Multi-Brand Strategy with Cannibalization Effect – A Case of Wrigley in Taiwan Gum Market

• Main Authors: Pei-Tsen Chou, 周姵岑
• Other Authors: 連勇智
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/9ayn2k

碩士 === 國立臺灣大學 === 國際企業學研究所 === 106 === In the pursuit of growth and expansion, enterprises usually adopt the “Multi-Brand Strategy” by simultaneously operating two (or more) independent and competing brands in similar product categories. Through the unique positioning and differentiation of brands, enterprises attract and meet diversified needs and motivations of consumers in the target market segment in order to increase overall sales revenue and market share. However, if the brand positioning and market segmentation between brands are not clear, or the similarity and substitution of product attributes are high, the brand not only do not seize the existing consumers of competitors, attract other potential consumers or generate synergy, but lead to competition between products of the same brand or brands of the same company resulting in reduction in sales volume, sales revenue, or market share of existing brands or products, which is called the "Cannibalization Effect". This thesis takes the three major gum brands Airwaves, Extra and Doublemint of the leading manufacturers of Taiwanese chewing gum industry, Wrigley, as an example to explore whether brands have a mutual cannibalization effect under the implementation of their multi-brand strategy. It indicates enterprises should understand consumers'' usage scenarios and motivations, establish clear brand positioning and product appeals to meet the diversified needs of different market segments, and measure the most appropriate product mix through category management in order to reduce the negative cannibalization effect on the enterprise itself.