An umbrella branding strategy, is a marketing practice that involves selling many related products under a single brand name.
Unlike individual product branding, which uses different brand names for different products, umbrella branding uses a single brand name, and in some cases logo, for different products.
Umbrella branding offers several benefits to marketers. They include-
Extra Brand Creation is not required
Common expenses for advertising (for all products)
Dependant perception: The perception depends on the main brand
Easier launch of new products
Better response to new products when compared to individual branding
Umbrella branding involves creating huge brand equity for a single brand, and thereafter leveraging that over multiple products. Umbrella branding is also known as family branding. It is very common to find umbrella branding in FMCG products.
On the flipside, bad reputation of any one product, may affect the equity of all the other products using the same brand name. In India, umbrella branding is used successfully by Amul for dairy products, Tata for its FMCG products like Tata Tea, and Tata Salt, and Kingfisher for alcoholic beverages, mineral water, and Airlines. Wills also uses umbrella branding for its tobacco products, apparels, accessories, and soaps & shampoo.
Example of Umbrella branding – In order to make it more clear, let’s take a concrete example such as Apple. Under the Apple brand, a customer can find IPhone, IPad, Mac Book, Mac Air, Apple watch, etc. The original brand Apple has been for Mac computers, and hence it is at the apex of the Umbrella. But, then the umbrella divides further into the IPad, IPhone and other apple products to cover it within the umbrella.