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Advantages and Disadvantages of Umbrella Brands

Umbrella-Brands

This type of branding encompasses several products under the company’s name, which can give the firm new channels of communication with consumers.

In marketing, there is a constant search for the.
The name of a product remains remembered by the consumer and becomes top of mind
as “the pritt” or “the kleenex”, but there are times when the name of the
The company has much greater resonance than any of its products. Those are
The umbrella brands.

Also known as family branding, this type of names are those names that encompass variously
products; they are generally the leading brand of the firm and protect
Lesser-known products, hence their name. For example. Sony is the best-known name but includes brands such
As Vaio, Bravia or Cybershot.

It is because consumers have a high relationship
with the primary name of the company, so the manufacturer can introduce
new products that are related to existing product lines,
The reputation of the primary name shelters it.

This relationship is of personal benefit because of the ” sub-brands. ”
Give the main brand new communication channels. For example, Sony
can speak to a younger and more dynamic audience through the Play
Station name.

The key for these relationships to be successful is that the
goods or services that remain marketed under a common name have some kind
Of connection. It gives
junior brands a single voice and more
Significance than they would have if they remained handled as individual products.

It occurs when the company has a strong
corporate image and its products are not very different from those of the
competition, so there
Is generally no need to invest too much in promoting sub-brands.

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The Most Seen

There are several examples of these brands on the market, such as
Apple, Kellog’s, Virgin and Nike.

Advantages and Disadvantages

Like any marketing strategy, the use of
umbrella brands have qualities for and against since they cannot remain applied to
All or to all products or all companies.
MarketingWeek.UK magazine lists the pros and cons of this model.

Its advantages remain based on the fact that each product contributes to
the overall value of the brand, like sportswear, does with Nike; the
a leading brand must be recognized in the products as it generates trust, respect
And loyalty. Also, the strategies and resources of. Marketing can be
shared and the principal name can benefit from the different
Communication channels that its sub-brands make to it.

In addition, when a
the person already trusts the name of the mother brand, to want to try other of
Its variants, as it happens with Apple products.

On the contrary, detractors of umbrella branding
point out that one of its main disadvantages is that bad publicity for a
a single product can affect the leading brand and the other products it
Intends.

They also ensure that these are cases in which the ego of
the company exceeds the “normal” when betting on the success of each of its
Products. In addition, they highlight that in
real-life when making a
purchase, people are more concerned with acquiring products that meet their
Brand name.

Before implementing this strategy, think about how much
you can bet the performance of your products on your company name and how
Mature your market is.

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