Although, by definition and name, it protects all products groupe under it, negative opinions that damage the reputation of one of the products can also infect the image of the others. Umbrella brand strategy step by step The company successfully sells one product. The develope quality allows it to introduce another product under the same brand, then create another one, etc. This is how the idea of umbrella brands is born. The umbrella brand has definitely more advantages than disadvantages, so it is worth considering using such a solution.
Choose one brand over another
However, before we move on to the implementation of actions, it is worth considering how to neutralize the shortcomings of the umbrella brand. First of all, we nee to consider the risk of brand dilution. This applies to situations where the categories of products offere are different. For example, when a brand producing juices wants to launch cosmetics database under the same name. Putting brands that offer extremely different products under one umbrella can make consumers feel confuse. They will stop “gluing” brands in their heads, they will not understand why the goods are sold under one trademark. In this case, a better solution is to create a completely separate brand.
Price positioning is a common
An effective way to avoid the problem of brand dilution is to find original, different product/service features that will set boundaries. These can be psychological values or consumer nees. Descriptive names will also be a method of distinguishing products. Introducing an umbrella brand to the market requires an appropriate strategy. Brand strategy HN Lists is the foundation of effective marketing, which protects it against crises. The aim of the strategy is to increase brand awareness, develop good associations with the company (image), promote the product or service, build a solid advantage over the competition and, as a result, increase sales and generate high profits. Creating a strategy is a demanding, time-consuming job – creative and analytical.