Umbrella brand

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Hierarchy of umbrella brand, family brand and individual brand

In marketing, the umbrella brand is the superordinate brand of a so-called brand system, which is characterized by a particularly high recognition value ( range ) and usually a high level of acceptance in the target group and does not itself advertise any actual services (products / services). It occurs mainly in group-related market communication and connects the system of an indefinite number of so-called mono brands (individual product brands) and / or family brands under their image .

Purpose of use

Umbrella brand of the BKK in Germany

Brand policy in general has the task of stylizing largely interchangeable products into a stand-alone brand and creating a distinction from competing products. The umbrella brand has the branding of a product image, which ideally is transferred to all company brands and ensures consistent recognition even with diversified services.

With regard to the positioning and architecture of an umbrella brand with its associated product brands, very long-term considerations must apply, so that changes to the umbrella brand are usually made only rarely and with great care. In the USA , around 90 percent of the new launches in supermarkets are so-called mono brands, which only stand for one product, under an umbrella brand.

In addition to mono brands, there are also family brands, which are also known as range brands. This denotes brands for product families ( range = assortment) that can characterize several related products under one umbrella brand, see the hierarchy above .

Examples

The Beiersdorf umbrella brand with the family brands Nivea and tesa as well as three associated product brands

Regions

goods

services

  • "Allianz" is the umbrella brand for many services of Allianz SE as well as other investments in German and international service companies.

Possible problems

The establishment of an umbrella brand is associated with high start-up costs, a temporary blurring of the brand image up to the establishment of the independent mono brands and, above all, with initially low acceptance of the umbrella brand in the market. A clear positioning is therefore very difficult. Internal communication and internal marketing in the company cannot immediately rely on increasing the level of awareness of an umbrella brand. The product life cycle of an umbrella brand can be seen in decades rather than months or years. In the first few years, there is often a lack of a clear profile and thus the common identity of the new umbrella brand, which in the short to medium term can lead to identification problems and a lack of customer acceptance of the umbrella brand. The lack of concentration on individual target groups is another problem with an umbrella brand. The special features of individual services, such as B. Innovations or relaunch are not taken into account. There is also the risk of badwill effects (negative aspects of another product have an impact on the image of the product) due to the failure of individual services or external events (e.g. mass layoffs, environmental disasters).

Differentiation from franchising

In contrast to the franchisor , who also establishes a brand for its partners in the franchise system, from which a high recognition value should proceed, the owner of an umbrella brand owns the mono brands of the companies involved. However, franchisees are still legally independent economic entities and are only linked to the franchisor's brand through a cooperation agreement. There is no direct influence on the franchisors in their general communication activities outside of the partnership entered into.

literature

  • Esch, Franz-Rudolf (2008): Strategy and Technology of Brand Management, 5th edition, Verlag Vahlen, Munich.
  • Esch, Franz-Rudolf ; Bridegroom, Sören .: “Analysis and design of complex brand architectures”, in: Esch, F.-R. (Ed.) (2005c), Moderne Markenführung, 4th edition, Wiesbaden: Gabler, pp. 839–861.
  • Baumgarth, Carsten (2001): Brand Policy. Brand Effects-Brand Management-Brand Research. 1st edition, Wiesbaden: Gabler Verlag. P. 125

Individual evidence

  1. a b c Baumgarth, Carsten (2001): Markenpolitik. 1st edition. P. 125, Gabler Verlag, ISBN 978-3409116664