Multi-brand strategy
The same product categories in the introduction of multiple brand strategy known as the multi-brand strategy. Securities investors often invest a variety of stocks, an investor of all shares held by the collection is the so-called portfolio (portfolio), in order to reduce the risk of increased profit opportunities, investors must constantly optimize the equity portfolio. Similarly, the establishment of a portfolio of brands, the implementation of multi-brand strategy, often based on the same considerations, and such brand portfolio among various brand image is also linked to the existing differences, not stew, contains a combination of the overall concept More than individual significance.
(1) nurturing the needs of the market. Not a single brand alone can cultivate a market. Although initially a certain brand to outshine others, but once hard, and so it opened up to a fertile market, other people will be flocking to. Many market competitors opened up a common market, the market will help the rapid development and maturity. When the market began to divide, many contributors to the advertising market usually unavoidable, its effect is to further strengthen the product category of the common advantage. Some market at the beginning of a dynamic, but not the final form of climate, one of the reasons is that few participants. If a wholesale market only 23 shops, empty, the market is not what the market. There are a number of brands together to support an overall market absolutely necessary. Personal computer market as an example, if a business only Apple monologue, no other computer manufacturers follow-up, absolutely impossible for this popular form today's PC market.
(2) various brands so that enterprises have the opportunity to maximize market coverage. Not a single brand alone can occupy a market. As the market matures, the needs of consumers gradually broken down, a brand can not maintain its basic meaning and at the same time meet the same objectives. That is why some enterprises to create a number of brands to the market to different segments of their mind. On the other hand, Western retailers in recent years the rise of self-brand manufacturers to issue a strong challenge to shake the manufacturers to establish and maintain a brand on the active and dominant position. Multi-brand strategy will help manufacturers and retailers curb brokers control a brand further about their own abilities.
Multi-brand offers a flexible, help limit the expansion of opportunities for competitors, making competitors are in every segment of the existing brands are entering the obstacles. In the price war to defend the main brand, multi-brand is indispensable. Those secondary brands, as a small unit forces, launched a price war to the competitors to quickly crack down on the flank, who helped to provoke both difficult to Gu. At the same time, the core brand's leading position will be Haofa prejudice. Leading brands shoulders ensure that the entire product category of the profitability of the task, their status must be defended Otherwise, once the charm of its decline, product unit profit would be difficult to rehabilitation or the end of the brand would be rejected by retailers.
(3). Highlight and protect the core brand. When the need to protect the image of the core brand, multi-brand presence all the more significant, in the absence of core brands in the grasp of innovation can not be blindly risk. For example, to defend the brand equity, the Disney film production companies in its use of multiple brands, making Disney enterprises can produce all types of movies, so as to avoid the damage of Disney's prestigious image. In the West, the retail system to the keen interest in brand diversification, manufacturers use of multi-brand strategy to improve their overall market share, to increase their weight in the trial of strength with retailers.
Therefore, the multi-brand strategy will help cultivate business, market coverage, lower marketing costs, restrictions on competitors and effectively respond to the challenges of retailers.
