Umbrella Brand - IMPORTANCE of UMBRELLA BRANDING

IMPORTANCE of UMBRELLA BRANDING

1. It is easy to identify the new brand in the company under umbrella branding by the customers.
2. It gives uniformity to all the brands falling under it may be through one designated 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 new product to market.
5. It will be very profitable for firms which are having different quality of brands and different images of brands if followed properly.
6. It is the branding strategy that gives the probability of a brand extension for every possible quality of profile.

Researchers argue that umbrella branding generates fairly large amount of savings in brand development and marketing costs over time, also, umbrella branding can create advertising efficiencies. Consumer’s experience in one category may affect their quality perception of other product or service falling under same umbrella brand.

Some factors which may influence the impact of umbrella branding are-

1. The degree of commonality among the products falling under umbrella brand for same usage by customers.
2. Nature of branding policy applied by the firm as advertising and marketing different products under umbrella brand will be less informative but at the same time it will be less complex for target audience to understand.