I used to research a lot on brands, their marketing and other interesting case studies. many huge brands had this “ ” thing in common but I couldn’t find anything that explains this idea for a common man so decided to write one. — Sounds like a term from a very hard subject but it’s very simple. It means a company that sell products under one or more brands. Multiple Brand Multi Brand Strategy We come across many brands, but only a few people might know that all these brands are owned by one company. Let’s name a few, Pantene, Oral-B, Gillette, Pampers, Ariel, Olay, Head&Shoulders(…) — owned by P&G Volkswagen, Skoda, Audi, Bently, Lamborghini, Bugatti — owned by Volkswagen OnePlus, OPPO, Vivo, Realme — owned by BBK Electronics Why should I use multiple brands when I can sell directly under one brand name? The answer is, very simple — it depends. It depends upon your product, brand and the target audience. In simple words, to increase brand value, use master brand value to boost sub brand’s sales. Same Brand — Different Products = (Like Amazon — Amazon Basics, Amazon Prime, Amazon Music) To Increase The Market Share, To Cater Different Target Audience. Similar Products — Different Brands = Let’s say TATA wants to sell the world’s most expensive car under brand name , the chances of that car being sold is very very less when compared to launching that same expensive car under its other brand . TATA Motors Jaguar Or let’s say premium smartphone maker wants to sell the most affordable smartphone something like under or wants to sell the most expensive smartphone like at . they would be able to sell it. But if a brand like wants to sell the worlds best smartphone at people won’t even be interested to try it out. Apple $149 $6999 Micromax $6999 Here’s were multi-brand strategy can help you. Create new brands for different target audiences — A brand dedicated to premium audiences, a different brand for the audience who prefer a more durable version of your goods and one more for a cheap and affordable type. By this way, you can satisfy all types of audiences with the same team, technology & infrastructure. Advantages. — When someone is not satisfied with “Brand A” they will switch to “Brand B”. For consumer products, it helps a lot (If A&B owned by same company then its a win) = — Working on one brand to acquire more market share is more complicated & challenging. With multiple brands its easy to dominate the market or at least easy to break competitors market share. More brands More market share (becoming a market leader) — In-screen fingerprint sensor was launched by Vivo but shared between its other . Sharing all your knowledge & technology umbrella brands ( Umbrella brands — a group of brands under a single hood/umbrella). — Brands are also an asset when you have more successful brands, it means your business is worth more. You can even sell one of your sub-brands to your competitors. More brands = More worth to your business (Like what Uber did with its UberEats — Zomato has acquired the Indian operations of UberEats for $350 million ) Risks — Many models & features are kind of look-alike between Oppo, Vivo, Oneplus. Lack of differentiation across brands — Working on multiple brands are overwhelming & complicated eventually losing focus. Lose focus — Spending on marketing to build your new brand is kind of expensive while competing with your own brand is more expensive than that. Marketing Should I follow this multi-brand strategy for my brand? It doesn’t matter how big or small your existing brand is, all you need is a clear idea about your new brand and how it’s different from the existing one. If you are a new brand trying to establish your business then, I wouldn’t suggest this. But if you are someone who had already established some stable business, then you can venture into new brands. If your brand has basic infrastructure and a strong team, you can give this a try. Make sure you differentiate your brands with distinctive branding, target a new audience, new price point (premium or vice versa) and most importantly innovate. End of the day, if you have a very clear idea of what your competitors are doing, and how your products are performing when compared to them, a multi-brand strategy can be a good shot for you. Previously published here .

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Should You Implement a Multi-Brand Strategy for Your Startup?

Should You Implement a Multi-Brand Strategy for Your Startup?

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