Why do manufacturers adopt multi-brand strategy?

(1) Maximize social opportunities. Due to the limitation of single brand strategy itself, the market coverage of single brand is limited, especially in the case of different product positioning, the target market will be very different, and the implementation of multi-brand strategy can solve this problem well.

(2) Due to business needs, more brands must be used.

First, brand substitution, that is, the original brand, for some reason, its brand image can not meet the needs of market sales, or can not continue to be the silent spokesperson of enterprise products, and needs to rebuild a new brand. For example, Kelon Group initially had only one refrigerator brand "Rong Sheng". Later, due to the proliferation of counterfeit products, the market image of "Rong Sheng" brand was damaged, and enterprises had to use "Kelon" brand to reshape the market image.

Second, the market positioning of the original brand has been very clear, which is not suitable for the new products promoted by enterprises. For example, "Yangshengtang" is a well-known pharmaceutical brand. Enterprises should not continue to use the brand of "Yangshengtang" when launching drinking water, and need to rebuild the new brand of "Nongfu Spring".

Third, due to the differences in culture and customs, even if a brand has a good image and reputation, it is impossible to enter the international market. For example, the Coca-Cola Company of the United States renamed "Diet Coke" as "Coke Light" in Japan and "Coke Light" in France. This is because diet in Japanese culture implies diseases or drugs, while in French culture.

(3) Adopt multi-brand strategy to realize strategic shift quickly. Philip? Morris Company is a world-famous tobacco and grass producer, famous for producing Marlboro brand cigarettes. With the rise of anti-smoking campaigns in various countries and the strengthening of consumers' awareness of self-protection, the market space of the company's traditional main business has been squeezed. The company realized that if it didn't reform its existing business, its living space would be reduced.