Umbrella Branding

CONTENT

Definition What is Umbrella Branding Case Study Traditional vs. Umbrella Approach Umbrella approach customer viewpoint Limitations of umbrella’s cover

UMBRELLA BRANDING

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….

•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.

What is umbrella branding ? …continued

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

Cases … Giant cover of umbrella.

• AMUL

•NIVEA

AMUL- Test of India cover.. of umbrella

• AMUL India's 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 company's 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’s Viewpoint.•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 than a brand

Individual vs. Umbrella Branding.Individual branding Umbrella Branding

COST OF PROMOTION IS HIGHER

LESS PRICE

PRODUCTS HAS UNIQUE IMAGE IMAGE IS REFLECTION OF PARENT BRAND

LESS STRESS ON QUALITY STRESS IS MUCH HIGHER

CAN’T WORK TILL PRODUCT IS WELL IN MIND OF CUSTOMER

CAN BE THE WAY OUT TO LAUNCH OR RELAUNCH OF PRODUCT

RISK IS MORE TO LAUNCH NEW PRODUCT

EASY TO LAUNCH NEW PRODUCT