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.
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.
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-
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.
Take FedEx corporation as an example of this kind of multibranding. So far, they have four different sub-categories of products and services.
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.
The second kind of multi branding practices is pretty similar to the first one. But the only thing it differs at is the support from the parent brand.
Take Virgin Group as an example. They have sister concerns with names of-
Although the parent brand keeps supporting them all, but the unique brand value exists in the market.
When each of the brand’s functions on their own names, and users have hardly any clue that they are from the same inventory, that’s the third kind of strategy.
Take Unilever as an example. It has multiple product lineups in beauty, grocery, healthcare, food, and many other sectors. But each of their products has different identities, completely unique from each other.
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-
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.
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.