Analysis of umbrella branding

The 1980s witnessed a revolution in the knowledge of the working of the brands. Marketers summarize brands as a reflection image of customers' own personalities, so that customers can relate with their products well. In fact the unique aspect of the present day marketing has been it has focused after the creation of differentiated brands and using them as weaponry for initiating multi-level disorders on the opposition. Market research has been used as a marketing tool to help acknowledge and develop the bases of brand differentiation. A brand not only identifies a product but also its resources. Along arrived brand extension. At the moment brand extension strategies and plans are widely involved because of values that they build and communicate strong brand setting, amplify success and enhance understanding.

Brands tend to be prolonged beyond their original categories to incorporate new product categories. Research has proven that the success of brand extension depends on the copy of parent brand understanding and organizations to the expansion. The transfer of these quality perceptions is the main element in umbrella branding. An umbrella brand is a type of brand that addresses various sorts of products that happen to be more or less related. It is applicable also to any company that is identified only by its brand and the brand background. It really is contrasted with individual branding where each product in a collection is given a special brand and identity.

An umbrella brand is an overarching brand used across multiple products which can be related to each other. Another name for umbrella branding is family branding.

Time and again economies of range are related with umbrella branding since multiple products can be proficiently marketed with an individual advertisement or plan. This type of branding facilitates new product introductions by giving a familiar brand, which can result in product popularity, trial purchase and other advantages.

Umbrella branding may make an impression on the brand owner an excellent burden to preserve constant quality. If the grade of even one of the products in the brand family is compromised, it could have an impact on the reputation of all the others. This is a significant reason umbrella branding is normally limited to products that consist of products of similar quality.

Umbrella branding is extensively used. The umbrella brand and specific brands are in comparison to an Indian family, where in umbrella brands - like the Indian family, the daddy is the head, looking over the kids (individual brands). When they grow up and become independent, they hold the umbrella for the family. Alternatively the average person brands are just like a western family, who increase up fast and leave the family behind.

EXAMPLES OF UMBRELLA BRANDING

Amul's strategy of using "umbrella branding" has really paid. Amul's advertising spend hasn't exceeded 1% of its profits. Most of the other food companies spend 6-7% of their revenues on advertising and marketing. They are not big spenders compared to Nestle or Britannia. Despite a limited budget,

Amul's creatives by means of

1) Billboards or

2) The Flavour of India campaign

have always were able to remind a larger-than-life brand feel, stability and soul of Indian culture in a modern way.

Hindustan Unilever's beverage brands have been combined under two umbrella brands - Brooke Connection and Lipton. In the fabric clean category, it offers retained only Browse, Rin and Wheel. As time passes HUL has withdrawn its brands such as Nihar, Dalda, 501 and Sun rays; it programs to extract even more brands and put them under a few umbrella brands. HUL is currently focusing on its 35 electricity brands.

Nivea the makeup products brand has its existence in a wide array of product categories and countries. Nivea's performance impelled a yahoo. com reports article to mention it the 'Queen of Mega Brands. ' This title was appropriate since the brand was present in over 14 product categories and was available in more than 151 countries. Nivea was reportedly believed to be a brand of local source - having been within them for most decades. This truth went quite a distance in helping the brand attain the authority status in many categories and countries. Matching to experts, the brand was the solo major factor for the 4. 6% upsurge in the company's earnings and 10. 8% increase in after-tax profit. Beiersdorf never tried to improve the umbrella branding of Nivea and acquired prolific results.

PROCESS OF BRAND EQUITY

BRAND EXTENSIONS

A company could use its existing brand to launch new products in other categories.

Honda uses its name to market various products like cars, snowmobiles, motorcycles and garden mowers. This enables Honda to market that

It can fit "half a dozen Hondas in a two car Garage area"

Godrej now features its name on cleaning soap, lotion, hair shampoo, conditioner, locks, bathtub gel, raw poultry, almirahs, etc.

The latest pattern in corporate and business brand building is that corporation is licensing their labels to maker of an array of products from bed linens to shoes.

Brand extensions also entail risk.

The new product might disappoint clients & damage their respect for the company's other product.

The brand may lose its special placement in the consumers head due to dilution. When consumers no more correlate a brandname with highly similar products or a special ability Dilution occurs.

History of Brand Extension

Brand extension has been used since quite a while and is not really a recent phenomenon. It has been prominent since quite a while in the blissful luxury goods sector. India has been fortunate enough to always have big business properties like Godrej, Tatas, and Birla who have always forced newer and varied products under one BRAND.

Tata - From Metal to Cars

Godrej -From hair to Farm fresh Chicken

Ambanis after generations of distinction in Industrial chemicals have finally entered into telecom and vitality sector.

WHY EXTEND THE BRAND?

Innovation allows the brand to stay up-to time frame, allows a corporation to achieve a competitive benefit above the other and display a continuous attentiveness to the changes in customer style.

Also a major factor in brand extension is the price of advertising.

BRAND EXTENSION: HOW?

There are two preparatory levels, before placing any practical expansion.

The first is the exploratory level- It probes all the recollections and the associations that the people have in their intellects with the brand. This level helps in supposing concerning which products would be appropriate for the brand's so this means.

Second study period- Services ideas are tested. A decision can't be made on the basis of this information exclusively. Strategic decisions lead to brand extensions. In addition, it involves factors associated with marketing, finance, human resources and production.

It cannot be over-emphasized that extension cannot be contemplated without the entire knowledge of the brand's attributes.

Why Brand Extension Fail?

The various explanations why the effort of brand extension can are unsuccessful are that the strategy presupposes a number of assumptions.

Assumption one:

It will help get trial / sell the new product.

This need not be unavoidable, even if it's 'sensible'. The expansion of the brand name will help to get trial only when it is seen to Add Value to the new product.

Example, when Nirma introduced toothpaste -many consumers who observed a value in Nirma cleaning powder, did not think it is in the toothpaste.

Assumption Two:

It will reinforce the existing product.

A brand expansion can easily accomplish that, but only when the new product features a New Idea. Example, the Apple computers brand was actually improved by the introduction of the ipod touch MUSIC PLAYER - but this was a result of the iPod being truly a sensationally new idea. The Apple brand could not have achieved this, if the iPod was yet another regular MP3 player.

Assumption Three:

The brand collateral will ensure ready acceptance in the new category.

A common assumption would be that the brand has enough Stretch out to transport its strength into a new category.

Example, Bournvita was struggling to extend its durability to biscuits from a health drink.

One of the most critical weaknesses in many Brand expansion initiatives is that they focus on the marketer rather than the consumer. Brand Extensions will succeed only when they research and have a Consumer Connect.

Guidelines for Brand Extension

Guideline One:

Extend a solid Performance Characteristic Association.

This is the easiest level of which to begin with. Amul stands for pure milk. Indeed chances are that to numerous consumers, Amul is dairy. Therefore, it is simple to extend the brand from wet dairy, to butter, to cheese, to dairy whitener, and lately, to glaciers cream. However, with pizza, Amul may now be moving just somewhat too much from the center 'milk' association. Does the buyer think Pizza = cheese (=milk) or is Pizza = cooked food?

Guideline Two: Extend a solid Benefit Relationship.

Fair & Lovely owns your skin fairness benefit strongly enough to increase the brand

from the initial fairness cream to a cream to a soap to a under-eye cream.

Guideline Three: Extend an association with a Consumer Attitude or Notion.

Nike and its own swoosh stand for forcing oneself beyond the limit and an individualistic frame of mind - therefore the brand appeals to those who share this view and who wear the brand as a badge: in sports shoes, sports activities goods, bags, informal wear, even watches.

Guideline Four: Extend the brand based on Brand Substance.

There are also several watch-outs to notice before increasing brands.

Watch-out One: Is your brand extension mailing out contradictory indicators?

This could be happening regarding Nivea, where after offering skin-care products for ladies for years, a variety of men's toileteries was presented under the same name. Bad idea.

Watch-out Two: Is there any connect to the brand extensions or could it be merely a

convenient, available name that's getting used?

Maggi arrived to India with 2-Minute noodles - a hearty, anytime treat. Since that time the Maggi brand has been expanded to sauces, soup cubes, even pickles. There exists nothing that retains this group of products together. Is it shocking that the extensions aren't resounding successes?

Watch-out Three: Check the interpretation of the hyperlink across extensions.

Dettol was the ubiquitous antiseptic liquid (and then cream). Once the brand was first lengthened to soaps, the antiseptic property was interpreted to mean care and attention and Dettol was launched as 'The Love and Care and attention Soap'. It did not work. Today, many years later, Dettol soap offers security - a far more reasonable interpretation of the antiseptic property, and the soap is doing greater.

A few umbrella brands or specific brands? Regarding to experts, impartial brands only seem sensible when the product clearly has a different proposition from the company brand; like Lexus from Toyota and Swatch from Omega. In the case of Asian Paints, there have been so many sub-brands, there is a reduced amount of media weights to promote each entity. Then, the company shifted to a brand-centric collection, which involved an alteration of emblem, product names, presentation and advertising. But the response from the trade and consumers has been positive, overall brand synergy and shop existence have increased, and the advertising is more effective.

Most probably in near future the mass media environment can make it impossible to build newer brand names and the conditions at the consumer level, as well as the surroundings. So unless the merchandise is evidently different in the mind of the consumer, umbrella branding is the way to go. Umbrella brands are going to rule!

Nestle SA, the world's leading food company and the market innovator in both

coffee and nutrient water, produces a breeze selection of products including prepared dishes

and cooking helps, milk-based products, cereals, instant coffee, pharmaceuticals and

baby foods. Nestle SA is a publicly owned company, with subsidiaries around the world.

It website addresses in 104 countries. Additionally it is the world most significant food and beverage

company with $71 billion in total annual sales and almost 230, 000 employees around the

world. It markets some 8000 brands which include instant espresso.

Remarkably, its products are sold in every country on the planet, including in North

Korea.

Nestle jacket of forearms, the bird's nest, which identifies his name, is becoming a

symbol for the products being a safe care for their consumer product safeness and quality.

Research and development based mostly innovation capacity and strong brands are concern for

Nestle.

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