Is it worth it for a business to use a unified brand strategy?

As two levels of economies of scale, factory economies of scale and enterprise economies of scale have different meanings and functions. The scale economy of the factory mainly refers to the ability to adopt more advanced technology, larger and more specialized equipment due to mass production, and realize standardization, specialization and simplification of operations, thereby greatly reducing the equipment investment per unit of product and saving a lot of raw materials and energy. The scale economy of the enterprise mainly refers to the enlargement of the scale of the enterprise so that the operation of the enterprise has greater flexibility, it is possible to withstand temporary losses, and the ability to develop products with high risk but at the same time greater profitability.

Factories have strong economies of scale, while enterprises have much smaller economies of scale. Generally speaking, the expansion of the size of the factory leads to the emergence of economies of scale, and the mere expansion of the size of the enterprise should be taken with caution. However, the pursuit of personality development is also one of the main trends of consumers, so enterprises must pay attention to personalization while focusing on standardization and specialization.

This is reflected in the scale of the enterprise, that is, to properly deal with the relationship between the scale of the enterprise and the scale of the factory, and to be particularly accurate when deciding the brand distribution strategy of the enterprise. Generally speaking, a unified brand strategy can fully reflect the advantages of factory economies of scale, which is conducive to the cohesion of enterprise strength. At present, China's enterprises are generally small in scale and unstable in the industry, so it is a wise choice to use a unified brand strategy to take the road of factory scale.

When the enterprise has enough strength to face a large number of market segments of consumers, the enterprise can take the road of enterprise scale, so that the product is diversified and personalized, so as to meet the needs of more consumers, but also make the enterprise occupy more market share, at this time should use the multi-brand strategy (name + individual brand strategy is also more common at this time), to achieve a broader market goal.

There is no worthiness or not, and it should be considered according to many factors such as the company's industry, product nature, scale, and management level.

Summary. Hello! What is a multi-brand strategy for a business is that a multi-brand strategy is a brand strategy that consciously uses multiple brands in the same product category:

The purpose is to deeply segment the market and fully occupy the needs of a variety of categories. It can help the company's products occupy more distributor shelves, help to establish a flank brand to prevent the first war from impacting the main brand, but this means higher costs, a smaller market share of a single brand, and may cause internal competition between the company's brands.

Hello! What is the multi-brand strategy of the enterprise is that the multi-brand strategy is the brand strategy of consciously using multiple brands in the same product category: the purpose of the balance is to deeply segment the market and fully occupy the needs of multiple categories.

It can help the company's products occupy more distributor shelves, help to establish a flank brand to prevent the impact of the main brand, but this means higher costs, a small market share of a single brand, and may cause internal competition between the company's brands.

Expansion: Multiple brands can better position market segments with different interests, emphasize the characteristics of each brand, and attract consumer groups with different concessions, so as to occupy more market segments. In the specific implementation process, the multi-brand strategy can be divided into three categories, such as individual brand strategy, classified brand strategy, enterprise name and individual brand strategy.