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Single n umbrella branding

The relevance of single versus umbrella branding in the context of companies like ITC and Tata Motors

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Single n umbrella branding

  1. 1. Presentation bySARAH MARY MATHEWSem 2, MBAMACFAST, TiruvallaKerala, India
  2. 2. Individual brandingIndividual branding, also called multi branding, is the marketingstrategy of giving each product in a product portfolio its ownunique brand name.Individual branding is where each product is promoted as its ownseparate entity by using different brand names for differentproducts
  3. 3. Advantages of Individual BrandingEach product has its own unique imageIt facilitates the positioning process i.e., one can position all productsdifferently without making trade-offs.It works best when your company has several unrelated productsThe company does not tie its reputation to the product-If the product fails or appears to have low quality, the company’s name orimage is not hurt.Additionally the term individual branding is used for keeping the brandsof a company unchanged after a merger and acquisition
  4. 4. Drawbacks of Individual Branding split marketssplit effortspossibility of imbalance within your company.
  5. 5. ‘One brand all products’- umbrella brandingAn umbrella brand can be referred to as a brand when a group ofproducts possess the same brand name which is known as a family brandor an umbrella brand. Different products having different brand imagesare put together under one major brand or parent brand and are marketedby the firmUmbrella branding uses a single brand name, and in some cases samelogo, for different products.Umbrella Brand StrategyThe same brand supports several products in different markets. Each ofthem has its own advertising tool and its own communicationsThe main advantage of umbrella strategy is the capitalization on onesingle name and economies of scale on an international level
  6. 6. Umbrella Branding benefits or advantagesThey offer sale across many categories and marketsFor all the different products and services, advertising, promotiontools can be combined.Its a motivator for employeesBenefits from economies of scale and product range efficiencyPromotion is very cheap and easy for products falling under umbrellabranding. New products can be launched with limited spendingLaunching of a new product under umbrella gains recognition easilyas it is introduced in the market which has already accepted the brandimage.
  7. 7. Disadvantages of Umbrella Branding•Quality of brands within umbrella brand may vary•Impact of bad publicity can damage the umbrella brand•Easy to over extend the umbrella brand•More difficult to achieve a distinct brand identity
  8. 8. SINGLE VS. UMBRELLA BRANDINGBrands are not just labels to discriminate product offerings in the market.But today, brands represent the intangible value that is created by the firmthrough the marketing effort. This results in preference for the brand andwillingness to pay a premium.There are cases where the umbrella brand has added value. Such as in case ofJohnson n Johnson.But this need not be the case always.If the brand is diluted as a result of the product association, or the brand hasspecific meanings that do not rhyme well with the product category, umbrellabranding is not good strategy.Eg: A ‘Harpic’ chocolate or ‘Dettol’ ice cream may never be attempted.
  9. 9. Since brands are expensive to create and maintain, it makes sensefor a firm to leverage the strength of an already established brandacross product categories.Managing several independent brands as separate entities withoutcannibalizing each other is not easy.Many firms can find the challenge of managing multiple brandsintimidating.Therefore, the trend towards umbrella brands is inescapable andhas many advantages
  10. 10. Purpose of umbrella branding1. It is easy to identify the new brand in the company under umbrellabranding by the customers.2. It gives uniformity to all the brands falling under it may be through onedesignated approach of advertising, promotion, packing etc.3. It is a very economical strategy to be implemented.4. It is probably the best way to enter into new segments or introduce a newproduct to market.5. It will be very profitable for firms which are having different quality ofbrands and different images of brands if followed properly.6. It is the branding strategy that gives the probability of a brand extensionfor every possible quality of profile.This being the case, the drawbacks of family marketing only occur if oneproducts standards drop or are not maintained, as this reflects negatively onthe group as a whole.
  11. 11. ITCFrom a leading cigarette manufacturer to an umbrella group that offers adiversified product mixWhy they did this ?•Huge Imposition of Govt. on Cigarette Market•To reduce dependence on cigarette businessHow they did ?•The Company’s relentless efforts to create value throughInternational quality products.•Significant investments in technology and product development•Strong portfolio of brands have enabled it to maintain itsleadership position in terms of market standing and share.•Customization of product•Brand image enhancement
  12. 12. 1910ITC was incorporated under the name Imperial Tobacco Companyof India Limited.1970The name of the Company was changed from Imperial TobaccoCompany of India Limited to India Tobacco Company Limited1974 The name was again changed to I.T.C. Limited.Thus removing the full stops the Companys name has caused for itsdiversification into different range of products
  13. 13. The Companys multi-business portfolio encompassing awide range of businesses• Foods, Personal Care, Cigarettesand Cigars, Branded Apparel,Education and Stationery Products,Incense Sticks and Safety MatchesFast MovingConsumerGoods• Luxury Collection, WelcomeHotels, Fortune Hotels andWelcome Heritage.Hotels• Paperkraft -Classmate• Colour CrewPaperboards& SpecialtyPapers
  14. 14. PackagingAgri-BusinessInformationTechnologyThe Companys multi-business portfolio encompassing awide range of businesses
  15. 15. Tata MotorsIndia’s largest automobile company, formerly known as Tata Engineeringand Locomotive Company1945Established in 1945, it is also among the world’s top five manufacturers ofmedium and heavy trucks and the world’s second largest medium andheavy bus manufacturer1954The company, began manufacturing commercial vehicles with a 15-yearcollaboration agreement with Daimler Benz of Germany.It has, since, developed Tata Ace, India’s first indigenous light commercialvehicle
  16. 16. 1991Entered the passenger vehicles segment and now ranks second inIndia in this market1998Tata Indica, India’s first indigenously manufactured passenger car2005Tata Safari, India’s first sports utility vehicle2008The Nano, the world’s cheapest car.Most recently, Tata Motors acquired Jaguar/Land Rover from FordMotor in 2009 for more than $2 billion.
  17. 17. PRODUCT PROFILE OF TATA MOTORSPassenger car & utility vehicle:Tata Sumo(1994)Tata Indica(1998)Tata Manza(2002)Tata Indigo marina(2004)Tata Safari(2005)Tata Xenon XT(2006)Tata Indigo(2007)Tata Winger(2007)Tata Magic(2007)Tata Vista(2008)Tata Nano(2008)Tata Aria(2010)Tata Xover()
  18. 18. Commercial Vehicles:Tata AceTata StarbusTata GlobusTata marcopolo busTata NovusTata 407EXMilitary Vehicles:Tata LSVTata 407 Troop CarrierTata WingerPassenger Mini BusJaguarLand Rover
  19. 19. Your goal is for people to feel comfortable with your product.Whether you choose an individual or family marketingstrategy, you want them to understand that your product is outthere, waiting to benefit them.If you can earn this understanding, even in a tiny corner of theconsumers mind, as a company you have won a great victory.