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. Such marketing practice may create advertising efficiencies through the reduced costs of. Here are some examples to consider where family branding can help a small business owner. Umbrella branding is also known as family branding. Along with the benefits of customer awareness and that are core to the use of an umbrella brand, the approach also requires that the owner of the brand name take steps to ensure the quality of every good or service that is marketed under the brand.
If the agency used family branding, it would promote the agency brand as your all-inclusive place to find the insurance you need from home, auto, life and even business. Afterwards, consumers evaluate the product quality through past experiences with the brand's products as well as the brand equity. This will be accepted as the products are interrelated; however, if Starbucks plans to promote tablets, laptops or desktops, consumers will be unable to relate with the product as they perceive Starbucks to be in the coffee-related industry. Benefits Umbrella branding has become a popular marketing practice utilised by companies due to its various potential benefits. 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.
The Coca-Cola Company The Coca-Cola Company is a multinational corporation manufacturing various beverages. All products use the same means of identification and lack additional brand names or symbols. This is different from individual branding that promotes each product in a stand-alone fashion. If one of the products is perceived as being of lesser quality, this consumer perception could cause sales to drop for the whole family of products. Umbrella brands can create confusion among customers as to what the company wants to sell and result in brand avoidance.
Sometimes referred to as , the idea behind this type of approach is to enhance the marketability of all the products that carry the same name brand, thus building an increased rapport with consumers. Thus, diverse products come under common banner. They create a very individual feel for each of their lines, but also make sure to keep their family brand supporting the product. Are there any other companies you can think of that do a good job of family branding? Other companies that have implemented umbrella branding in their marketing strategy include: German personal-care brand , hospitality company and Global courier delivery corporation. This makes it easy for any organization to launch a new product, and gain benefits due to previous marketing efforts. Thus, the company might result in a negative brand equity also known as brand equity dilution.
The idea behind family branding is that a company can make a wide range of products both desirable and profitable by giving them all one recognizable name. Thirdly, umbrella branding is only beneficial when promoting relatable products through which consumers could recognise the brand. General Electric is another company that uses the corporate umbrella strategy effectively. After a consumer creates a preference of one brand over others, any additional feature that may be common between various brands will most likely only strengthen the consumer's pre-existing preference, causing them to disregard other brands. If it's not that great, then certainly, umbrella strategy won't be beneficial for that firm's other products. Merits of Umbrella Branding strategy 1. The brands could belong to one firm or many.
If you have high standards and always take quality into account, family branding can be a wonderful way to market your products. Advantages Advocates for the umbrella strategy claim it offers a number of advantages. The different products with different images are put under the major brand or the parent brand. For instance, assuming that the consumer had satisfactory past experiences with the company's products, if would develop and sell a new version of a , consumers would deem it more reliable and potentially of superior quality rather than if Apple would produce a new beverage due to Apple's past product line. However one big disadvantage of umbrella brand is that the failure of one product may spoil the image of all the other products under the umbrella brand. In this way, products can make an inexpensive entry in the market.
Whether the brand is known in its product market. This is especially useful for teaming up with different companies or other brand identities. For instance, when we go shopping and are confronted by a new product, which may look appealing and pocket-friendly but has that stranger tag, we tend to ignore it and opt for the more familiar stuff. But rather than promote themselves for just one service line, they general contractor using family branding strategies would create promotions that showcase a variety of contracting work they are successful in. The classic examples are Google, Yahoo, Apple, etc. Thirdly, umbrella branding is only beneficial when promoting relatable products through which consumers could recognise the brand. 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.
By simply attaching its brand name to the new service, the service receives the benefit of the public goodwill that already exists for that brand. Nonetheless, the new information is firstly evaluated on the basis of existing schemas. I think that while their products do often come with upgraded components, much of the additional cost comes from being a recognizable brand with a good reputation. Furthermore, a company benefits from advertising efficiencies since umbrella branding focuses on the promotion of a single brand rather, than multiple ones. The disadvantage to umbrella branding is that any negative publicity generated by the new product could affect the other products using the family brand, so the firm must ensure that the same quality standards apply to each product using the family brand.
An umbrella brander finds it difficult to cater to the unique needs. Hence, this concludes the definition of Family Brand along with its overview. However horizontal extensions are less harmful. For example, suppose a tax-preparation business has implemented many marketing campaigns in the past and has an excellent reputation with consumers. 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. The family brand is also referred to as an umbrella brand.