Monday, September 9, 2013

Multi Brand Multi Product ....Shareholders Value

In my research I find that there are multi products and multi brand management which leads to an complex process for the brand management. Gone are the days when one company used to deal with only one product. Each brand fights for its existence and that’s too simultaneously. Brand extension is a common phenomenon where numbers of products are launched under the same company. Even merger and acquisition leads to multiple brands having presence in multiple geography.

In my research I have found that the question of how many brands should be kept in each market has become a primary concern of all senior marketing managers. Now after 2008 recession products are being reduced and core values are being concentrated in developed economies where as in emerging economies product baskets are being widened. Industrial production has also become concentrated. International competition has put the emphasis on high productivity and low costs and has led to the regrouping of production units and research and development activities.  In emerging economies like India and China where huge population is yet to cover with minimum living means multi product business classified aligning with the per capita buying consumer works wonderfully.

 Multi brands success depends upon the geography where economic factors need to be accounted before getting the brand launch. Recession of 2008 have turned the market upside down and hence brand managers needs to do little amount of research before exploring into markets. The luxury goods industry has long been targeting the world market, as indeed have most industrial companies. It quite hard to decide how many brands to be kept on the shelves and how many to be removed. Every market can be segmented, by product, customer expectation or type of clientele.


In my research I find that often brands gets destroyed when reverse engineering is being executed and copy of the similar branded products are being replaced with duplicates. This is one of the common practices across world and India might be the leader. Hence protecting the intellectual properties is an prime activity of brand managers. Where innovation is the mother of the brand management their we need extensive intellectual property protection. For example in mobile market of India we find extensive replicated products of different brands which raises the voice of intellectual property rights. Achieving super profits from a branded strategy is one of the key roles of the brand managers. We often find mistake of pricing our products over the non branded products just to catch and figure out that the price of branded product is the premium which the buyers pay. 

But the right strategy for achieving super profits and growth in countries like India where price is the value decision maker. The best strategy is to sell the branded products below the unbranded products and derive super profits riding on the wheels of volume. This type of strategy is best suited for countries like India and China or emerging economies. Extensive brand related to strategy should be executed to decide the optimal pricing and volume mix of each brand where multi brand products are being dealt.  Selling equal to the price of branded products can only work wonders where volume and value proposition is decided based on price and the market is fragmented. This is how the brand managers can be able to increase the shareholders value through multi brand products. 

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