brand proliferation

brand proliferation

the availability in a market of an extensive number of similar brands reflecting the MARKET SEGMENTATION policies of suppliers and the need to offer a comprehensive range of brands to compete against rivals. By offering a number of brands, suppliers may be able to expand their sales. However, they have to be mindful of the extra production and marketing costs this involves and the particular danger of cannibalizing' their own sales (i.e. an increase in the sales of one particular brand may be largely at the expense of their other brands rather than taking away sales from rivals' brands). From a wider public interest perspective, brand proliferation is sometimes considered objectionable by the COMPETITION POLICY authorities, because, while ostensibly serving to increase consumer choice, the ‘saturation’ of a market by established firms' brands may result in ‘excessive’ advertising and act as a BARRIER TO ENTRY to new firms. See PRODUCT DIFFERENTIATION, PRODUCT RANGE, PRODUCT VARIETY.

brand proliferation

an increase in the number of brands of a particular product, each additional brand being very similar to those already available. Brand proliferation occurs mainly in oligopolistic markets (see OLIGOPOLY) where competitive rivalry is centred on PRODUCT-DIFFERENTIATION strategies, and is especially deployed as a means of MARKET SEGMENTATION. In the THEORY OF MARKETS, excessive brand proliferation is generally considered to be against consumers’ interests because it tends to result in higher prices by increasing total ADVERTISING and sales promotional expenses.
References in periodicals archive ?
Wearables has also been confirmed as the fourth spotlight category for DISTREE EMEA 2016, reflecting brand proliferation in the sector, fast-growing consumer demand and a desire from channel partners to meet more brands active in this sector.
Today's store brand proliferation -- an overabundance of brands on the part of certain retailers -- is the result of private label's starting off on the wrong foot back in the 1970s, says Ben Ball, senior vice president of Northbrook, Ill.
Brand proliferation is consequently high, but few products attain lasting success.
This has led to massive SKU and brand proliferation, and CPG companies are facing accelerated time-to-market to compete: he says.
In a period of brand proliferation, what we bring to the party is the ability to help the retailer optimize their sets, using the momentum of craft to make the sandbox bigger.
If brand proliferation and resulting competition don't convince you of the need to plan, consider the following additional challenges: distributor consolidation trends, rising costs, and the effect of economic cycles.
Due to house brand proliferation and pricing, a serious demise of known brands has occurred in the lower-cost 60 percent of the business.
Expectations were that these constituted just the beginning of brand proliferation for the segment.
The CEO forbids brand proliferation for the sake of brand proliferation, as he says Virgin has done with ventures like Virgin Bride, a bridal shop.
As brand proliferation in the tobacco category accelerates, retailers are grappling with merchandising and promotional issues.
The authors of Store Wars chronicle the concepts of the evolution of marketing orientation and the creation of sustainable advantage in consumer markets; they then go on to deal, in quite some detail, with brand proliferation and finally they provide a concise examination of hypersegmentation in the first section of the book.