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The power of umbrella branding

Umbrella branding can be a successful marketing strategy. However, this depends on having a consistent and clear brand identity across the variants. It also needs to be recognized that, while this approach can help kick start variant launches, halo effects are not guaranteed. Only around a quarter of variant ads benefit other variants within the portfolio so it is usually necessary to support individual variant launches. Additionally, while variant launches can help sustain the parent brand image, a constant focus on variant communication can dissipate the core brand image.
Consistency is key
Umbrella branding is a commonly used approach in portfolio management, where the parent brand name is used across a range of products. In such cases, there is an assumption that a halo effect will benefit the individual brands. A halo effect can often help kick-start a new variant, through a sense of familiarity, credibility and associations. For this route to be successful, consistency is key. The chart below shows image data for a highly successful skin care range in China. The skin care brand has a clearly defined profile across its portfolio. In all formats it is seen as a modern brand with skin whitening properties, designed to make you look beautiful and feminine.

Support is still needed

When the variants are functionally differentiated, it should not be assumed that advertising for the parent and some of the variants will necessarily support the other variants. Sub-brands usually need support of their own to become established. This is shown by the following example in which a brand was launched into the deodorant category more removed from the core of the parent brand than its other categories with very little direct ATL support. Analysis showed that the brand had the potential to grow, but it was surviving off halo effects from brands in other categories (where significant investment was being made). Over the long-term, these halo effects were sustaining awareness of the brand in this category, even building it. However, the brands equity was still suffering due to heavy activity from competitor brands within the deodorant category. Eventually, funds were found to celebrate a consumer award given to the brand, and a campaign was aired. The response was very favorable, making a significant difference to the brands equity and helping to boost sales. When the variant is substantially different from the rest of the portfolio, it is more likely to require its own support.

The power of umbrella branding

Millward Brown March 2008

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Lynx can not afford to lose younger consumers that buy this format. So the introduction of an efficacious Lynx Dry sub-range made sense. It stretched the brand franchise, overcame credibility issues with the existing range and ensured the brand had something to offer groups of all ages and needs. The Lynx Dry advertising also made use of the brands established sexy advertising style. As a result, Lynxs efficacy images all responded positively. The brand could not seriously compete within the deodorant category without some bespoke category level activity. Halo effects can keep a brand alive in the mind of the consumer by providing reminders of the brands existence. But in an active category with specific category functionality, the brand also needs to provide consumers with reasons to choose their brand over the others.

Halo effects on the parent brand

There are three possible types of halo effect where marketing activity for one brand in the portfolio benefits the others: sub-brand on parent, parent on sub-brand, and sub-brand on sub-brand. However, the reality is that halo effects typically work from variants up to the parent brand, less often vice versa. Lynx is the biggest brand in the male deodorant market. It has established itself over the years through much talked about advertising to become the sexy deodorant brand. Body spray variants, which are not antiperspirants, but deodorants (antiperspirants stop you sweating, deodorants mask any odor), constitute 70 percent of all its sales. Lynx has a young bias to its user profile. Because of the body spray/deodorant product range and the young profile, Lynx is seen as a fragrance brand, not a serious antiperspirant brand. The brand launched a range called Lynx Dry a true antiperspirant. In order for the Lynx brand to grow in future, the marketing team has two battles to fight: recruit new teenagers to the body spray and encourage loyalty among older consumers. A total repositioning of the brand around the new antiperspirant was not the right move to make. The deodorant body sprays lack the stops sweat formula and

In another example, a new cleaning product was launched under an existing parent brand that already had a broad range of cleaning products on the market. It was supported by heavy weight TV spend in three TV regions, but with only light TV support in the rest of country. The product launch was also supported nationally in-store. The TV advertising was felt to provide new, different information, presented in a credible way, and was motivating with regard to the new product. The new products heavy weight advertising boosted brand image and created a new buzz around the parent brand. In areas where the new product was not advertised heavily, awareness and image of the parent brand remains static or in slight decline.

The power of umbrella branding

Millward Brown March 2008

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Using variant news to support the parent brand can be very effective, revitalizing a brands fortunes and making it seem more modern and progressive. If there are some exciting new sub-brands to show off, then it makes sense to do so, especially if the parent brand is in decline or perceived as old or less relevant. Parents may ride on the wave of the new variants if they successfully rejuvenate the brand, as can be seen in the following example.

many markets. It launched a variant in Europe which solved a category problem that was more cosmetic than performance related. This was a genuine need in the market and represented a good chance for the brand to innovate and move forward. But, for a number of months the brand supported this variant and focused on the cosmetic benefit of the variant, at the expense of performance. Without any reassurance on performance from the brand over an extended period, the association between the variant and performance started to be eroded. The core brand positioning is vital to the success of umbrella branding, and it must be sustained.

However, it is unwise to rely on halo effects. While halo effects from advertising are possible, they are rare. A review of 1 1 case studies shows that, when one variant advertised, 3 only 23 percent demonstrated a positive halo effect on short-term sales for another variant. Of the cases that were positive, only 5 cases were highly effective.

Variant support can dissipate the core

A balance needs to be struck between advertising the variant benefits and the core brand positioning. Variant advertising can generate a stronger rational response from consumers because it tends to advertise news, or communicate how the variant differs in a practical sense from established brands. However, there are dangers. Since variant advertising usually emphasizes differences between the parent and variant brand, a focus on variant advertising risks playing down the core brand values. The following graph shows brand image data for a personal care brand that is the market leader in many countries around the world and stands for top performance in

Knowledge Points are drawn from the Millward Brown Knowledge Bank, consisting of our databases of 80,000 brand reports and 40,000 ads, as well as 1,000 case studies, 700 conference papers and magazine articles, and 250 Learnings documents.

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The power of umbrella branding

Millward Brown March 2008