Naming a new product is an important step in the product development process as it can greatly impact its success in the market. The name you choose for your product will be the first impression that potential customers have of your brand, and can influence their perception of the product's value, quality, and uniqueness. Here are some tips to help you choose the best name for your new product: Keep it simple and memorable: The name of your product should be easy to remember, spell, and pronounce. Avoid using difficult words or puns that can confuse your customers. Make it meaningful: The name of your product should reflect its features, benefits, or purpose. Consider the emotions that your product evokes, and choose a name that embodies those feelings. Consider your target audience: Think about who your target customers are, and what they would be looking for in a product name. Choose a name that appeals to your target audience and resonates with them. Conduct market research: Before finalizing the name of your product, research the market to see if the name you have chosen is already taken or if there are any negative connotations associated with it. Be unique: Choose a name that sets your product apart from the competition. Avoid names that are too similar to those of other products in the market, as this can lead to confusion and dilute your brand's identity. By following these tips, you can choose a name for your new product that effectively communicates its value and distinguishes it from the competition.

1. The Best Way to
The Best Way to
a New Product
a New Product
Jahangir Hyder
General Manager, Marketing
Labaid Limited (Diagnostics)

2. Larisa Kovalenko
Boston College
A strong existing brand is
a strategic resource for managers
wishing to introduce a new product,
But they must be
careful not to kill
the golden goose.
A Make-or-Break decision

3. Nearly 20,000 products
Introduced by U.S. CPG (Consumer Packaged Goods) firms
From 2000 to 2012
New products’ performance
Companies’ financial returns
Examined
Analyzed
A Make-or-Break decision

4. STRATEGIES
New brand
Entirely original name
Direct extension
Existing brand name plus a descriptive word or phrase
Sub-brand
Existing brand name plus a nonspecific word or phrase
A Make-or-Break decision

5. Customers are more likely to try a new product with a
familiar association.
Companies have to expend fewer marketing resources
to launch it.
Tying to an existing brand
A Make-or-Break decision

6. Weak or failed brand extensions can
harm the parent brand.
Customers get confused, wondering about true
nature and quality of the brand itself.
Sales of both parent brand and brand extension
suffer, sometimes the new product ultimately
has to be discontinued.
Tying to an existing brand
A Make-or-Break decision

7. P R I N C I P L E S
five product and firm characteristics
that guide the most successful branding choices.
A Make-or-Break decision

8. P R I N C I P L E
Fit with the company’s other offerings
When a new product doesn’t tie in naturally to an existing
brand portfolio, customers may become confused or put
off if that product uses a familiar brand name.
In cases of an obvious mismatch, managers would be
better off creating wholly new brands.
That’s why the Coca-Cola Company introduced its
noncarbonated sports beverage as Powerade.
A Make-or-Break decision

9. P R I N C I P L E
Innovativeness of the new product
Innovation is inherently risky.
Companies bringing out a truly novel product generally
should use a new brand.
In that way, companies can avoid imperiling their existing
brands should things not pan out.
A Make-or-Break decision

10. P R I N C I P L E
Innovativeness of the new product
In 1990s, Unilever introduced Persil Power - a detergent
with a special cleaning formula - positioning it as a sub-
brand of its popular Persil detergent.
Clothes washed in hot water with the new detergent
were falling apart.
Unilever hadn’t foreseen this problem because it had done
most of its testing at cooler water temperatures.
RECALLED ABANDONED DAMAGED
A Make-or-Break decision

11. P R I N C I P L E
Innovativeness of the new product
Conversely, when an innovative product has an entirely
new name and enjoys commercial success, it becomes
an asset that can be leveraged with appropriate brand
extensions down the road.
A Make-or-Break decision

12. P R I N C I P L E
A Make-or-Break decision
The breadth of the existing portfolio
A company owning many active brands can find a good fit
for a new product and can favor a direct-extension brand.
If you are Procter & Gamble,
you will find it much easier to
tie a new product to an existing
brand than a company with only
a few options to choose from.
Larisa Kovalenko
Boston College

13. P R I N C I P L E
The risk of brand dilution
Some companies introduce so many products under one
brand that the brand loses its magic.
It causes –
• Unclear brand positioning
• A lack of focus
A Make-or-Break decision

14. P R I N C I P L E
The risk of brand dilution
Luxury brand Pierre Cardin overextended itself.
After successfully moving beyond fashion into perfumes
and cosmetics, it started losing margins, revenue, and
brand equity when it extended into numerous unrelated
categories, e.g. baseball caps and cigarettes.
A Make-or-Break decision

15. P R I N C I P L E
The risk of brand dilution
The researchers also point to Virgin Group.
It has been criticized for its several dozen sub-brands in
categories including record labels, cruise lines, retail
banks, telecommunications, and airlines.
A Make-or-Break decision

16. P R I N C I P L E
Amount of advertising funds
Firms lacking the resources to provide strong advertising
support should avoid the capital-intensive task of
building a brand with an entirely new name.
Well-resourced firms can be bolder, as they stand a
better chance of getting a new-to-the-world brand name
off the ground.
A Make-or-Break decision

17. Companies that followed the guidance of the five principles saw, on average:
a 0.18% increase in stock market value
in the five days around the product launch.
For large firms that translates to:
as much as $26 million in shareholder value.
Outcome
A Make-or-Break decision