Question

Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline) that operate independently of one another. This is an example of ________ branding

Answer 1

Answer:

This answer is Multi-branding Strategy or Multiple Products Branding.                                          

Explanation:

This is a strategy used by companies when in their marketing approach they have created products for several targets in several markets.

In the Multi-branding strategy, each product is given a distinct name, look, and feel.

Multi-branding strategy has many advantages. They are:

• the risk that a product failure will affect other products in the line is very low as each brand is unique to each market segment.
• Having Multiple brands creates brand superiority over the market
• It is very useful for the brand switchers who keep on changing brands to try different products

Disadvantages/Risks of Multi-branding are:

• the cost and difficulty of executing a multi-branding strategy can outweigh the benefits.
• It can lead to a Cannibalization between brands. Cannibalization refers to the loss of a product's sales due to the release of a newly created product. In other words, a newly introduced product line might take away market share from an existing product line instead of gaining overall market share for the company.
• Confusion caused by overlapping segments, that will result in brand switching.
• The public image of your brand may become profit oriented, rather than the customer.
• Failure due to poor management.

Examples of companies which use this strategy are:

1. Unilever
2. Cocacola
3. Procter & Gamble (P&G)