The concept of "umbrella brand" has recently come into our everyday life. What it means, what are its distinguishing features, advantages and disadvantages. This is what this article will be devoted to.
In order to correctly understand the essence of the issue, it is necessary to know the meaning of the basic concept of this sphere of PR, namely, the brand. Under this term, it is customary to understand a certain conditional graphic image or letter designation of the manufacturer of a particular product. Marketing specialists
position the brand as a stable symbolic perception of
the brand among the consumer. It is this feature of the human psyche that determines the positive perception of some goods and the steady rejection of others.
An umbrella brand implies an effective and systematic "promotion" of several types of products under one well-known logo. It so happened that a consumer who is confident in the quality of one product of a well-known manufacturer is more likely to acquire another if he sees a familiar sign or name of the manufacturer on it. For example,
The company that produces
carbonated drinks, baby food, confectionery, tea and coffee, known to us under various trade names, is an umbrella brand. A vivid example of this can be the brands Nestle, Swarzkopf, Coca-cola, Danon and many others.
Brand Types
Today, there are several varieties of the brand:
- Standalone. It is intended for one product or product, although there may be several varieties of them in a line. For example, the Bounty bar.
- Light. This version involves the addition of a slightly modified product to the product series (limited edition of Pepsi-Cola unusual blue color). However, a further increase in the varieties of goods is not required.
- Brand with extension. This strategy allows the manufacturer to release new products under an existing name. For example, new collections of bags of a well-known brand. There may be as many as you like, but the name remains unchanged.
- Linear. This variety determines the presence in the product line of several products united by one purpose (a series of hair care products: shampoos, conditioners, hair masks, etc.).
- Umbrella brand. It is sometimes called the "reference." Its essence is in the release of products of the broadest purpose, from toilet paper to professional make-up or even clothes and shoes, for example. Only a company that already enjoys the popularity and trust of consumers can afford such a strategy.
Benefits of a reference brand
The main positive aspects of an umbrella brand marketing company are:
- A simplified scheme for the popularization of goods due to the fame of the brand;
- reducing the cost of bringing products to the market. No large-scale expensive advertising of brands or the search for an original name for a new product is required: the client will recognize the product by the familiar logo or name of the manufacturer;
- increased sales due to a large number of products for various purposes.
Negative sides
An umbrella brand has a rather significant drawback, which is the flip side of its advantages: a logo that looks like a well-known designation or a symbol of a popular brand is often used by scammers to produce low-quality counterfeit products. Disappointed in a fake, the buyer can transfer the negative perception to all products of the manufacturer as a whole.