“Your laptop brand is Apple, right? Your smartphone is also an Apple, right?” Ever heard of such a question? If so, it means Apple has successfully implemented the umbrella branding.
This strategy is often used by large companies. He said this made every product he launched easily recognizable to the public.
Is that right? Come on, find out the answer in this article!
What Is Umbrella Branding?
A product once known for its good quality will always be remembered by customers. They will not hesitate to use the product repeatedly.
This is called brand loyalty.
Therefore, after creating brand loyalty, many companies choose to apply umbrella branding. What is it?
According to SendPulse, umbrella branding is a marketing strategy that uses well-known brand names.
Every time a new product or business line is introduced, the company relies on that big brand.
A simple example is Apple. When the Mac computer was launched, the world immediately recognized the quality of Apple.
Founded by Steve Jobs, the company is also known as a high-end technology brand.
Eventually, Apple launched many new products under its brand, including iPhone, iPad, Macbook, and iTunes. However, all of these remain under the auspices of the Apple brand.
This is an umbrella branding. Apple becomes an umbrella while other products are under that umbrella.
So why is this brand strategy preferred by many companies?
Imagine how long it takes you to create brand awareness for a product. How much capital do you need to spend?
Building brand awareness and even brand loyalty is not an easy thing.
That’s why the umbrella branding plays a big role in both of these things.
If customer trust is already attached to a brand, it will be easier for you to gain trust in other products.
For example, Apple launched the latest iPhone series. There are probably many people who respond, “Ah, Apple’s products are good. Buy it, go for it!”
Advantages and Disadvantages of Umbrella Branding
Before implementing umbrella branding, it’s a good idea to weigh the pros and cons first.
Summarized by MBA Skool and SendPulse, here are the pros and cons.
1. Surplus
- Reduce advertising costs
- Customers are loyal to the brand
- Strengthen existing brands
- increase sales
2. Shortage
- The risk of failure is high if the brand is not known to many people
- One product fails, other products can also be considered a failure
- More suitable for similar products
- Potential to create competition between existing products and new products
On the one hand, this branding strategy is interesting. There are many opportunities you can take advantage of. Its implementation has been quite effective and efficient.
However, there are some things you need to pay attention to. Do not let your brand’s products fail.
Example of Umbrella Branding
In the explanation above, We mentioned that Apple uses umbrella branding.
Yes, Apple acts as an umbrella branding. Among them are rows of gadgets that are loved by citizens of the world. Call it iPhone, iPad, Macbook, iOS, Apple Watch, Apple TV, and so on.
All these products have one thing in common, which is in the form of technology that supports the lives of their users.
Each of these products is also equipped with a user-friendly display, making it easy to use.
However, users still recognize these products as part of Apple. The image of the quality, features, and sophistication of each of these products has stuck in many people’s minds.
With just a glance, they already knew that the product was of high quality.
In addition to Apple, the global FMCG company P&G also uses umbrella branding.
They have various products such as Gillette, Pampers, Head & Shoulders, Pantene, SK-II, and Oral-B.
Like Apple, when someone sees a P&G product, they immediately recognize and trust it.
Umbrella branding is an interesting strategy worth trying, especially if your brand is well-known.
The good reputation of your brand can have a positive impact on all the products you launch.