Multiproduct Strategy Example

Bugatti has entered the world of car-related fashion. Bugatti is coming apart of a growing group of high quality auto makers determined to improve the look of their brands. Bugatti is owned by Germany's Volkswagen. The auto maker planed an international chain of retail stores to sell its limited edition, just launched Bugatti accessories and clothing to add to a small quantity of merchandise already on sale. They want to attract new customers, especially women, by selling brand named watches, handbags, clothing, and other accessories. Their handbags, clothing and accessories will be at the same level of their cars, high price, high quality and exclusive.

Bugatti, launching its fashion merchandise illustrates multiproduct strategy. Multiproduct strategy is a plan the companies use to compete in different product markets, which allows them to become more diversified. The main reason a firm may use multiproduct strategies is to improve their performance. Bugatti is using this strategy for the same reason, because they are trying to enhance their brand and attract new customers. Enhancing their brand and attracting new customers will improve their performance. Firms use multiproduct strategy to reduce the risk of being involved in a single product line and to extend the companies brand into different product areas.