might shift. Examples might change. Case studies should feature customers from the new market.
Real example: A tool has tech-focused messaging with examples from fast-growing startups. For healthcare, the messaging emphasizes compliance. Examples feature healthcare organizations. Case studies show HIPAA compliance.
Step seven: Test in the new market.
Before full launch, test your adapted brand strategy. Talk to customers in the new market. Does the positioning resonate? Does the messaging land?
Real example: A company talks to 10 healthcare organizations about their new positioning. Does it resonate? Do they care about what you're emphasizing? Adjust based on feedback.
As you expand to new markets, a key question: Do you use one brand for everything? Or do you create sub-brands for different markets?
Option one: One brand, different messaging
Use the same brand name and visual identity for all markets. But adjust messaging and positioning for each market.
Advantages: Leverage parent brand awareness. Unified brand image. Less confusing.
Disadvantages: Messaging might feel generic. Might not land deeply in any one market. Might confuse audiences.
Real example: HubSpot uses one brand. But messaging for small businesses is different from messaging for enterprises. Same brand, different positioning and messaging.
Option two: Sub-brands for different markets
Keep the parent brand but create sub-brands for different markets.
Advantages: Can tailor positioning and messaging more deeply. Avoid confusing audiences. Can own different spaces.
Disadvantages: More complex. More resources needed. Parent brand doesn't leverage across markets.
Real example: Amazon uses sub-brands. Amazon.com for retail. Amazon Web Services (AWS) for cloud. Amazon Prime for membership. Same parent company. Different sub-brands for different markets.
Option three: Completely separate brands
Create completely separate brands for different markets. No visible connection to parent.
Advantages: Complete freedom in each market. Can own distinct spaces. Avoid confusion.
Disadvantages: Massive resources needed. No leverage from parent brand. Difficult to manage multiple brands.
Real example: Procter & Gamble owns Tide and Olay and Pampers. Completely separate brands for different markets. Most customers don't know P&G owns them.
Most companies use option one or two. Option three requires massive resources.
Companies make mistakes when expanding to new markets.
First mistake: Assuming the new market is like the core market.
The company thinks: Our brand works in our core market. It'll work in the new market too.
But the new market is different. Problems are different. Language is different. Values are different.
Better: Do real research. Understand the new market. Don't assume it's the same.
Second mistake: Not adjusting positioning.
The company brings the exact same positioning to the new market. Same messaging. Same examples.
But the positioning doesn't land because it's built for a different market.
Better: Adjust positioning for the new market. Make it relevant to their problems and values.
Third mistake: Using the wrong language.
The company uses tech language in a non-tech market. Uses startup language in an enterprise market.
The new market doesn't understand or relate to this language.
Better: Research how the new market talks about problems. Use their language. Their concepts.
Fourth mistake: Missing the competitive landscape.
The company thinks they'll have the same competitive advantage in the new market. But the competition is different.
Real example: A tool dominates in the startup market against similar tools. But entering the enterprise market, they face entrenched incumbents. The competitive dynamics are completely different.
Better: Understand the competitive landscape in the new market. Adjust positioning to address that competition.
Fifth mistake: Moving too fast.
The company launches in the new market with minimal research. Assumes things will work. They don't.
Better: Take time to understand the new market. Do the research. Test positioning. Then launch.
Sixth mistake: Not communicating the shift.
The company changes their positioning for the new market. But existing customers in the core market don't understand the change.
It confuses existing customers. They think the brand is changing for them too.
Better: Communicate clearly to existing customers. Help them understand why you're expanding. Make clear that the core offering for them isn't changing.
How have real companies handled market expansion?
Example one: Slack expanding to enterprise
Slack was built for startups and tech companies. The brand was "hip," "modern," "playful."
When Slack entered the enterprise market, they had to shift. Enterprises care about security, compliance, ROI.
Slack adapted their messaging to emphasize security and compliance. They brought in enterprise case studies. They adjusted positioning to address enterprise concerns.
The core "where work happens" positioning still worked. But the emphasis and messaging shifted for enterprises.
Example two: Figma expanding to enterprise
Figma was built for startups and design agencies. The brand was about "collaborative design," "modern," "cutting-edge."
When Figma entered the enterprise market, they faced entrenched Adobe Creative Cloud. Enterprises care about integration, workflow compatibility, security.
Figma adjusted messaging to emphasize these things. Integration with existing tools. Compatibility with Adobe workflows. Enterprise-grade security.
The positioning shifted to address enterprise concerns while maintaining the "collaborative design" core.
Example three: Stripe expanding internationally
Stripe was built for US tech companies. The messaging was very US-centric.
When Stripe expanded internationally, they adapted messaging for each market. Adapted to local regulations. Local languages. Local payment methods.
Positioning about "accepting payments online" was universal. But how that was communicated shifted by market.
How do you know if your brand strategy needs to shift for a new market?
First sign: Your core positioning doesn't land.
You're talking to customers in the new market. You use your standard pitch. They look confused. The positioning doesn't resonate.
This is a sign you need to shift.
Real example: A tool positions around "designed for remote teams." But when talking to healthcare organizations, they say "that's nice, but we need compliance." The positioning doesn't land.
Second sign: Your competitors in the new market are positioning very differently.
Your competitors in the new market emphasize different things. They focus on different problems. They use different language.
This suggests the new market values different things. Your positioning might not address those values.
Third sign: Customer research reveals different problems.
You do customer research in the new market. The problems they mention are different from your core market.
This suggests your positioning around your core market's problems won't land as well.
Fourth sign: Your sales process changes.
In the new market, your sales process is completely different. Sales cycles are longer. Different stakeholders involved. Different buying triggers.
This suggests you need to shift messaging to address the different buying process.
Adapting brand strategy for a new market requires expertise. It requires understanding both your current market and the new market. It requires knowing how to evolve positioning without losing core identity.
Embedded design and strategy leaders can provide this expertise. They can help you understand the new market. Help you adapt positioning. Help you communicate the shift.
At inflection points where you're entering new markets, having embedded leadership to guide this expansion is valuable.
If you're entering a new market, here's what to do.
First, do deep research in the new market. Understand customers. Their problems. Their language. Their values.
Second, analyze how your current brand positioning lands in this new market.
Third, identify what's still relevant and what needs to change.
Fourth, develop new positioning or messaging tailored to the new market.
Fifth, adapt your brand expression (messaging, examples, case studies) for the new market.
Sixth, decide if you need one brand or multiple brands for different markets.
Seventh, test your adapted brand strategy with customers in the new market.
Eighth, launch the expansion with clear positioning and messaging for the new market.
Ninth, communicate to existing customers why your brand is shifting and what it means for them.
This is what we do at Rival. We help companies expand into new markets successfully. We help adapt brand strategy for new customer segments. We help positioning land in new markets.
Because market expansion is a critical moment. And getting your brand strategy right in a new market is essential to success.
That's why brand strategy changes for new markets.
How do you position a B2B SaaS company in a crowded market? Learn the framework, how to differentiate, and common mistakes to avoid.
Leadership gaps kill momentum. Learn five ways to maintain shipping speed while hiring a senior leader: interim, embedded teams, advisors, and more.