Nowadays, competition in the market is becoming more and more intense. In order to be invincible in the commercial sea, many companies are making every effort to make a big fuss in marketing. Many of the brand marketing strategies have also been put on the marketing agenda of many companies. Hardware companies are no exception. However, not all companies are called "Procter & Gamble Company". The opposite of a glorious and glorious relationship is the loss. Whether multi-brand marketing can become a golden idea for the development of hardware companies remains to be studied. The phenomenon of erecting the brand Wuzhishan is very interesting: After we used two bottles of Head & Shoulders, we felt that the effect was not good or weary. Is it likely that we will choose Pantene or Rejoice in the next shopping trip? At this time, some people will be proud of themselves, despite the change, because they have the same owner behind - Procter & Gamble. As one of the world's largest daily necessities companies, Procter & Gamble has many well-known brands such as Olay, Head & Shoulders, Pantene, Rejoice, Tide, Pillow, and Pinnacle Pizza. Obviously, P & G has erected the brand Wuzhishan, and it is difficult for consumers to pull out the palm of the Buddha.
Hardware industry also has the same idea. Needless to say, there were a lot of companies that used the multi-brand operation in the hardware lighting industry last year. In order to become a strong brand, Jinhan Lighting has derived three major brands, such as the “Knight†who dominates the modern iron art, the “Piaget†who dominates the project crystal, and the “Dynasty†which dominates the modern crystal lamps. Some of them are leaps and bounds, and are relatively independent. Sub-brands are established for operation, such as Guanhua Lighting invested more than 2 million yuan this year to create energy-saving lamp business division; also in order to improve the end-user demand segmentation, such as Qilang lighting new push two brands "selloni", "Oschlo", marching European lamps and other fields; different from the above three, Yudi home modern low-voltage lamp series products fill gaps in the channel, to walk away from customers, increase profit margins; in the home lighting field is doing well Ottron lighting is not willing to Weakened and launched the crystal lamp of the Palace.
The advantages of multi-brand operation are to integrate market resources to the utmost extent, meet the consumer needs of customers at different levels, occupy a large area and quickly increase sales volume. The opposite of the glory and glory behind the failure of perspective is a loss. In fact, the cases of multi-brand operation failures are also commonplace. New lighting has recently emerged. In the event of a shortage of funds, it has attempted to increase market share by increasing the number of brands, ultimately triggering a crisis in the capital chain.
Home lighting is an industry with low attention and high participation. That is to say, consumers do not pay much attention at the moment, but they will actively intervene when there is demand. At present, there are no fewer than 1,000 companies in the area of ​​home lighting in the ancient town. Yu Huasheng, chairman of Guanhua Lighting, said in an interview earlier that the industry's characteristics have determined that lighting is more of a channel brand. The effectiveness of the VW brand is not obvious enough, and even a company can seize the market with high, medium and low brands. The dilution effect of the brand on high-end brands will not be too great. It should be "out of the mix, always have to return." In fact, as time goes by, multi-brand strategy will gradually show its drawbacks in various industries.
First of all, all brands are operating independently, each doing one thing, causing difficulties in communication between brands, and failing to integrate effectively in R&D, manufacturing, marketing, and services. This inevitably increases costs. Secondly, the original intention of implementing the multi-brand strategy is to subdivide the market, but due to too many brands, the boundaries between brands are blurred, which not only causes consumer confusion, but also causes internal friction among brands. Therefore, there is a lot of risk in multi-brand operations, and companies need to be cautious before they are implemented.