The products include locks, steel cupboards, office furniture electronic typewriters, desktop printers, refrigerators, air conditioners etc. Once an umbrella brand becomes popular it bestows the new products brand awareness and instant goodwill. People may stop purchasing products of that brand. The idea is to use the reputation of the established family or company name to launch a new associated product. The brands could belong to one firm or many. This marketing practice differs from in that umbrella branding involves the marketing of similar products, rather than differentiated products, under one brand name. This could include home renovations, new construction or disaster remediation services.
Risks A major risk of utilising umbrella branding is that it may result unsuccessful in promoting new products if the company does not have a strong brand equity. If it's not that great, then certainly, umbrella strategy won't be beneficial for that firm's other products. You would be surprised at how many beverages and products these two companies control. It also happens to be the company name. There are numerous advantages of using umbrella brand like increasing marketability, giving positioning to a product and reducing the cost of creation of a new brand. Are there any other companies you can think of that do a good job of family branding? However, if the brand is not celebrated, customers won't even give those products a second glance.
Branson, with his fingers in many pies, may well be the exception to this rule. Virgin has 33 branches that operate under the Virgin name; however, the practice of umbrella branding is observed in their industry-specific brands e. Godrej Washing Machine Umbrella branding can be effective if a consumer uses information from the promotion of one product to draw conclusions about another product within the same umbrella brand. Examples of this type of umbrella branding include Google, Virgin, and Starbucks. Hence, this concludes the definition of Umbrella Brand along with its overview.
Whan; Milberg, Sandra; Lawson, Robert 1991-09-01. For example, a company may have a strong brand name, yet choose to market some of its products with individual branding. Interestingly, some companies use both family and individual branding. Whether the products may act as substitutes for each other. This is why brand awareness is a key component to any successful marketing strategy.
Umbrella branding truly has the power to increase your marketing reach and consequently product sales. Family branding is where several different products are marketed together, under one larger umbrella brand. There is a downside for companies that use family branding, however. Hyundai stretched its business interest in areas such as microprocessors, telecommunication satellites, cars, commercial vehicles, subways, construction projects, turnkey engineering etc. This type of independent product branding is all well and good for an established company that has a colossal branding budget to split across all products. Local insurance agencies usually work on promoting one line of insurance that is the easiest to capture a client and later to add lines of business to the client portfolio. However weighing out the pros and the cons, my recommendation is to build your marketing strategy on umbrella branding particularly if you are just starting out, have a limited number of products or a restricted branding and marketing budget.
If the company can establish a positive reputation for the umbrella brand, then it requires less effort to create brand appeal for the individual brands. New products inherit all the advantages of the umbrella name. This theory is quite similar to the categorisation theory; however, the schema congruity theory places emphasis on the consumer's past experiences with the brand which is influenced by the surrounding environment. I got a horrible chemical burn from the wash and refused to touch any of their products ever again. Relating the theory to consumer evaluation of products, a consumer already possesses pre-existing schemas from past experiences with certain brands and therefore new products are evaluated based on the existing schema the consumer has with the certain brand. When the company introduces new products or even makes changes to existing products, it can depend on customer loyalty to ensure its market will purchase the new or altered product. This renders the process of launching a new product for the organization easier and can reap benefits because of previous marketing efforts.
If one product in the group becomes a low quality product, it will affect the entire range of products under it. When choosing a marketing strategy that is right for your company it is best to make an informed decision by exploring the different upsides and drawbacks to each strategy. Umbrella branding also known as family branding is a marketing practice involving the use of a single brand name for the sale of two or more related products. Product manufacturers believe that if they highlight quality or popular product parts used in their product it will promote sales. This makes it easy for any organization to launch a new product, and gain benefits due to previous marketing efforts. This diagram summarises the different solutions firms can implement through their brand strategy As the name suggests family or umbrella branding uses one of the family names belonging to the firm. If their washing soap earns good reviews, people are more likely to try other products from that firm under the same umbrella brand.
Disadvantages Umbrella strategy detractors claim it creates significant pitfalls. A dual branding strategy addresses the problem of using only one brand name for a new product launch. This strategy reduces a firm's marketing costs due to the consumer-brand association through which consumers already recognise certain brands, making new products more easily identifiable. Starbucks Corporation Starbucks Corporation operating as Starbucks coffee is an American multinational coffee company, which markets all of their products under their corporate brand name. Car Dealerships The local car dealership promotes a variety of cars under one umbrella brand. Line extension, a common practice for umbrella brands, can cannibalize sales of other products the company produces, yielding little benefit for the investment in product creation.