Abstract By applying the theory of brand economics and introducing category similarity coefficient, the authors build the model of single brand strategy mechanism and prove that manufacturers implementing single brand strategy will improve their own market demand and profits when they increase the number of categories. However, manufacturers can not increase the number of categories unlimitedly because of choice cost and increasing the number of categories unlimitedly will be constrainted by choice cost. On this basis, the authors propose the solution to the restrictions of market demand growth of single brand manufacturers through multi brand strategy, and demonstrate that implementing multi brand strategy is feasible under the condition of opposite categories. With the indicators of the degree of category similarity and brand strategy, the authors construct a two dimensional model of multi brand strategy implementation and propose the conditions for manufacturers implementing single brand and multi brand strategy and the corresponding countermeasures and suggestions.
2011, Vol. 28 
[an error occurred while processing this directive] | [an error occurred while processing this directive]
