Definition of multibrand strategy

sale of two or more competing brands by the same marketer. For example, the various dishwashing liquids made by Procter & Gamble to appeal to different segments of the market for that product. Marketers who use a multibrand strategy acquire greater market share than they could with fewer brands, even though one of their brands may somewhat cannibalize another. Multiple brands also enable marketers to acquire more shelf space and to respond to consumer demand for something new. In some companies, competition between their brand managers is believed to hone their skills. The key is to recognize the optimal number of brands that will deliver more benefit than it costs. There are diminishing returns as the number of brands increase. Cost efficiencies due to economies of scale decrease as production volumes are spread across a greater number of brands, and brand cannibalization increases.