By Anna Ibrahim
300-level student
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| Many brands, one owner |
Wow! I exclaimed in the library.
Realising where I was, I quickly apologised to my neighbour, who was apparently startled by my sudden outburst. He waved it off with a chuckle that quietly whispered, "Happens to the best of us."
Earlier today, I was reading at the library. Scanning through my phone, I came across an article by Kelechi Deca, that talked about "the multi-brand tiered strategy." Fascinated by the concept, I decided to do some more research.
The multi-brand tiered strategy is about using multiple brands or product levels to serve different groups of customers, allowing an organization to expand its reach without forcing every product or service into a single brand identity.
From the consumer's perspective, these brands may appear to compete with one another. In reality, many of them belong to the same parent company. It's a powerful marketing strategy that enables one organisation to capture different segments of the market.
If the only people that purchase a brand's product are wealthy consumers, then they won't be able to make as much profit. So they divide their brand into distinctively different products, thereby serving the need of every class in the society. While expanding their revenue in the process.
Take Nigerian Breweries, for example. It owns several brands that target different market segments, including Star Lager Beer, Heineken, Goldberg Lager, and Maltina. These brands come in different sizes, flavours, and packaging to meet the varying needs and preferences of consumers. There are options for the rich who seek premium luxury products, those who are more price-conscious, and those who prefer non-alcoholic beverages.
To you they're competing brands. But they're all tied to one stream.
Imagine a game of jungle justice. Only here, the King of the jungle is a friend to all, and each mob group, though seemingly against the others, is ultimately working for the King's best interest. The competition is real, but the victory still belongs to the same throne.
As Kelechi Deca aptly puts it, "When you think you're making a very informed choice, the quality of the outcome is a product of the quality of you knowledge."
Some critics argue that strategies like this subtly shape consumer perception, while others simply see them as smart market segmentation. Either way, the next time you find yourself choosing between what seems like competing brands, it might be worth asking a simple question:
Who really owns them?