Which of the following is NOT an advantage that a multibrand strategy offers the PT Soap Company?

Which of the following is NOT an advantage that a multibrand strategy offers the PT Soap Company?



(A) A multibrand strategy creates internal competition among PT's brand managers.
(B) By using a multibrand strategy, PT's brands take sales away from one another.
(C) A multibrand strategy means that PT's competitors have limited shelf space for their products.
(D) By having a number of brands, PT has brands for a variety of price and quality levels.
(E) By having multibrands, PT will attract or keep more consumers who like to try different products.


Answer: The downside to a multibrand strategy is that some brands eat into the sales for a company's other brands, so choice B is the correct answer.


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