What is MULTI-BRAND STRATEGY?

Under different and unrelated brands two or more similar and competing products are marketed by the same firm. Multi-brand strategy has some advantages as a means of (1) holding more shelf space, leaving less for competitors’ products, (2) filling all price and quality gaps, saturating a market, (3) catering to brand-switchers users who like to experiment with different brands, and (4) generating internal competition, keeping the firm’s managers on their toes. Meanwhile these brands eat into each others’ sales. Refer to cannibalism.

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