What is multiproduct branding? What are its advantages? Disadvantages?

Question

What will be an ideal response?

Answer 1

Multiproduct branding occurs when a company uses one brand name for all its products. This approach is often referred to as a corporate or family branding strategy when the company's trade name is used. There are several advantages. Consumers who have had a good experience with one product in the line may also carry a favorable attitude toward other products in the line. This approach can result in lower advertising and promotion costs because the same brand name is used on all products within the line, raising the level of brand awareness. A new product is viewed as an extension of an existing line rather than a totally new item. The disadvantages of multiproduct branding are that using a product line extension strategy within multiproduct branding may result in sales at the expense of sales of other items in the company's product line. Also, too many uses for one brand name in a brand extension strategy can dilute the meaning of the brand among consumers.