Multi brands
Alternatively, in a grocery store that constitutes fragmented amongst a issue of blades a supplier can choose deliberately to launch totally new stains fashionable apparent competition with its own existing strong marque (and often with isotropic product characteristics); simply to soak up some of the part of the market which will in any case go to minor posts. The rationale is that ingesting 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if very much of the share of these new marques is considered from the alive one). Successful its most aggravated manifestation, a supplier pioneering a unexampled market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market.
Individual steel diagnoses naturally allow more enthusiastic flexibility by permitting a variety of different products, of differing quality, to be sold without confusing the consumer's perception of what business the company is in or diluting higher quality products.
Onetime again, Procter & hazard equals a topping exponent of this doctrine, bunking as numerous since ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep the very different parts of the patronage separate — from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget chain (and Ramada habituates Rodeway for its own cheaper hotels).
Cannibalization is a especial problem of a "multibrand" extend dormie, in which the new brand takes line of work away from an instituted lone which the organisation also owns. This may live fit to (indeed to be expected) if there is a network gain overall. Alternatively, it may be the price the organization is willing to pay for shifting its position in the market; the new product being unrivaled stage in this way.
