Umbrella Brand Examples

Branding – the process is extremely complicated and expensive. First, a creative studio comes up with its concept. Then the ad agency creates ads that invented “outdoor advertising” and plans to BTL-actions. Then comes the turn to media buyers, who are developing an advertising campaign and buy it at the time on radio and television, the band in print periodicals, and billboards. As the supporting forces here are the PR and brand managers who are trying to convey the “message of the” brand to a targeted audience.

It goes without saying that all companies from time to time want to save energy and money and use the popularity of an already well-promoted brand to bring to market a new product. Brands, combining under one name several different products, called “umbrella”. The effectiveness of this method of advertising communication says creative director of the Moscow office of Interbrand Zintzmeyer & Lux AG Edwin Schmidheiny. He opposes the managing partner BrandLab Moscow Alexander Eremenko, who believes monobrendy is more effective.

Edwin Schmidheiny, Interbrand Zintzmeyer & Lux AG: “Umbrella” strategy is quite suitable for creating a strong brand. The product can successfully move as under the wing of an existing brand, and be created especially for him. It all depends on the path chosen by your marketing department. Monolithic corporate brands are well-suited, for example, for companies that produce commodities. When the firm has a strong corporate brand and its products are not much different from competitors’ products, there is usually no need to invest in the sub-brands.

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Umbrella brand helps bring to market new products and services, and those, in turn, reinforce his position. Such an approach requires a consistent and extremely balanced communications strategy, because of the failure of each product as reflected in people’s perception of an umbrella brand, as well as success. As an example of a strong corporate brand can be called Deutsche Telekom – one of the world’s largest telecommunications companies. At umbrella brands many advantages. For example, a strong “umbrella” to optimize the marketing budget.

The cost of developing and maintaining a brand is, of course, lower than a few. The launch of new sub-brand under the umbrella a much simpler task than creating an independent brand: there is no need to fight for recognition. Nevertheless, it is important to make sure that the quality of new products or service quality in line with others, presented under a common brand. Of course, the umbrella brand characterized by its own problems. One of them is the fact that such shirokonapravlenny brand appeals to different target groups.

He does not always correspond to their contradictory expectations. After all, the exact “hit” in the audience – is the prerogative of a single brand. The integration of the existing independent brand umbrella – also not the easiest task. To do this you must change its characteristics so that they are more in harmony with the characteristics of a common brand, and all its sub-brands. To separate the brand from an umbrella in their own right, by contrast, get rid of inherited from “parent” commonplaces, which hinder the creation of a unique brand image in the minds of consumers. Alexander Eremenko, BrandLab Moscow: “Umbrella architecture helps companies focus their efforts and money on promoting one brand. Every new product launch is guaranteed to receive a share of consumers who are loyal to the brand umbrella. Over time, the value of such advertising is accumulated, which turns it into a true giant like Nestle, Samsung and L `Oreal. However, all this grace ends when at least one of being “under the umbrella of” foods seriously “flies” in the market. In this case, it automatically pulls down a brand for all its grocery lines.

Mitsubishi’s withering empire began with the moment when it was first convicted of concealing defects in several car models. After that, sales of Concern in Japan fell for the entire range of its products, not only for the unfortunate car model. Pluses monobrendov eventually become apparent to the owners of umbrella brands, and the conclusions to the market sub-brands. The point here is the psychology of consumers who are more likely to trust “the brand-expert” in its category. Moreover, sub-brands are often outgrown parent brands.

For example, few people can call the manufacturer to move drugs Viagra, Pfizer, although the logo is placed at each of its packagings. With regard to a number of brands, today is difficult to determine what dominates – the parent brand or sub-brand. Recall, for example, “Wimm-Bill-Dann and J7,« Red October “and” Alenka “. Even similar products is not always possible to combine under one roof. ” So, recently BrandLab Research conducted a study on the compatibility in consumers’ minds several dairy categories within the customer’s brand (cottage cheese, sour cream, cottage cheese, cottage cheese desserts and butter).

The obtained results helped to explain to the client why the sale of his butter and cheese dessert greatly lagged behind the sales of other categories. It turned out that people do not believe these products are related to cottage cheese or sour cream, and therefore the total milk brand just introduced them astray. This also explains the low sales of insurance and retirement services in offices specializing in retail banking. Despite the fact that they are financial in nature, the consumer is not an association of the bank with insurance. He trusts the bank to keep its money, but do not trust to insure his life. “