Corporate Umbrella - Definition & Meaning
What is Corporate Umbrella?
A corporate umbrella refers to a well-established masterbrand that forms the backbone of the entire corporation. Other brands associated with the corporation are structured around the masterbrand and benefit from the equity of the masterbrand.
The corporate umbrella basically lends credibility and trust to the other small or new brands that cannot stand alone and is used extensively for promoting them. The high awareness levels for the masterbrand enable the new brand to reach out to more consumers and make a visible impact. Consumers may be unfamiliar with the new product/service name but may connect to the corporate umbrella. This can help induce trials and influence consumers.
For example, Madura Fashion & Lifestyle, a leading branded apparel company that markets the Louis Philippe, Allen Solly, Van Heusen, Peter England and People brands, is a division of Aditya Birla Nuvo Limited. Although Madura is a still-unknown name, it has benefitted immensely since its inception into the ABN Group. Association with the Aditya Birla Group induces trust and a perception of value driving purchase decisions. Thus, the brand equity of the umbrella brand rubs onto the sub brands as well.
Take a look at some of the companies/brands under the Aditya Birla Group. Aditya Birla Group forms the corporate umbrella for these companies.
Hence, this concludes the definition of Corporate Umbrella along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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