Which of the following is a potential drawback of multibranding?
A)The company's resources may be spread over too many brands.
B)Different product features can appeal to consumers with different buying motives.
C)An overextended brand name might lose its specific meaning for consumers.
D)The company can occupy more retail shelf space.
E)Consumers may become confused about the image of the main brand.

Question

Quizplus · Accepted Answer

Multibranding involves launching several different brands in a single product category. This strategy can be costly and resource-intensive for the company, as it has to allocate resources for multiple brands simultaneously. This can lead to a situation where the company's resources are spread too thin, which can hamper its ability to support each individual brand adequately. Consequently, the effectiveness of marketing efforts may reduce, and the company may not be able to leverage economies of scale. Thus, a potential drawback of multibranding is that it can result in the company's resources being spread over too many brands.

Which of the Following Is a Potential Drawback of Multibranding