The main idea of such a strategy is to use psychological techniques: all products of one brand will be of the same high quality. Thus, even if the company has 10 different products, they will all inspire confidence in buyers.
The order of organizing vietnam number an umbrella brand
Why do you need an umbrella brand?
For additional support of the main one. This will allow to launch on the market categories of goods that are not related to the basic ones. For example, chargers from a laptop manufacturer.
To increase sales volume by expanding market share.
To successfully introduce a new product or line. For such a product on the market, it is necessary to think through various aspects, such as distribution and presentation of the product. Using an umbrella brand will facilitate advertising and promotion.
To save the marketing budget. There is no need to re-create the image, advertising and establish trust with consumers. In addition, the costs of promoting an umbrella brand can be 40% less than the main one.
For distribution. This applies to business, more precisely to B2B trade, where large distributors prefer to work with well-known brands, even if they belong to the parent company.
The umbrella brand strategy is to use the parent (base, main) brand to support its subsidiaries. At the initial stage, the subsidiaries rely on the protection and assistance of the former. Eventually, they will become more independent and eventually start supporting the "parent".
Elements of the master brand are key to consumer loyalty. If people trust the brand, they may be interested in its other products under an umbrella strategy.
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Pros and Cons of an Umbrella Brand
Creating an umbrella brand helps simplify the introduction of new products to the market, allowing you to save up to 40% of your marketing budget. Promoting previously unknown products requires significant investment and labor costs.