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Utility of umbrella branding

Date: 06/06/2006 | Category: Business | Author: arvind

Branding has become one of the most critical areas of marketing. All the marketing efforts whether it be large or small businesses, are directed towards making maximum utilization of brands available under the roof. Gone are the days when factories used to be sold and purchased. Today’s marketing gurus are more interested in buying out brands, and not factories where those products are manufactured. 

There are many branding strategies employed by organizations. Important among these strategies is umbrella branding (often called sub branding). Umbrella branding is a combination of parent brand and a product specific brand. For example, John Smith Corp sells X brand of soap and Y brand of shampoo. Using umbrella branding the communication will be John Smith’s X or John Smith’s Y brands. Alternatively these will be JSC X or JSC Y brands. 

Major advantage drawn from such branding is the promotion of parent brand. In this case, the parent brand is John Smith or JSC. Once the parent brand is well established in the market place, it becomes easier for the other brands (A, B or C) to become successful in the market. Small business owner can draw a great lesson from here. All of your communication must include parent brand name so as to facilitate smoother launch of future brands.

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