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.
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
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