What's the benefits of creating 2 different brands selling the same product/service?

[mikewelsh]

What's the benefits of creating 2 different brands selling the same product/service? I've seen companies doing this. Why?

 

[Dave Shaw]

Different brands attract different types of people - so the companies are expanding their potential customer base. It is also a numbers game - people like to compare companies so if they look at say 5 websites and you own 2 of them your chances of getting the business are twice as high than if you had just 1.

 

[Stephen Berry]

market segmentation

example - diet coke for girlies; coke zero for tough men who are too macho to diet.

 

[Business Spy]

Hi,

It's basically about appealing to the niche areas of your market.

Supermarkets do it all the time with the Finest / Best and Value / Basic ranges. It's appealing to a segment of their market whilst still ultimately upholding their crucial brand values. It's sub branding.

Sometimes large companies take this a step further into having different specific brands for each market - for example, Costa is owned by McDonalds I believe but they are clearly catering for different markets. It allows them to take a larger segment of the market chunk by catering to different markets.

Hope that helps!

 

[flamingphoenix]

You can cater as mentioned for 2 differing audiences, also if you are creating an online site, it's possible to have more presence within the search engines with 2 shops.

 

[Chris Ashdown]

We do it to make the choice simpler for customers to find workwear that's relevent for them without wading through all the other workwear. that is chefs have their own site, nurses there own etc and one large site that offers the whole selection

Goods are the same price etc on all sites

 

[adventurelife]

What's the benefits of creating 2 different brands selling the same product/service? I've seen companies doing this. Why?

I took the view a long time ago that the internet would become my main source of business and therefore I want to be found by potential clients so although what we do is very similar I have several different names of companies to drive business. That way we are better positioned to dominate our sector.

However, I am at present considering branding for different reasons that may make that strategy change going forward.