Many organisations opt for Multi Brand Technique in order to make economies of scale utilizing the basic advantages of the approach. But it cannot be denied that Multi Brand Strategy can easily fail due to poor managing and because of adoption of unprofitable business models. Variable Brand Approach refers to an advertising strategy under which two or more than two similar products of a company are marketed under Several Brand names.

Generally in most of the situations, these products will be competing kinds and are advertised under the Brands which are completely unrelated. Several companies take up this Variable Brand Approach, as the strategy gives some advantages. First of all, by simply adopting Multi Brand Technique, a company can obtain greater space in the market, in which little space is left for the competitor business houses. Subsequently, by marketing similar products under several Brand Names, a company can complete the Price Spaces and Quality Gaps in the target market.

This way, the market could become saturated with the similar products of the same organization. In every industry, there are some customers who usually change brands in order to test out products of numerous brands. By simply adopting the secret of Multiple Brand Approach, a company can easily serve successfully to these Brand Switchers. If a company undertakes Multi Company Strategy, the managers from the company will be bound to function efficiently because internal competition is produced at a top degree. The decision of a firm in implementing Multi Brand Strategy, depend upon which success with the initial manufacturer.

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If the preliminary brand becomes successful, then through franchising and selling, a company can produce a second manufacturer without producing much expenditure. The Dispenses can promote both the main and extra brand through same ad. The marketing department in the company, may market different multi brand products just in the way an agency works intended for multiple consumers.

All these features of Multi Manufacturer Strategy can generate financial systems of range. But , it ought to be mentioned here that, regardless of all the features of Multi Brand Strategy, you will find risks too which can problem the success of these kinds of strategy. It has been observed that, in most with the cases, Variable Brand Strategy fail because of poor supervision and incorrect choice of business design The down sides of brand expansion strategies (1). Damage to the original brand graphic. When a specific type of merchandise on the market in front of the status, the brand has become a strong brand, for consumers could have a special photo orientation, or perhaps become a suggestions for this kind of products.

This will be a strong brand file format, as proximate cause of (that is the previous impression about people’s knowing of a more outstanding impact on the role of) the lifestyle, it is possible to play a strong company image combine or damage the position. If the poor use of the brand extension, the first strong brand image showed by the details was worsening. The brand file format of such misconduct, not merely the efficiency, but it may also affect the first strong client brands in the eyes of the specific psychological orientation. (3).

Cixiaobichang easily form the seesaw phenomenon. Every time a name on behalf of two or more of a difference inside the product, buyers will unavoidably lead to unclear understanding of the merchandise. When the extension of top quality products in market competition at the overall superiority, consumers will be the power of the original brand setting transferred to the psychological file format of the brand. As a result, in effect fragile the strength of the brand name advantage. This kind of extension from the strong brands and company competition Cixiaobichang situation improvements, that is, seesaw phenomenon. (4).

Implicate effect. Will crown a strong name brand in other goods, if different products in quality, level on the difference between the poor, which makes the strong brand products and brand extensions have an impact, not only destroyed the extension of brand name name items, but also implicate the strong company. 5). Water down brand identification. When a brand on the market after the success inside the eyes of consumers will have a special image orientation, attention as well focused on the consumer to the product’s function, quality and other qualities on.

If enterprises make use of the same brand launch function, is nearly the same top quality of comparable products in order that consumers fainted the 1st shift, the manufacturer identity will be diluted.

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