As per various marketing experts, Umbrella branding is a marketing technique that is used to leverage the brand equity of a master brand, to sell a variety of related products or services to a broader segment of that audience. Putting it simply, the concept of umbrella branding works on a simple and effective marketing practice that involves selling or umbrella marketing many products under an already established single brand name or master brand.
Umbrella branding helps sub brands to get into the pre-established market with an established reputation. It needs less or no effort in raising brand awareness for the first time and easier adoption in the market due to brand sentiment. Advantage from success of any other sub brand under the same umbrella. Saves a lot of marketing and operations costs.
Quality fluctuation is a serious issue that is one of the challenges when it comes to the umbrella branding structure. It needs to stick to the same consumer segment and price band and hence you cannot break the shell. Failure of any sub brand majorly affects the master brand and its overall reputation. Needs quick redressal of issues in case of any image crisis to save the entire umbrella brand.