DEFINITION• Umbrella brands are brand names that are utilized by a range of different but related products. Sometimes referred to as family branding.• An umbrella branding strategy, is a marketing practice that involves marketing many related products under a single brand name.
What is umbrella branding ?• When a group of products are given the same brand name• It becomes a case of family brand/umbrella brand.• A company may resort to different branding approaches for different product lines. Conti….
What is umbrella branding ? …continued• Umbrella branding involves creating huge brand equity for a single brand.• Umbrella branding is also known as family branding. It is very common to find umbrella branding in FMCG products.
Basic idea of umbrella branding• Enhance marketability of product.• The concept conveyed to consumers is - any product that carries the brand name is produced using the same high standards of quality.• Umbrella Branding only works when the company has a line of very similar products.• The master brand has to be acknowledged on products because it commands trust, respect & loyalty
AMUL- Test of India cover.. ofumbrella• AMUL Indias most successful dairy product company follows umbrella branding.• Compared the umbrella brand and individual brands to an Indian family.• Amul created its brand equity by the help of UB.• Where in umbrella brands - like the Indian family, the father is the head, looking over the children.• When they grow up and become independent, they hold the umbrella for the family.• Individual brands on the other hand are like a western family, who grow up fast and leave the father behind.
Conti….• Where in umbrella brands - like the Indian family, the father is the head, looking over the children.• When they grow up and become independent, they hold the umbrella for the family.• Individual brands on the other hand are like a western family, who grow up fast and leave the father behind.
• Amul’s advertising and marketing spend has never exceeded 1% of its revenues.• Despite a limited budget, Amul’s the Taste of India campaign—have always managed to evoke a larger-than-life brand feel.• Customer knows Amul as a quality provider so they believes all products of Amul as a quality product.
NIVEA• NIVEA cosmetics brand has a presence in huge number of product categories and countries• Queen of Mega Brands’ because 14 products and serves 150 countries.• According to analysts, there was the 4.4% increase in the companys revenues (€ 4.74 billion) and 10.7% increase in after-tax profit (€ 290 million) for the year 2002.
• Never tried to disturb the umbrella branding of Nivea and got fruitful results.• It is easy for Nivea now to launch new products as customer got idea about company and its products.• When people see a common identity they will want to try other variants of same identity because of the umbrella brand.
Pros• Brand image of parent brand act as Differentiating factor for product in extremely competitive market.• Extra cost of Brand creation is not required.• Umbrella branding help to create dependent perception about product as parent Brand.• Umbrella branding helps to give positioning to product.• Advertising and promotional efforts should be combined for all the products falling under family brand.• New product launch become easier and cheaper.• New product find ready recognition and market set up.
Cons• Unique identity of new product faces problem.• If one product fail whole brand faces failure.
Umbrella Branding Customer’sViewpoint.• When customer goes for shopping he usually looks for his favorite brands. DO they launched something new?• If customer gets positive experience he will tend to become loyal customer.• So usually he looks product of same brand or logo to make further shopping.
• If customer get negative experience from any of those products he can avoid all brand altogether.• Just being part of any good parent brand isn’t condition to satisfy customer.• Ex products of coca cola makes their individual advertisement for each products.People care more about products that meet their specific needs thana brand
Individual vs. Umbrella Branding.Individual branding Umbrella BrandingCOST OF PROMOTION IS HIGHER LESS PRICEPRODUCTS HAS UNIQUE IMAGE IMAGE IS REFLECTION OF PARENT BRANDLESS STRESS ON QUALITY STRESS IS MUCH HIGHERCAN’T WORK TILL PRODUCT IS CAN BE THE WAY OUT TO LAUNCHWELL IN MIND OF CUSTOMER OR RELAUNCH OF PRODUCTRISK IS MORE TO LAUNCH NEW EASY TO LAUNCH NEW PRODUCTPRODUCT
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