Umbrella Branding: A Researched Marketing Strategy

Defination of Umbrella Branding

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.

What is Umbrella Branding Strategy?

Umbrella branding strategy is a process where these sub brands are using the brand equity of these master brands to get a foot into the market and moreover help these sub-brand products or services to be easily adopted by the market, that give them a competitive advantage over other brands while advertising umbrella strategy of the brands.

Advantages of Umbrella Branding 

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.

Disadvantages of Umbrella Branding 

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.

Examples of Umbrella Branding

Xiaomi sells everything from Xiaomi Smartphones, Xiaomi Smart TV, Xiaomi Smart devices, Xiaomi trimmers, Xiaomi Toys, Xiaomi Tools and many more lifestyle products.

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