Parent Brand

Posted in Marketing and Strategy Terms, Total Reads: 5573

Definition: Parent Brand

A Parent brand is an existing brand that gives rise to a brand extension by supporting the allied products/services by sharing its brand identity. Usually the supported products/services are from new product categories and can be related or unrelated to the existing product categories.

A better established brand can help launch products in new categories more easily. The extension of a brand to newer product categories is advantageous in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures a brand’s relevance and appeal. Brand extension increases the parent brand’s image apart from increase in the efficiency of promotions and advertising.

Disadvantages of Brand Extension may include damage of brand image due to extension in unrelated markets, loss of reliability and less awareness of the parent brand.

Example of a parent brand is of Nestle Maggi which a very strong brand in the noodles category which got extended to new product categories like ketchup and soups with the names Maggi ketchup and Maggi Soups, respectively.


Looking for Similar Definitions & Concepts, Search Business Concepts