UMBRELLA BRANDING

Creating an umbrella brand with KOLORO will bring you:

Umbrella brand or umbrella trademark – brand extensions, by releasing a large number of diverse groups of goods or product categories under one name . The name for all product categories is the same. Advertising campaigns and all promotional materials feature the brand name and logo. An umbrella is usually created because of the ease of promoting a product under an already successful brand and much lower promotion costs. At the same time, it can be visually very different from the parent brand. They also develop a unique positioning, selling proposition, advertising strategy and communication for it.

Over time, if the company grows, new umbrellas may form within the main umbrella to separate. Such was the case with the giant LG. For a long time, the brand produced all products under one brand, from vacuum cleaners to toothpaste. Today, the line of household chemicals and hygiene products have spun off into a separate umbrella – LG Home. Ukrainian confectionery company AVK started Juviland candy for kids back in the day. The design of this product differs significantly from the rest of AVC’s products. Juviland later came out from under the AVC umbrella. The umbrella is also the Chumak Company. Under the same name brand they produce pasta, canned vegetables, juices, seeds, sunflower oil and various sauces.

You can order the development of an umbrella brand from a branding agency COLORO. In six years 6 on the market we realized many projects, among them brand development for Globino – milk umbrella.

YOU GET

Increase in sales and profits

Increase in sales and profits

Increase in sales and profits

Complex work from a large agency

Recognizable brand

Market entry strategy

Increase in sales and profits

Increase in sales and profits

Increase in sales and profits

Increase in sales and profits

Complex work from a large agency

Recognizable brand

Market entry strategy

Increase in sales and profits

Increase in sales and profits

What the price of umbrella brand development depends on

Developing a national scale brand is more expensive than a regional umbrella. The price is also affected by the total number of products that the umbrella brand brings together. The more specific the task and the narrower the field of activity – the lower the price of creating a trademark.

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Brand development: how an umbrella brand is created

1. Preparatory phase:

• comprehensive market analysis;
• consumer and competitor research;
• building brand equity;
• Developing a unique positioning based on the product’s advantages.

2. Develop 5 brand concepts (with visualization) that include:

• logo;
• A branded island that is responsible for brand recognition;
• spelling of names;
• reinforcing texts;
• Infographic.

3. Once a concept is selected, it is thoroughly refined based on a single product line.

Nuances and relevance of creating an umbrella brand

When creating an umbrella brand, it is important to maintain a balance between different products. The credibility of a strong brand should be transferred to satellite products. This effect is achieved by transferring the name and company colors. However, sometimes the design can be very different from the main brand. This approach helps to differentiate between different products and take only the best from the leading product. This approach is especially relevant for companies that produce radically different products. For example, household chemicals and food, milk and meat, baby food and alcohol.

Product categories for which creating an umbrella is particularly relevant:

• dairy products;
• alcohol;
• confectionery market;
• household chemicals;
• clothes;
• cosmetics;
• electronics.

Retail chains release STMs (own brands) under umbrella brands. This is exactly the case when the decision to create a generalist umbrella brand is made right away. A variety of product categories are produced under this umbrella, from toilet paper and cotton swabs to jams and beer. Their design is characterized by simplicity. It should demonstrate the availability of the product that is produced under STM.

Creating an umbrella brand: types

There are several types of creating an umbrella brand.

1. Sub-brand. The brand has one name, and the sub-brands duplicate it by adding a qualifying name to it. For example, Toyota has several sub-brands: the Toyota Corolla, Toyota Camry, and Toyota LandCruiser.
2. A single name. A variety of products are released under one TM, for example, the brand “LG”. In addition to home appliances and cell phones, the company even produces toothpaste under this brand.
3. A combination of options is also possible, such as the successful Nestle brand. There are products that come out under the parent brand Nestle (baby food). There is a line of goods produced under brands with the root “Nes” – Nescafe, Nesquik. There are sub-brands: Lion, Nuts, KitKat, Aero from Nestle. The Nestle logo is present on each of them, mutely above the brand name.

All of these variations in the application of the umbrella strategy of brand release and promotion show that it works. The concept brings success to the manufacturer when applied correctly. There are several cases where choosing this strategy will achieve the greatest benefit.

1. Having a popular brand with a good reputation. If a company has a strong brand name, a leader in its segment, a new product can be launched under it. This helps to shift consumer loyalty to the novelty.
2. High competitiveness in the market where it is planned to promote a new product (confectionery, alcohol, cosmetics). In these segments, it is advantageous to launch an umbrella brand in terms of advertising costs. For a market oversaturated with products, it is easier to use an already known name.
3. In order to maintain the reputation of an existing brand. This approach will help the manufacturer take up more shelf space and be in front of the customer. That way, the brand will be better remembered.

To develop an umbrella brand contact KOLORO. Our managers will analyze the market and provide a ready-made solution for your brand.

Sausage brand Globino and dairy umbrella brand Globino (cheese design is the work of KOLORO)

Building a brand: the benefits of developing an umbrella brand

• Ergonomics. There is no need to develop a new brand for the company. It saves money, it’s much easier to manage a new product if it comes out under the same brand. Less frames are utilized for this purpose.
• Investment Optimization. Promoting a product under an existing brand is much cheaper than creating a new brand.
• Simplifying distribution. It is much easier to establish a supply of goods to stores if it is produced by a reputable name. For the retail outlet, it carries less risk. Management usually favors a brand they already know.
• “Law of Synergy” Finances are spent more wisely, raw materials are cheaper, logistics are simplified – all these are the advantages of using an umbrella brand. An additional plus is the frequent situation where brand and sub-brand together yield higher capitalization.
• Consumer Backlash. Creating an umbrella brand will improve response to new products. Sales will be higher if it comes out under an established brand name.

Umbrella brand BIC makes everything from phones and surfboards to pens and lighters

Company branding for the umbrella at KOLORO: what you get

1. A team of marketers, designers and brand managers will develop a brand with high recognition.
2. Effective communication will be built to maximize profits.
3. A stable brand that won’t require a change of look for many years.
4. Complex work from a large agency, individual approach to your brand.
5. A carefully prepared go-to-market strategy from the KOLORO team.

Building a brand is a task that requires a well thought out plan. The umbrella strategy for brand development is no exception.

Contact KOLORO – we will conduct market research and develop a company brand that will be most successful for you.