Umbrella branding – a disruption in true sense?

Abstract

The competitive and dynamic world of today has forced businesses to pay a greater heed to consumer brand perceptions and buying behaviour. Marketing efforts of companies are greatly focused towards creating long lasting impressionable brand image in the minds of consumers. The strategy of marketing several products under a single brand name termed as umbrella branding model is seen to create a strong brand equity for companies. It is observed that the success of this strategy stems from the fact that consumers’ perception of a product is associated to the quality and experience of other products within the same brand. This allows companies to leverage the strength of their existing brand and makes it easier to introduce new products. Literature shows that umbrella branding reduces hesitancy and consumer risk in relation to brand extension. Luxury brands and FMCG companies around the world have been successfully using this strategy to create brand value and promote the sale of their existing and new product lines.