Multi Branding

Posted in Marketing and Strategy Terms, Total Reads: 14379
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Definition: Multi Branding

The marketing of more than two or more brands, belonging to the same or related category, by a company is called multi-branding. In this case, the brands are mostly substitutes of each other.

One of the things to consider while managing multiple brands portfolio is that there is a constant need of analyzing the condition and profitability of each brand and to decide how much marketing and other expenditure needs to be done on it, if at all it is to be continued. Hence there is a constant requirement of line pruning.

Example:

Hindustan Unilever Ltd (HUL) has a number of bathing soap brands, for example Breeze, Dove,  Hamam, Lifebuoy, Lux, etc. This is an example of multi branding since there are many soap brands under the category of bathing soaps under the umbrella of HUL.

The advantages associated with multi branding are:

  • Since a market is divided into segments, different brands targeting different segments can lead to higher share of market for the company
  • Greater shelf space and facings in retail stores could be obtained, increasing the visibility of the company as a whole
  • Greater alternatives to consumers, especially for customers who switch in between brands frequently

Risks associated:

  • Cannibalization between similar brands
  • Dilution of the difference between different brands
  • Overlapping consumer segments may get confused, and may eventually switch to a brand outside the company’s umbrella
  • The image of the company may become that of profit seeking and not customer oriented

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