Published by MBA Skool Team, Last Updated: February 05, 2017
What is 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. All the brands created under the parent brand have some important features related to the existing brand along with certain differentiated factors. Usually the supported products/services are from new product categories and can be related or unrelated to the existing product categories.
A better established parent 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 parent brand and sub brands
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. Also, the parent brand has extended its product into different variants and flavors as well.
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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