Corporate Brand Rationalization Information

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When a company has too many brand names in too many markets, they begin to make less and less money, and their attention is divided between a number of different markets and fields. What usually takes place when this happens is called brand rationalization? This is basically just the removal of less successful brands from the lowest grossing markets. The reason companies open up more brands can vary. From an attempt to take over a certain industry by saturating it with their products, to simply accumulating more shelve space. When a company starts making less money, the first place they look is where to cut costs, and often find it in rationalizing brands.


 




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