Consumers today have been spoilt for choice with the number of brands that compete in the same segment.
We’ve all heard of infamous brand wars.
Coca-Cola vs Pepsi
Nike vs Adidas
BMW vs Mercedes.
But while we look at the brand names during a purchase what we fail to realize is that the bigger umbrella housing most of them are the same.
It’s a typical class & mass approach. While companies run established brands to cater to a premium segment, they hate losing out on price sensitive customers.
So, what then?
Well, they acquire/ create sister brands to ensure they still have the bigger piece of the pie.
Here are some revelations
+ Adidas & Reebok – Same holding company while Adidas caters to the classes Reebok caters to the masses
+ L’Oreal & Kerastase – Highly competitive brands in the hair care range with Karastase packaged to appeal to a premium consumer profile
+ Corona & Budweiser – Both belong to AB InBev which actually have a host of other beers in their portfolio
The best example of all ‘LVMH’, a company housing over 75 aspirational brands.
Thought Dior was better than Givenchy? Think again!