The basic idea is to create a stream-lined association context for the product line. Such branding allows leveraging the family brand name while also creating a distinctive brand name that better suits the product. A combination brand name also allows a company to distinguish its different product categories and avoid confusion in the minds of the consumers. Such branding is quite popular in case of launch of a new product category by an established brand or in case of acquisition of a new firm/division.
For example, the Black & Decker Piranha Saw Blades combines two brand names- the family brand name being Black & Decker and a distinctive product brand name Piranha. The product brand name triggers better recall and through association with the piranha fish, reiterates the sharpness and effectiveness of the saw blades. However, the Piranha brand name alone wouldn’t do the trick. The use of Black & Decker name is intentional- this allows the company to leverage its brand equity.
To drive home the point that combination branding helps distinguish between categories, consider Ford EcoSport and Ford Figo. While the EcoSport brand belongs to the SUV segment, Figo belongs to the small car segment. The Ecosport name was carefully chosen so that it’s easy for the consumers to associate the product with the category the product is a part of. Extensive communications help cement a place for each of the brands and lead to accurately associated recall.
Some more examples are: Microsoft Windows (XP, 7, Vista, 8 etc.), Maruti Swift (default and Dzire), Lenovo ThinkPad, Google Android etc.