Brands: GM Rethinking Multiple Brand Strategy

July 7, 2008 by anne

Offering multiple brands in the same market, but to different target segments, can help a company maximize share. That's been GM’s strategy for years, but the Wall Street Journal reports the company may discontinue some of its brands, in spite of the belief that more brands equals broader market share.  And helps them fight Toyota Motor Corp.

Cutting some of its eight brands, such as Saab, which, according to the article, sells just 35,000 cars per year, or Saturn, which reportedly has never been profitable, could help the company redeploy critical resources in a difficult market. But it most certainly will also result in a loss of market share since not all of a discontinued brand’s customers will necessarily migrate to another GM brand.

Please don't cut the Corvette.

Source:
GM Weighs More Layoffs, Sale of Brands, Wall Street Journal - 7/7/08

Image Credit:
Chevrolet.com

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