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Sagot :
Answer:
Companies sell multiple product lines under their various brand names, seeking to distinguish them from each other for better usability for consumers.
Explanation:
- Cannibalism help a company retain its share in the pie. Given the plethora of rivals (especially in the FMCG market), a company would rather have its own brands eat into each others' market share rather than have a competitor's brand do it. So even though each individual brand may have a lesser share of the market, the aggregate share of all the brands under the parent company may increase.
- Different brands help to capture different market segments as each brand is associated with a certain image. Compare two brands like Fastrack and Titan (both from the Tata stable): Fastrack tries to position itself as something trendy and rebellious- targeting the youth. Whereas, Titan stands for something traditional and dependable - targeting people with conventional ideas. Now imagine Titan trying to market trendy products and running ads for the same- it will lead to a conflict of images and take a toll on the its brand.
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