A STUDY OF UMBRELLA BRANDING STRATEGIES USED BY THE SELECTED COMPANIES FOR THE PROMOTION OF RELATED PRODUCTS Prof. Sandeep G. Rathod Assistant Professor, (MES Garware College of Commerce, Pune) ABSTRACT Umbrella branding is also known as family branding is one of the marketing practices involving the use of a single brand name for the sale of two or more related products or services. Umbrella branding is generally practiced by companies with positive brand equity which means a value of a brand in a certain marketplace. All products exercise the same means of naming and lack added brand names or symbols. This marketing practice is different from brand extension in that umbrella branding involves the marketing of analogous products, rather than differentiated products, under one brand name. Hence, umbrella branding may be measured as a type of brand extension. The practice of umbrella branding does not forbid a firm to implement different branding approaches for unlike product lines (e.g. brand extension). In this research paper the researcher has tried to study the impact of umbrella brand on various marketing mis strategies adopted by the company. Keywords: Umbrella Branding, Related Products, Promotion and Consumers etc. I. INTRODUCTION: Umbrella branding strategy is practiced to provide homogeny to certain product lines by assembling them under a one brand name, making them more easily identifiable and hence increasing their marketability. All products which come under the same corporate umbrella (master brand giving structure and credibility to other products of the company) are likely to have uniform quality and user experience (e.g. All products carrying the parent brand name must be of the same high quality and standards). Some of the Factors that may determine the impact of umbrella branding includes as: I. The degree of cohesion among the products which are falling under the one corporate umbrella (e.g. whether the products may act as substitutes for each other). II. The brand equity of a business (e.g. whether the brand is known in its product market). 1.1 Theories: Different theories attempt to explain a consumer's decisions and judgments during product purchasing that cause umbrella branding to be a most successful marketing strategy. 1.2 Categorization theory: 49 | P a g e The categorization theory is based on the notion that consumers lean to categories products and services by associating them to brands and their past experiences with those particular brands which are stored in their category memory, in order to evade the initial confusion practiced by the broad choice of products they are presented with. New information on certain products are categorized into various sections such as product class e.g. Liqueurs and brand e.g. Coca-Cola and then stored. Afterwards, consumers assess the product quality through past experiences with the brand's products as well as the brand equity they had experienced. This theory also gives insights for the popularity of umbrella branding. Consumers be likely to evaluate new products not only by optimistic brand equity but also if the brands idea is consistent with their extended products. For instance, presumptuous that the consumer had satisfactory previous experiences with the company's products, if Apple Inc. would develop and sell a new version of a Macbook then consumers would deem it more dependable and potentially of superior quality rather than if Apple would introduce a new beverage due to Apple's past product line. 1.3 The Schema congruity theory: The schema congruity theory proposes that the storage of new information and retrieval of memory is majorly predisposed by previous expectations. Schemas are human’s personal and individual cognitive representations of the environment that directs their perceptions, thoughts and proceedings. Schemas go through regular change as a human experiences and learns and gain new information. However, the new information is firstly examined on the basis of existing schemas and plans. Relating the theory to consumer assessment of products, a consumer previously or already possesses pre-existing schemas from past experiences with firm brands and therefore new products are examined based on the existing schema the consumer has with the firm brand. 1.4 Confirmation bias: Confirmation bias is a one of form of statistical bias, explaining the tendency to seek for or interpret evidence in ways that support and assists ones existing beliefs. After a consumer creates or does a preference of one brand over others, any additional characteristic that may be common between different and various brands will most likely only reinforce the consumer's pre-existing preference, causing them to ignore other brands. 1.5 Benefits: 1. Umbrella branding has become a popular marketing strategy which is being utilized by many companies due to its different potential benefits. Such marketing practice may create advertising efficiencies and effectiveness through the reduced and minimized costs of brand development. 2. This strategy decreases a firms marketing costs due to the consumer brand association through which consumers already recognize some of the brands, making new products more simply identifiable. 3. The market entry for umbrella branded products is comparatively economical since reputable brands can take benefit of past marketing efforts. 4. A business benefits from advertising efficiencies since umbrella branding focuses on the promotion of a one brand rather multiple ones. 5. Additionally the use of an umbrella branding does not stop companies from using and implementing other methods of brand extension, enabling them to remain elastic with marketing strategies. 6. Finally, the success of single umbrella branded product may translate to other products under the similar corporate umbrella due to the positive brand equity. 50 | P a g e II. RESEARCH METHODOLOGY The research is bases on the data collected for the selected companies to study their Umbrella Branding Strategies. 2.1 Objectives of the Study: 1. To study the Concept of Umbrella Branding and Umbrella Branding Strategies. 2. To study the Umbrella Branding Strategies Adopted by Selected Companies. 3. To study the benefits of practicing the Umbrella Branding and 4. To Study and analyze the risk related with Umbrella Branding. 2.3 Data Collection: 2.3.1 Sources of Primary Data: Primary data was collected by using interview method of data collection from the marketing executives of selected companies. The interview methods which were used includes face to face interview and telephonic interview. 2.3.2 Sources of Secondary Data: Secondary data was collected from research Articles from differed journals, Web sites, Company websites, News Papers and Magazines etc. III. LIST OF SELECTED COMPANIES TO STUDY UMBRELLA BRANDING: Popular Usage: Above given are the companies which used Umbrella Branding for their Products and Services. 1. Starbucks Corporation: Starbucks Corporation (operating as Starbucks coffee) is an American multinational Company which is into coffee business and the markets all of their products under their same corporate brand name. Some products produced by Starbucks include as follow: Starbucks Coffee: 51 | P a g e Starbucks Tea, Various types of teas, Starbucks Drink ware, Various types of drink ware such as cups, mugs and tumblers, Starbucks Equipment: Various types of equipment such as coffee machines and Starbucks Syrups and Toppings: Various types of syrups and toppings etc. 2. Virgin Group: Virgin Group Ltd. is a British multinational branded company which is into Investment Corporation. Virgin is one of the world’s recognized brands, which has practiced different types of brand extensions, including umbrella branding strategy too. Virgin has around 33 branches that operate under the one Virgin name; however, the practice of umbrella branding is pragmatic in their industry specific brands (e.g. Virgin Drinks, which was a subsidiary of Virgin Cola and Virgin Vodka). Products offered by the company are: Virgin Green Fund, Virgin Atlantic, Virgin Books, Virgin Games, Virgin Vacations, Virgin Spa, Virgin Life Care, Virgin Earth, Virgin Money, Virgin Media and Virgin Mobile etc. 3. Procter & Gamble: Procter & Gamble which is also known as P&G is an American multinational corporation which provides a range of consumer products. Although P & G create individual product brands e.g. Pampers and Pantene, umbrella branding is implemented within the single brand. Some of the individual brands owned by P & G include: Pantene: Brand of hair care products, including shampoos, dry shampoos, conditioners, moistures, hair-styling products, Oral-B: Brand of oral-hygiene products such as toothbrushes, toothpastes, dental floss, Gillette: Brand of men's safety razors and other personal care products such as shaving gels, foams, skin care, deodorants and shower gels, Vicks: Brand of over-the-counter medication including medication for cold & flu, cough relief, sinus relief and occasional sleeplessness etc. 4. Unilever: Unilever is a British Dutch multinational company which provides various consumer goods. Some of the products such as: Axe: Brand of male grooming products which includes deodorants, shower gels, body wash and conditioners, Dove: Brand of personal care products line for males and females includes antiperspirants and deodorants, body washes, different lotions, facial and hair care products, Lux: Brand manufacturing a range of personal hygiene related products which includes