Posted in Marketing and Strategy Terms, Total Reads: 4525
Definition: Umbrella Brand
An umbrella brand or a family brand is a brand which is used across a range of product categories i: e: a set of related but distinct products. Umbrella branding is very common across the FMCG sector. There are numerous advantages of using umbrella brand like increasing marketability, giving positioning to a product and reducing the cost of creation of a new brand.
For example if a brand is known for high quality another product under the same umbrella brand is also perceived in a similar manner. However one big disadvantage of umbrella brand is that the failure of one product may spoil the image of all the other products under the umbrella brand.
For Example Apple is an umbrella brand for a set of distinct but related products like the IPhone, IPad, Mac Book & other accessories. In the FMCG sector Nivea acts as another Umbrella brand with a wide array of products like cream, soap, powder, deodorant etc.