This is a concept where a company can duplicate a brand and produce a series of near-identical copies (on the back-end), however, to the consumer market, it appears as "more options" distinct from one another, thus if executed properly, it should increase the overall revenue, market share and decrease competition. Because you'll be competing with yourself. This is especially easy for online brands, since duplicating digitally is less investment, research, and effort than creating 10-20 physical storefronts for example.
This strategy can be a powerful way to rapidly expand the company's footprint, and effectively suffocate competition.
Here are some ways in which multiplying brands under different names can be beneficial for businesses:
- Expanded reach:
By multiplying their brands under different names, companies can expand their reach and increase their visibility in the marketplace. This can help them tap into new markets and attract new customers, while also reinforcing their presence in existing markets.
- Consolidation of consumer market:
By creating multiple brands that seem to be in competition with each other, companies can effectively consolidate the consumer market. This strategy can help them suffocate competition and gain a larger share of the market. This is particularly effective in industries where there are a limited number of players.
- Increased revenue:
By expanding their reach and consolidating the consumer market, companies can increase their revenue and profitability. This can be achieved through the increased sales volume resulting from the creation of multiple brands, as well as the ability to charge premium prices for their products and services.
- Diversification of offerings:
Multiplying brands can also allow companies to diversify their offerings. By creating brands that specialize in different product or service categories, companies can appeal to a broader range of customers and capture more market share.
- Brand differentiation:
Multiplying brands can also be a way to differentiate brands within the same company. This can be particularly effective in industries where the products or services offered by different brands are similar. By creating separate brands with unique positioning and marketing strategies, companies can effectively differentiate their offerings and appeal to different segments of the market.
