In every competitive business, possessing a larger market share is what everybody wants. When it comes to the competition between relatively larger corporations,
Umbrella Marketing Strategy or Multi-branding Strategy are two of the most practiced pathways.
In today’s article, we’ll make a skeptical approach to learn what is a multi-branding strategy, and how you can master on it for your business.
What is Multi Branding Strategy
The multi-branding strategy is a company’s approach to market more than one product and brands under the same hood. The products that are inside such marketing plans, can be also competitive to each other in terms of similarity.
The core idea behind the multi-branding strategy is to increase overall market share. There is a good chance that the products can eat up one another’s market share. But compared to the advantages of the strategy, companies are likely to embrace that risk.
For adopting the multi-branding strategy, B2C is a better industry comparing to B2B. Because market segmentation becomes easier in that way, and it influences the customer and their purchase decisions as well.
Why Do Brands Go for Multi Branding Strategy?
Due to the competitive attire of brands, it’s almost impossible for a single brand to satisfy each of the market segments. To relate to customer’s essence, brands need to maintain, diversify and apply multi-branding strategy into these different segments of the market.
There are some clean and clear benefits when you adopt the multi-branding strategy as a brand. Here is the list-
- 01, Brands can obtain better and more shelf space in the market. There is a very little room left for the competitors.
- 02,To fill up the price and quality gap, you can saturate the market through a long term multi branding strategy.
- 03,For catering those kinds of users who like to switch between brands, a multi-branding strategy is surprisingly effective.
- 04,An internal competition into different firms is created throughout this way. It helps the manager’s of these firms to stay on their toes. Types of Multi-branding Architecture
Types of Multi-branding Architecture
At this point, we’ll be taking you through three of the most practiced types of
multi-branding architecture. All three of them are widely practiced around the globe.
When Products are Named After the Parent Brand
Take FedEx corporation as an example of this kind of multibranding. So far, they have four different sub-categories of products and services.
- 01, FedEx Services.
- 02,FedEx Ground.
- 03,FedEx Express.
- 04,FedEx Freight.
Each of the segments has its own product lineup, and they have got different suffixes as well. As an example, FedEx Services has got FedEx Office, FedEx TechConnect. FedEx Express has got FedEx Supply Chain, FedEx Trade Network and so on.
The only thing that can distinguish among these products is the brand identity. This reduces the marketing cost by a good scale as well.
How to Master on Multi Branding Strategy:
The BCG Matrix
Adaptation of an Umbrella Marketing Strategy or Multi-Branding Strategy is one of those trends that brands and corporations are looking forward to. A model called BCG(Boston Consulting Group) is known as the role pathway through this strategy. At this point, we’ll talk about SCG model and how to adopt it into your business.
Breaking down the elements of the BCG Matrix, we can find four elements-
01, Cash Now
If you have a product which contains a good share of the market, but with limited or slow growth, those are labeled as ‘Cash Now’ products.
These products may have been bringing cash in for a long period of time, and the other brands are not performing well. These kinds of products are the golden goose for the company. You should constantly focus on turning these kinds of products into Star(the next section).
Example: Macbook for Apple, and Five Star for Cadburys.
This is the kind of product with a good market share and a good growth rate as well. Of any company’s portfolio, this kind of products will be on the top of the list, and these will be the products the company is renowned for.
As it’s making a good cut for the company, the company should strive to maintain the product without any tampering. By tampering, we mean it with respect to the brand image, brand promotion, and other similar factors.
Example: Dairy Milk for Cadburys, and iPod for Apple.
Advantages and Disadvantages of Multi Branding
Multi-branding is not all about a bed or roses. There are both advantages and disadvantages to it. And brands are all aware of both of them.
Advantages of Multi-Branding
- Less room is left for the competitors in the market.
- It’s easier to earn the dominance in the market.
- Users who are brand hoppers can be still kept under the same hood.
- Internal competition is fostered, resulting in competitive growth.
As long as you have a crystal clear idea on what the competitions are doing, and how your products are performing in respect to them, multi-branding can be a good shot for you. Hopefully, this article would give you a hand to initiate the whole process.