What are the advantages and disadvantages of adopting a multi-brand strategy?

2. Advantages of multi-brand strategy

(1) Segment the market and increase market share

A target market is composed of many consumers with different needs composed. A brand can only satisfy one type of consumers, but not consumers with other needs. If you launch different brands of products according to different needs of consumers, you can attract different consumers, thereby occupying the market and increasing product market share. Procter & Gamble has designed five brands of shampoo: Head & Shoulders (anti-dandruff), Rejoice (smooth), Sassoon (professional hair care), Pantene (nutritive and bright), and Clairol (natural fruit green). The five brands are targeted at five types of shampoos. A different market to meet consumers with five different needs, thus allowing P&G's shampoo to occupy the Chinese market. It currently has a share of more than 50% in China and has extremely high brand loyalty. This is something that cannot be achieved by a single brand.

(2) Reduce market risk

Using a multi-brand strategy can avoid the risk of brand crisis caused by failure to promote a certain product in the market or quality problems. Since enterprises use different brands for the same type of products they produce and operate, they are all independently promoted in external publicity. Therefore, even if there is a problem with one of them, it will not be implicated in other brands, which greatly reduces the risk of the enterprise. business risks. In addition, it can also avoid the problem of damaging the high-quality image of the original brand caused by high-end brands using low-end products.

(3) Use the product characteristics of different brands to meet the individual needs of different consumers

The multi-brand strategy is conducive to adapting to the needs of market segments and promoting brand personalization and differentiation. It can meet the different needs of different consumer groups and highlight the characteristics of each product. This will form relatively obvious product differences in the minds of consumers to adapt to the brand preferences and consumption characteristics of different consumer groups.

(4) It is helpful to stimulate the internal vitality of the enterprise and improve the overall efficiency

Since the enterprise divides the same type of products it produces and operates into different brands according to the market segmentation theory, Therefore, a kind of competition has naturally formed among various departments and brand managers within the enterprise, which makes each brand manager feel the pressure of competition and make them work hard to do their own brand marketing and market development work. It helps to improve efficiency, thereby improving the overall benefits of the enterprise.

(5) A certain degree of resource sharing can be achieved

Multiple brands under an enterprise can share funds, market information, advertising, research and development, training, and channels. Achieve maximum sharing of resources in terms of resources, procurement and other aspects. Collaboration in every aspect has the potential to create new competitive advantages and profit growth points. In particular, various brands of similar products can be used to a certain extent in research and development and production, which can save costs for the company and speed up the operation of the company.

3. Disadvantages of multi-brand strategy

(1) Increased costs

If an enterprise determines to take the road of "one product with multiple brands", then the enterprise is destined to On the road of long-term endurance and sacrifice, expenses such as brand building, advertising, maintenance, etc. will continue to occur.

Large-scale production brings low-cost products to enterprises. The larger the scale, the lower the marginal cost of producing a single product. The stronger the consistency among the brands in the products produced by the manufacturer, the more cost savings it can achieve. Each brand among multiple brands faces a segmented market and has different product characteristics, which limits the degree of scale and causes the unit cost to deviate. High, which is a very unfavorable factor especially for a new brand.

In multi-brands, each brand has different target consumer groups. Compared with a single brand, there are relatively fewer opportunities to borrow from each other in terms of channels, promotions, and advertising, resulting in increased promotion costs.

(2) Waste of corporate resources

For new products, if the company continues to use the original brand, the market growth rate may be faster, resulting in a waste of human resources, funds, etc. few.

When adopting a multi-brand strategy, brands may compete with each other for resources and be unwilling to share more resources. Waste of resources includes many aspects, such as human resources, funds, original brand resources, etc.

(3) Increases the difficulty of brand management

Multi-brand management is much more difficult than unified brand management, because strict market distinctions must be implemented between brands. Brands must have their own distinct personality characteristics, and they must also have sufficient selling points. If there are no obvious differences between the brands, it will lead to internal friction among the brands within the company, forming "infighting". Therefore, each brand must reflect sufficient differences in a series of activities from market research to product launch to advertising and marketing, which will inevitably bring risks of complex management, large organizational structure, and increased management costs. If the company as a whole wins...

Why do P&G and L'Oréal adopt multi-brand strategies? What are the pros and cons?

Procter & Gamble: Multi-brand strategy Brand extension was once considered a risky matter, and some scholars even used the word "trap" to describe its high risk. However, looking at the operating performance of world-class companies, it is not difficult to find that there are companies like Sony that have consistently pursued the "one-child" strategy of "multiple products, one brand", and companies like Procter & Gamble that have boldly implemented it. The strategy of "one product, multiple brands" demonstrates the style of "many children, many blessings" in the international market competition. Procter & Gamble is an American company. One of its operating features is its wide variety, ranging from soaps, toothpaste, mouthwash, shampoo, conditioner, softener, detergent, to coffee, orange juice, baking oil, cake mix, potato chips, to toilet paper and cosmetic paper , sanitary napkins, cold medicines, stomach medicines, spanning cleaning supplies, food, paper products, pharmaceuticals and other industries. Second, many products have multiple brands of one product. Taking laundry detergent as an example, they launch nearly ten brands including Tide, Washhao, Octo, Porter, and Era. In the Chinese market, the soaps are Safeguard, the toothpastes are Crest, the sanitary napkins are Shubao, and the shampoos alone have three brands: "Rejoice", "Pantene" and "Head and Shoulders". If you were to ask which company in the world has the most brands, it would probably be Procter & Gamble. Looking for differences If you interpret the multi-brand strategy as the company registering several trademarks with the Industrial and Commercial Bureau, it would be a big mistake. The multi-brand strategy operated by Procter & Gamble is not to simply label a product with several trademarks, but to pursue the differences between different brands of similar products, including functions, packaging, publicity and other aspects, thereby forming a distinct brand for each brand. Personality, so that each brand has its own development space and the market will not overlap. Take laundry detergent as an example. Procter & Gamble has designed nine brands of laundry detergent, including Tide, Cheer, Gain, Dash, Bold, and Troft. Dreft, 1vorySnow, Oxydol and Eea. They believe that different customers want different combinations of benefits from products. Some people think that washing and rinsing ability are the most important; some people think that making the fabric soft is the most important; and some people hope that the washing powder has the characteristics of fragrant smell and mild alkalinity. So we designed nine different brands using the nine market segments of laundry detergent. Procter & Gamble is like a skilled chef, adding different seasonings to a seemingly simple product such as washing powder to cook a variety of delicious dishes. Not only are they distinguished in terms of function and price, but they are also divided psychologically to give different brand personalities. Through this multi-brand strategy, P&G has occupied more of the detergent market in the United States, and its current market share has reached 55%, which cannot be achieved by a single brand. Creating "selling points" If P&G's multi-brand strategy is about finding differences from the perspective of market segmentation, then from another perspective of the marketing mix, it is about finding the "selling points". Selling point is also called "unique selling proposition", and its English abbreviation is USP.

This is a widely influential marketing theory put forward by American advertising master Rosser Reeves. Its core content is: advertising should present unique arguments to consumers based on the characteristics of the product, and make consumers believe that this characteristic is not shared by others. , or what others have not said, and these features can bring real benefits to consumers. At this point, Procter & Gamble has played its part most vividly. Take the shampoos launched by Procter & Gamble in China as an example. The personality of "Head and Shoulders" is to remove dandruff, the personality of "Pantene" is to nourish and care for hair, and the personality of "Rejoice" is to make hair smooth and supple. The product advertisements launched in the Chinese market are even more extraordinary: "Head and Shoulders" shampoo, with sea-blue packaging, first reminds people of the blue sea, bringing a fresh and cool visual effect, "Eliminates dandruff without a trace, The slogan "Cleaner Hair" further establishes the belief that "Head and Shoulders" removes dandruff in the minds of consumers; "Rejoice", from the brand name, makes people understand the product's properties of making hair supple. The green packaging gives people a feeling of youthfulness and beauty. The slogan "Contains silk conditioner, shampooing and conditioning in one step, making hair elegant and smooth", coupled with the image of a girl shaking her silky hair, further deepens the feeling. Consumers’ impression of the elegant and smooth effect of “Rejoice”; “Pantene” uses apricot yellow packaging, which first gives people a nutritious visual effect. “Swiss Vitamin Institute recognized that it is rich in pro-vitamin B5 and can be produced by Penetrates from hair roots to hair tips, replenishes nutrients, and makes hair healthy and shiny"...

Disadvantages of multi-brand strategy

1. Corporate resources may be overly dispersed , cannot focus on more successful products;

2. Corporate brands may compete with themselves;

3. Multiple brands cause brand confusion;

4. A large amount of investment in R&D results in increased costs and greater risks;

What are the advantages of a multi-brand strategy?

The milk powder incident caused Sanlu, the leading company in the domestic dairy industry, to collapse with a brand value of 15 billion yuan. In addition to people generally paying attention to Sanlu Company's weak and slow crisis public relations strategy and corporate quality and safety control issues from the beginning of the accident, there is also another issue that makes those companies that adopt a single brand strategy take a breath of air-conditioning - Sanlu Dairy's three Something went wrong with Lu brand infant milk powder, which ruined the entire Sanlu brand and company. Is the company's single-brand strategy too dangerous in an era of crisis? In fact, whether a company adopts a multi-brand strategy or a single-brand strategy is a matter of opinion, just like the common question of whether it is better to have multiple employees or to specialize. Single brands include the world's top successful companies, such as international brands PHILP, CANON and China's Haier. There are also many well-known brands that adopt the multi-brand strategy. In addition to the brand king Procter & Gamble, there are also many food companies. However, if analyzed from the perspective of avoiding corporate brand risks, multi-brand strategy is indeed more risk-resistant and crisis-dispersing than a single brand. Of course, brand strategy is not limited to these contents. As the name suggests, multi-brand strategy means that a company adopts more than two brand strategies, which means giving each product a brand name and a separate brand system, or giving each type of product a brand name and a separate brand system. . This is the difference between a company adopting a single brand strategy. The multi-brand strategy can only be implemented after the enterprise has developed to a certain extent. It is adopted from the company's product structure, target market segmentation and other strategies. 1. Different markets adopt different brands. If one of the company's products is highly resistant, it can adopt a multi-brand strategy. Implement high-end brands for the high-end market, implement mid-range brands for the mid-end market, and implement low-end brands for the low-end market. Enterprises invest different levels of resources into brands for different markets, and their brands for each market will bring different benefits to the enterprise. For example, it is commonly used in the cosmetics, automobile industry, and retail industries.

Devoting more resources to the product portfolio may bring many benefits due to specialization and concentration of efforts.

The product manager's responsibility is to specify product development plans, implement them, monitor results and take improvement measures. The product manager's responsibilities can be subdivided into ① developing long-term operating and competitive strategies for products; ② preparing annual marketing plans and making sales forecasts; ③ working with advertising agencies and distributors to study advertising production and promotional activities; ④ motivating sales personnel and Dealers' interest in operating the product and support for the product; ⑤ Continuously collect information about the product's performance, customers' and dealers' opinions of the product, new problems encountered by the product and new sales opportunities; ⑥ Organize product improvements , to adapt to changing market needs.

The advantage of this kind of organization is that product managers can better coordinate the various elements of the product marketing mix and respond faster to problems that arise in the market. For smaller brands, product managers are less likely to be ignored. The relative shortcoming is that product managers do not have enough authority necessary to ensure that they perform their responsibilities effectively. Although product managers can become experts in the products they manage, it is difficult to become experts in other functions. The tenure of brand managers is usually short, and they may be transferred to manage another product or brand or leave. This makes the company's marketing plan only short-term, thus affecting the establishment of long-term advantages of the product.

3. Market or customer-based marketing organization

This type of organization is designed to adapt to clearly distinguished market segments. A problem that may arise is that as the company serves more and more markets and customers, it must hire large numbers of salespeople.

Marketing managers are responsible for developing long-term and annual plans for the market. They need to analyze the trends in the market in charge and analyze what new products the company should offer to that market. Their work performance is often judged by the increase in market share, rather than by the current profitability of their market. The functions that marketing managers need to do their jobs *** are provided by other functional organizations. The marketing manager in charge of important markets even has several functional professionals who report directly to him.

The advantage of this type of organization is that marketing activities are organized and arranged to meet a variety of apparently different customer needs, rather than focusing on the marketing function, sales territory, or product itself.

4. Marketing organization based on geographical area

Companies that develop product markets in a wide geographical area are suitable for this organizational form. In particular, the company's product range is limited, has homogeneous characteristics, and needs to cover many territories quickly.

5. Marketing organization based on distribution channels

This organizational form is suitable for selling a series of products to both consumers and industrial customers. It is clear that each distribution channel here needs to be organized in a different way. Functions such as corporate advertising and market research can serve as the center, with other departments serving as offshoots of this center. The relationship between centers and departments must be clear...

What are the advantages of implementing a multi-brand strategy?

The most important starting point of a multi-brand strategy is to highlight individuality and target target consumers.

Today’s life is colorful and consumer demands are becoming increasingly diversified and differentiated. From the era of mass consumption to the era of focus, if companies can develop multiple brands based on in-depth scientific market research, they can provide everyone with Sub-brands all seek appropriate brand positioning. Each sub-brand carries out product design, personality positioning, distribution planning and advertising activities for a certain segmented group. Then the personality and product interests of each brand can be more consistent and cater to their needs. Targeting the special needs of that group of consumers will naturally gain the trust and brand loyalty of this group, making it more competitive than a brand that targets the general public with no characteristics.

(You can refer to the book "Local Brand Strategy" by brand strategist Weng Xiangdong)

What are the advantages and disadvantages of differentiated marketing strategy

Advantages: It can stand out in the fierce market competition and open up its own market. Own market

Disadvantages: Risky, may be a niche market, small consumer group

What are the marketing brand strategies? What are their advantages and disadvantages?

Marketing brand strategies include: 1. Start with external features, such as packaging and brand name, which are the externalization of the overall quality of the brand, while reasonable pricing determines a grade for the brand.

2. Start with intrinsic quality, mainly based on the actual content of the brand’s social value. For example: technological advancement, market share, unique functions, social reputation, comprehensive summary and artistic improvement of the above qualities to carry out brand marketing;

Third, start from the spiritual value, which is through wisdom The specific ways of expanding new value include carrying out some heartfelt public welfare activities, well-measured public service advertisements, and image advertisements with some spiritual values. Marketing has the following advantages: 1. Enterprises that use niche marketing The target market is small and single, making it easier for companies to conduct market research. The purpose of market research is to provide accurate and reliable basis for enterprise decision-making regarding market changes: the acquisition of these basis relies on the collection of market information and scientific analysis methods. Since narrow marketing focuses on small market conditions, it greatly reduces the complexity of target market research; market research can be carried out in a shorter time, and the cost paid by enterprises is also smaller, such as in narrow product lines. , the target market has a single geographical distribution, and the market purchasing behavior is highly consistent, it is easy to achieve advantages in many aspects, and the research objectives are more certain to be achieved. Effective analysis of these marketing determinants will help companies gain a thorough understanding of the market, thereby taking "short, flat, and fast" actions to quickly enter the market and reduce promotional costs. 2. Use narrow marketing to facilitate companies to strengthen customer service management. On the basis of research on the target market, enterprises can grasp the behavior of the target market and the immediate needs of consumers, and deeply realize that the needs of customers are exactly what the enterprise must meet. In this way, companies can carry out product development and business adjustments in a targeted manner based on customer requirements. And because narrow marketing activities are concentrated in a small market, even if the company spares no effort to provide services to customer requirements, it will not cause a great increase in the company's overall operating costs. Therefore, slot marketing has become a powerful weapon for the competitive advantage of most enterprises, especially small and medium-sized enterprises. 3. Enterprises that use narrow marketing can easily grasp marketing goals. The marketing goal of a company is not that bigger is better. Within a certain period of time, it must match the company's internal resources and be conducive to the company's control of marketing goals and development direction. A company's control over its marketing objectives depends on its power and position in the market. Including; the market share of enterprise products, customer brand loyalty, the status of enterprise information systems, etc. are related to the core factors of enterprise products based on the market. Since niche marketing is conducive to the company's market research and mastery of market information resources, as well as the brand loyalty established by effective services to the target market, companies have reason to have confidence in the early market share of their products. The company's grasp of marketing goals and the trade-off strategy formed after comparing and weighing internal resources make the company inseparable from the market and achieve the best marketing situation.

Which is better, single brand strategy or multi-brand strategy?

The difference between the two brand strategies. Single brand strategy and multi-brand strategy are two different brands used by food companies to build brand architecture. Strategy mode. Single brand strategy refers to a brand strategy model in which food companies use the same main brand or the same main brand plus different sub-brands for multiple varieties and categories of products. Multi-brand strategy refers to a brand strategy model that uses the company's brand as an endorsement and uses different brands for different categories of products. Successful cases of single brand strategy application Typical cases of using single brand strategy to expand the market and strengthen the brand are Master Kong and Uni-President.

Different categories of Tingyi products use a single brand strategy of Tingyi's main brand plus product categories or Tingyi's main brand plus product sub-brands. For example, the main brand of Master Kong plus product sub-brands include Master Kong 3 2, Master Kong Fresh Daily C, Master Kong Noodle Bafang, etc.; the master brand of Master Kong plus product categories include Master Kong iced black tea, iced green tea, etc. Uni-President is also a representative brand that has successfully adopted a single brand strategy. In unifying all different categories of products, a single brand strategy model of unifying product categories or unifying product sub-brands is used. For example, Uni-President adds product categories such as Uni-President Orange, Uni-President Peach, Uni-President iced black tea, iced green tea, etc.; Uni-President adds product sub-brands such as Uni-President Come One Bucket, Uni-President 100, etc. The single-brand strategy has helped Tingyi and Uni-President become well-known and successful brands in the food industry. Successful cases of multi-brand strategy application Typical cases of successful multi-brand strategy include Dali Group in Fujian and the internationally renowned brand Coca-Cola. Let’s first take a look at how Dali Group builds its multi-brand structure. As a corporate brand, Dali Group provides endorsement for its product brands. Dali Group currently uses different product brands for its three major categories of products. For example, the potato chip series products use the "Copico" brand, the pastry series products use the "Haochidian" brand, and the beverage series products use the "Daliyuan" brand. The three major series of products and the three major product brands simultaneously support the corporate brand of Dali Group and also leave room for brand development for Dali Group. The world's food giant Coca-Cola also adopts a multi-brand strategy model. Faced with the gradual shrinkage of the carbonated beverage market, Coca-Cola had to enter the fruit juice beverage and tea beverage market. However, fruit juice drinks and tea drinks do not use the Coca-Cola brand, but adopt a multi-brand strategy. For example, Coca-Cola mainly uses the "Coca-Cola" brand for carbonated drinks, the "Yuanye" brand for its tea drinks, and the "Minute Maid" brand for fruit juice drinks, etc. The multi-brand strategy will not easily harm the main brand of Coca-Cola, but also expand new market space for the company. Comparison of the advantages and disadvantages of two brand strategies The main advantages of a single brand strategy are: (1) The brand structure is simple and clear; (2) The corporate brand has strong pull on products; (3) It can save the cost of brand communication, etc. The main disadvantages of a single brand strategy are: (1) The market risk is relatively high, and problems with one type of product will have a greater impact on the market of other categories of products; (2) It is inconvenient to conduct deeper market segmentation, etc. The main advantages of a multi-brand strategy are: (1) Brand positioning will be more accurate; (2) It is more conducive to expanding the scale of market segments; (3) The market risk is relatively small, and problems with one type of product will have an impact on other categories of products. Smaller etc. The main disadvantages of the multi-brand strategy are: (1) It requires more brand investment, and each product brand requires separate communication expenses; (2) More brands will increase the difficulty of corporate brand management, etc. How food companies build their own brand architecture Food companies should choose to adopt a single brand strategy or a multi-brand strategy based on their own conditions. Accurate Planning believes that if your company's product categories are relatively single, the company spends less on publicity, and its marketing management capabilities are weak, we suggest that it is more appropriate for you to adopt a single brand strategy. If your company is large in scale, has many product categories, spends a lot of brand promotion expenses in marketing, and has strong marketing management capabilities, we recommend that you consider adopting a multi-brand strategy. It is not advisable to have too many product brands in the early stage, generally about 2. First, concentrate resources to expand these two product brands to support the improvement of the corporate brand, and then use the influence of the corporate brand to drive the operation of other new brands. The advantage of this is that it not only saves communication costs, but also reduces market risks. Main conclusions From the above analysis, it is not difficult to find that whether to adopt a single brand strategy or a multi-brand strategy is mainly determined by the conditions of the food company itself. Both brand strategies have their own advantages and disadvantages, and there is no right or wrong, good or bad. .

Precision Planning hopes that more food companies can understand the advantages and disadvantages of single brand strategy and multi-brand strategy, and build...

Briefly describe the characteristics, advantages and disadvantages of several target market strategies

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Differentiated target market strategy

Undifferentiated target market strategy

Concentrated target market strategy