Welcome back to our brand architecture blog series! In our previous article, “What is Brand Architecture & Its Examples?” we dived into the concept of brand architecture and its various forms. If you missed it, make sure to check it out here.
In this article, we will clearly discuss sub-brands in brand architecture. Sub-brands are an essential component of the larger brand family because they offer unique characteristics inside the main brand architecture. Let’s dive into sub-brands, their pros and cons, brand examples, and when to use this strategy.
What Are Sub-Brands?
Sub-brands are individual brand names that are part of a larger brand portfolio. While providing unique characteristics and focusing on certain target markets or product lines, they still have a connection to the parent brand. These subsidiary companies frequently utilise the reputation and ownership of the parent brand while maintaining their own visual identity, marketing, and positioning.
The Pros and Cons of Sub-Brands.
Pros:
1. Improved Product Differentiation
Sub-brands give businesses the ability to successfully differentiate their goods and services. Businesses can target particular market niches, meet specific consumer demands, and prevent cannibalization within their product line by developing distinctive brand identities.
2. Risk Reduction
Sub-branding can assist in reducing the risks connected to brand extensions. When a new product or service fails, the negative effects are contained within the sub-brand, protecting the parent brand’s reputation.
3. Flexibility and Adaptability
Sub-brands give companies the freedom to enter untapped markets or launch novel goods under a strong parent brand. By using this strategy, businesses can enter new markets or offer variations of their core products without harming the parent brand’s reputation or consumer confidence.
Cons:
1. Complex brand management
Taking control of a variety of sub-brands can be difficult. Internal teams and budgets may be put under pressure because each sub-brand necessitates specialised services, resources, marketing initiatives, and brand positioning. It might be difficult to ensure consistency and alignment among all sub-brands.
2. Potential for Confusion
If the link between the parent brand and the sub-brand is not clearly conveyed to customers, the introduction of sub-brands may cause confusion. The positioning and messaging should be unambiguous in expressing the link while highlighting the distinctive value proposition of each sub-brand.
3. Brand Competition
Although sub-brands work to prevent it, there is still a chance that they will clash. To reduce this risk and make sure that each sub-brand has a target audience and value proposition, careful strategic planning and market research are required.
Brand Examples:
1. The Coca-Cola Company
Coca-Cola has successfully implemented sub-brands such as Diet Coke, Coke Zero, and Coca-Cola Life. Each sub-brand caters to different consumer preferences while leveraging the parent brand’s strong reputation and heritage.
2. Marriott International
Marriott has a diverse range of sub-brands, including Marriott Hotels & Resorts, Courtyard by Marriott, and The Ritz-Carlton. These sub-brands cater to different segments within the hospitality industry, providing unique experiences while benefiting from Marriott’s overarching brand equity.
When to Consider this Model:
Sub-Brands work very well in the following situations:
Diverse Product or Service Portfolio:
Sub-brands can aid in developing targeted identities and capturing several market segments when a company provides a wide range of goods or services to diverse target markets or industry verticals.
Maintaining Connection and Flexibility:
Sub-brands are a good option if a firm wants to stay connected to the parent brand while providing flexibility and distinctiveness for particular product lines.
How to Create Sub-Brands:
Creating successful sub-brands involves the following steps:
1. Start with a Strong Parent Brand
Make sure the parent brand has a solid reputation and is well-liked by consumers. This gives the sub-brands a strong foundation.
2. Select a Name That Is Relevant
When choosing names for sub-brands, consider how closely they link to the parent brand. This promotes brand awareness and recall while preserving a clear relationship.
3. Create a Unique Identity
For each sub-brand, create unique visual identities, brand message, and positioning. By doing this, they are guaranteed to stand out while gaining from the value of the parent brand.
4. Invest money on marketing and branding
Set aside funds to advertise and raise awareness of each sub-brand separately. Focus marketing efforts on a targeted audience and emphasise the sub-brands’ distinctive value propositions.
Conclusion:
By allowing businesses to maintain a connection to their parent brand while providing distinctive identities within the overall brand family, sub-brands play a critical function in brand architecture. Businesses can establish effective brand architectural strategies by comprehending the benefits and drawbacks of sub-brands, looking at successful cases, and taking into account the unique conditions that call for this strategy.
Keep in mind that brand architecture is not a one-size-fits-all concept and that the appropriateness of sub-brands relies on the particular circumstances and objectives of each business. Businesses can use sub-brands to effectively position themselves in the market and meet a variety of consumer needs by carefully considering the benefits and drawbacks.
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