7 Examples Of Umbrella Brand Strategy
Companies must go the extra mile in today’s highly competitive market if they’re determined to stand out. There are numerous ways for brands to leave a lasting impression on customers, from creating unique brand designs to enticing incentive programs. Above all, your main ticket to success is designing products that meet customers’ needs and build brand loyalty.
However, developing new products that gain favor from your customers can be challenging. There are numerous costs involved in the product development process, but there are also many risks that could cause your idea to fail. This is where umbrella brands come in. Here’s what you need to know about umbrella branding and how you can learn from famous examples of this marketing strategy.
What Is an Umbrella Brand?
An umbrella brand is a single brand that sells multiple products under its brand name. These products are typically related to each other in some way. For example, the Apple brand sells several items marketed as Apple products, such as the iPhone, Mac, iPad, Apple Watch, etc.
The main goal of an umbrella brand is to coordinate all of its products seamlessly and cohesively. Customers should recognize all the products sold under the “umbrella” and know which company is marketing them. When executed correctly, umbrella branding can also help boost brand loyalty and expand a company’s target audience.
Advantages and Disadvantages of Umbrella Branding
Umbrella branding can benefit your company in many ways, but it may also present certain challenges. Learning about all the advantages and disadvantages of this marketing strategy can help you determine whether it’s right for you.
One of the biggest advantages of umbrella branding is a greater chance of success across your entire brand. Because all of your products are housed under a single brand name, a boost in sales for one product will likely lead to a boost for your other products. This creates a ripple effect that nourishes the success of your whole company.
Umbrella branding can also help you save money on marketing campaigns. Instead of designing a separate campaign for every product you release, you can invest in a single promotion for your brand as a whole. This dramatically reduces the resources you have to use to market your products to customers.
However, there are several potential drawbacks to take into account. One of the biggest obstacles that umbrella brands face is a lack of consistency. Customers expect the same quality level for all the products you sell, and they will be disappointed if you fail to meet this standard. Umbrella brands are disadvantaged in this respect because they have multiple products to manage at once. On the other hand, non-umbrella brands can focus all of their time and energy on a single product without neglecting the other products under their brand.
Finally, if one product develops a bad reputation, it will affect the other products sold by that brand. This can pressure companies to succeed in their product development and branding efforts.
Examples of Umbrella Brand Strategy
To effectively implement umbrella branding, it’s important to learn from past examples of success and failure. Here are six of the most well-known umbrella brands and what they did right or wrong.
Procter & Gamble (P&G) is one of the most recognizable umbrella brands in the United States. This giant consumer goods corporation owns several product lines found in households throughout the country. Some of the most well-known brands under the P&G umbrella include Pampers, Tide, Gillette, Crest, Pantene, and Bounty.
Most consumers know Kraft for its classic Macaroni & Cheese dinner. However, this umbrella brand also houses several other products that span various categories. The most popular examples include Kraft 100% Parmesan, Kraft Singles, Miracle Whip, Caesar Salad Dressing, and Shake n’ Bake Chicken Seasoning. Not only do all of these products fall under the food category, but they also maintain the same quality that customers expect from Kraft.
Nestle is an example of an umbrella brand that took a major hit. After Nestle released a flagship product called Maggi, it was discovered that it contained high lead levels, a toxic element that can cause brain damage, kidney failure, and even death. Due to Maggi’s catastrophic failure, Nestle earned a large stain on its reputation that affected the company.
4. Johnson & Johnson
Like P&G, Johnson & Johnson is a widely recognized company with many product lines under its belt. The most well-known products under this umbrella brand include Tylenol, Benadryl, Neosporin, Band-Aid, Aveeno, Neutrogena, and Listerine. These items belong to the personal care category and have been trusted by Americans for years, making J&J an established leader in umbrella branding.
Unilever differs from most umbrella brands in that its products span many categories. Whether shopping for body wash or green tea, you’ll likely see Unilever’s logo plastered onto your product of choice. However, because Unilever maintained a consistent quality across its entire brand, it succeeded despite branching into various categories. Examples of product lines that belong to Unilever include Dove, Axe, Breyers, Lipton, and Magnum.
Walk through any cereal aisle in the US and find Kellogg’s famous cereals lined up across the shelves. However, this umbrella brand doesn’t limit itself to breakfast foods. Kellogg’s has also embraced many other delicious snacks that promise the same crunch and great taste as their cereals. Some of the brand’s most popular products include Special K, Pringles, Pop-Tarts, Froot Loops, Corn Flakes, Frosted Flakes, Nutri-Grain, Cheez-It, and Rice Krispies.
Reckitt has many brands, whether you are shopping for Lysol, Mucinex, Woolite, or a savvy “baby-maker” looking to support their family’s health with UpSpring, a Propr client. Reckitt has a large variety of brands that we use in our day-to-day lives. The British consumer, once known as RB (Reckitt Benckiser), has since rebranded to Reckitt.
Achieving Success as an Umbrella Brand
Forming an umbrella brand is a great way to make your products more recognizable to customers and promote quality across your entire brand. In addition, umbrella branding can help you save money in the long term, as you don’t have to invest in multiple ad campaigns for each one of your products.
Simultaneously, various risks go hand-in-hand with umbrella brandings, such as a lack of consistency and a bad reputation associated with your entire brand. It’s crucial to be aware of all of these potential disadvantages to know what to expect.
Keep these examples in mind if you’re thinking about implementing umbrella branding into your marketing strategy. Learning from real-life examples of umbrella brands can help you build a strong umbrella brand strategy, whether you learn from companies’ successes or failures.
Above all, be sure to prioritize quality and consistency when forming an umbrella brand. Releasing products that speak to your values as a company will help you build brand loyalty. In addition, you’ll have the chance to help your products reach a much wider audience in the long run. If your brand is joining a large corporation that uses umbrella branding, Propr Design can help transform your brand. Our process helps our clients be better leaders and more confidently prepared for the growth and results we deliver.
Contact us to get started, and let us take your umbrella brand strategy to the next level.