Multi Branding
This article covers meaning & example of Multi Branding from marketing perspective.
What is Multi Branding?
Multi-branding is the marketing of more than two or more brands, belonging to the same or related category, by a company where 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.
Multi Branding Advantages
The advantages associated with multi branding are
1. Since a market is divided into segments, different brands targeting different segments can lead to higher share of market for the company
2. Greater shelf space and facings in retail stores could be obtained, increasing the visibility of the company as a whole
3. Greater alternatives to consumers, especially for customers who switch in between brands frequently
Risks associated with Multi Branding
1. Cannibalization between similar brands
2. Dilution of the difference between different brands
3. Overlapping consumer segments may get confused, and may eventually switch to a brand outside the company’s umbrella brand
4. The image of the company may become that of profit seeking and not customer oriented
Example of Multi Branding
Hindustan Unilever Ltd (HUL) has a number of bathing soap brands, for example Breeze, Dove, 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.
Hence, this concludes the definition of Multi Branding along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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