How best to manage multiple brands?

Many companies own multiple brands, and while this has undoubted advantages, there are pitfalls to be avoided.

How best to manage multiple brands?

It is increasingly usual for companies to own more than one brand in a category. This offers the potential advantages of spreading risk, greater market share, and commensurate profit levels; but managing these brands carefully is essential.

CANNIBALIZATION

The nightmare situation of multiple brand ownership is cannibalization. In the following example the client owned two brands in the ice cream market. Brand A was a well-established mainstream brand, while Brand B was an inspirational brand. Advertising for Brand B lead to a growth in consumption of Brand B, but at the expense of Brand...

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