By A multi-brand approach is where a company offers two or more products of the same commodity category.
Mostly, the products that make up a multi-brand campaign are designed for particular consumer audiences or price points. Consumers must be able to discern credible brand distinction, and brands must come in a variety of impartial or emotional qualities and added values.
An organization may decide to pursue a multi-brand strategy to attract a wider audience or build a premium line to cater to customers who can charge more for a brand. They would have to go through the branding elements and brand association to come up with such a decision, or they just instantly do after being recognized in the market.
Consider the following scenario: you’re launching a skin cream company and have two brands in the works. One is produced with very exclusive and costly materials, while the other is a decent simple cream that is inexpensive. Isn’t it true that the target markets for these two facial creams are vastly different? The same target consumer is unlikely to be involved in both brands.
why would one want to get these two creams under separate labels and brand identities?’ you might ask. Isn’t it twice as much hassle to manage two competing brands?’ This is when things are a little complicated. You could keep the two brands under the same name and label the fancier one a luxury edition, or you can split them so the buyer doesn’t compare the two.
Having two very separate brands into one brand name is likely to make brand marketing and consumer appeal more challenging. Luxury goods, eco-friendly items, organic items, non-natural items, and so on are all sold individually. You may be evoking cognitive dissonance if you have brands with distinct advantages and markets grouped. Now, let’s have a better picture of the advantages and disadvantages of a multi-brand strategy.
Pros and Cons of Multi-Brand Strategy
Its Advantages:
Potential to position your brand as a market leader
You’re far more likely to develop a loyal fanbase for your company if you raise brand recognition. Even though they have not experienced the product, a consumer will remember the parent company and assume that they are making the right choice. They equate the brand with quality and are more likely to buy other items from the firm.
More shelf space
Although each product’s identity is exclusive and appeals to all types of customers, you will gain an advantage over the competition. If you have eight separate varieties of shampoo on the shelf, for example, there is less space on the market for rival brands. Since each product’s messaging is special, customers can not know that the organization manufactures both of them.
Cater to customers who like to switch brands
And when a consumer is satisfied with a commodity, it’s not unusual for them and switches brands to check if they want anything different. Companies that have a multi-brand approach will cater to these customers without having to switch brands.
If you don’t keep track of your brand’s credibility and a disaster occurs, your other products can be unaffected. In a multi-brand approach, every brand has its particular branding and personality, and each target demographic is usually different. Consumers might not be aware of which labels belong to the same family in certain instances.
Its Disadvantages:
Keeping brands distinctly different
It may be challenging to distinguish all products from one another while maintaining solid brand identities for each. If customers believe the products are interchangeable, you’re competing with yourself rather than attracting new target markets.
Since poor brand identities will lead to internal rivalry, brands must devote extra attention to developing and campaigning for brand guidance. Notice how a multi-brand strategy organization would use an immersive, cloud-based Brand Center to create distinct personalities and clear branding.
Loss of credibility
As people see a name and choose they would not like to buy any of the brands and the brand’s products, the result could affect all the various goods that the business produces. It would give the brand a bad image, or if not it would lead to people forgetting or not even knowing the brand.
New products that don’t live up to the standards of quality
Some other downside to a multi-brand approach is that people are likely to be more critical of younger brands and they demand a particular degree of consistency while they shop. People can be able to reject a new product if it fails to meet the same expectations, leaving poor feedback.
Spreading resources too thin
Companies that market a variety of brands should concentrate on developing a distinct brand personality with each one. People would be less able to buy products if they do not identify with them. If this is really the case, instead of wanting to release more innovative goods, a corporation can go down to the design board to reflect on what is successful and what isn’t.
One product can perform better than others
The drawback to getting several labels is that one name can be more lucrative than the others. Companies should consider whether it’s worthwhile to devote more time and selling resources to the goods that aren’t selling well.
Overlapping of brands
They have the option to expand into other product categories if they are unable to find their desired product, rather than remaining under the influence of one company and risk being lost. If there are so many choices available, certain customers may be unable to make an informed decision.
Jess Torres, a blogger and self-proclaimed lover of food, is the woman behind WellnessFit. When not writing, she enjoys exercising and exploring the outdoors with her dogs.
