Manag., December-2019 – Q62
- Option : C
- Explanation : Brand proliferation is the opposite of brand extension and occurs when new products are given new brand names. This is essentially the basic individual branding strategy already discussed. Brand proliferation can help to expand both the market and the firm’s market share by increasing the variety offered to the customer. This can be used where little or no brand loyalty is noted, the rationale being to run a large number of brands and so pick up buyers who are constantly changing brands. This is called a multi-branding. However, if the products are insufficiently differentiated, it can lead to their competing with one another, an effect know n as brand cannibalization.
