Buying Different Brand But Same Company
Have you gone to the market only to see a new brand of a product you always need and decided to give it a trial and you decided to pick the new one over the previous one you usually purchase due to certain things you like about the new one?
So many of us do this and we do it because we love to have choices as humans. We are a choice people, always wanting to pick from different things since we are insatiable. Some people might just like the package of a product and decide to buy it over another while others will pick a product over the other due to so many other reasons but in all, we love choices.
Businesses have seen this and have decided to use multi-branding strategy to get a large portion of the market. Have you tried checking the companies producing your favorite items as well as the competitors? You will be shocked to learn that the company the produces the product you cannot do without is the same company that manufactures the product that stands as the competitor and while you see them as competitors, the company sees it as a opportunity to get a larger portion of the market share. They do it just to have a bigger part of the pie such that if you do not go for product A you would pick its competitors who are also owned by the same parent company.
These companies create a competitor to their already existing product with a different name, brand, and identity thereby making it different from the already existing product. Companies use multi brand strategy not for the purpose of competition, they do it so they can serve a wider range of customer within the category because in a category, there will be segments that the current brand won't meet because they will not want what the brand gives. The essence of multi branding is to be able to meet those categories and meet them increasingly.
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An example of companies that practice multi branding strategy is friesland campina which is the manufacturer of peak milk, Nunu milk, Coast Milk, Three Crown Milk and a variety of other milk in the same milk segment. Another is Olam groups which produces tomato paste and they are the producers of Tasty Tom, Festin, De rica, and many more.
In the automobile industry, Toyota is a company that produces low income cars, they are known for that and for them to reach people who want luxury, Toyota decided to create the Lexus brand for people who want luxury. These companies have been able to increase their market share, they are able to increase sales and revenue while appealing to different people.
Posted Using INLEO