Final answer:
True. Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share.
Step-by-step explanation:
Multibranding is a strategy where a company offers multiple brands within the same product category. Each brand targets a specific customer segment with unique features, positioning, and messaging. This allows the company to cater to diverse consumer preferences, increase visibility and presence on store shelves, and gain a larger market share.
For example, a company that sells personal care products may have one brand targeted towards environmentally conscious customers with organic and eco-friendly formulations, while another brand may focus on luxury and premium products for customers seeking high-end and innovative solutions. By offering these different brands, the company can effectively reach and appeal to different customer segments, ultimately leading to a larger market share.