Single Vs. Umbrella branding

in the context of ITC and Tata Motors

Presentation bySARAH MARY MATHEW

Sem 2, MBAMACFAST, Tiruvalla

Kerala, India

Individual branding

Individual branding, also called multi branding, is the marketing strategy of giving each product in a product portfolio its own unique brand name.

Individual branding is where each product is promoted as its own separate entity by using different brand names for different products

Advantages of Individual Branding

Each product has its own unique image

It facilitates the positioning process i.e., one can position all products differently without making trade-offs.

It works best when your company has several unrelated products

The company does not tie its reputation to the product- If the product fails or appears to have low quality, the company’s name or image is not hurt.

Additionally the term individual branding is used for keeping the brands of a company unchanged after a merger and acquisition

Drawbacks of Individual Branding

split markets

split efforts

possibility of imbalance within your company.

‘One brand all products’- umbrella branding

An umbrella brand can be referred to as a brand when a group of products possess the same brand name which is known as a family brand or an umbrella brand. Different products having different brand images are put together under one major brand or parent brand and are marketed by the firm

Umbrella branding uses a single brand name, and in some cases same logo, for different products.

Umbrella Brand Strategy The same brand supports several products in different markets. Each of them has its own advertising tool and its own communications The main advantage of umbrella strategy is the capitalization on one single name and economies of scale on an international level

Umbrella Branding benefits or advantages They offer sale across many categories and markets

For all the different products and services, advertising, promotion tools can be combined.

It's a motivator for employees

Benefits from economies of scale and product range efficiency

Promotion is very cheap and easy for products falling under umbrella branding. New products can be launched with limited spending

Launching of a new product under umbrella gains recognition easily as it is introduced in the market which has already accepted the brand image.

Disadvantages of Umbrella Branding

•Quality of brands within umbrella brand may vary

•Impact of bad publicity can damage the umbrella brand

•Easy to over extend the umbrella brand

•More difficult to achieve a distinct brand identity

SINGLE VS. UMBRELLA BRANDING

Brands are not just labels to discriminate product offerings in the market.But today, brands represent the intangible value that is created by the firm through the marketing effort. This results in preference for the brand and willingness to pay a premium.

There are cases where the umbrella brand has added value. Such as in case of Johnson n Johnson.

But this need not be the case always.

If the brand is diluted as a result of the product association, or the brand has specific meanings that do not rhyme well with the product category, umbrella branding is not good strategy.

Eg: A ‘Harpic’ chocolate or ‘Dettol’ ice cream may never be attempted.

Since brands are expensive to create and maintain, it makes sense for a firm to leverage the strength of an already established brand across product categories.

Managing several independent brands as separate entities without cannibalizing each other is not easy.

Many firms can find the challenge of managing multiple brands intimidating.

Therefore, the trend towards umbrella brands is inescapable and has many advantages

Purpose of umbrella branding1. It is easy to identify the new brand in the company under

umbrella branding by the customers.2. It gives uniformity to all the brands falling under it may be

through one designated approach of advertising, promotion, packing etc.

3. It is a very economical strategy to be implemented.4. It is probably the best way to enter into new segments or

introduce a new product to market.5. It will be very profitable for firms which are having different

quality of brands and different images of brands if followed properly.

6. It is the branding strategy that gives the probability of a brand extension for every possible quality of profile.

This being the case, the drawbacks of family marketing only occur if one product's standards drop or are not maintained, as this reflects negatively on the group as a whole.

ITC From a leading cigarette manufacturer to an umbrella group that

offers a diversified product mix

Why they did this ? •Huge Imposition of Govt. on Cigarette Market •To reduce dependence on cigarette business

How they did ? •The Company’s relentless efforts to create value through International quality products. •Significant investments in technology and product development •Strong portfolio of brands have enabled it to maintain its leadership position in terms of market standing and share. •Customization of product •Brand image enhancement

1910

ITC was incorporated under the name Imperial Tobacco Company of India Limited. 

1970 The name of the Company was changed from Imperial

Tobacco Company of India Limited to India Tobacco Company Limited

1974 The name was again changed to I.T.C. Limited.

Thus removing the full stops the Company's name has caused for its diversification into different range of

products

The Company's multi-business portfolio encompassing a wide range of businesses 

• Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches

Fast Moving Consumer

Goods•Luxury Collection, Welcome

Hotels, Fortune Hotels and Welcome Heritage.

Hotels

•Paperkraft -Classmate•Colour Crew Paperboards

& Specialty Papers

Packaging

Agri-Business

Information Technology

The Company's multi-business portfolio encompassing a wide range of businesses 

Tata Motors India’s largest automobile company, formerly known as Tata Engineering and Locomotive Company

1945Established in 1945, it is also among the world’s top five manufacturers of medium and heavy trucks and the world’s second largest medium and heavy bus manufacturer 1954The company, began manufacturing commercial vehicles with a 15-year collaboration agreement with Daimler Benz of Germany.

It has, since, developed Tata Ace, India’s first indigenous light commercial vehicle

1991Entered the passenger vehicles segment and now ranks second in India in this market

1998Tata Indica, India’s first indigenously manufactured passenger car

2005Tata Safari, India’s first sports utility vehicle

2008The Nano, the world’s cheapest car.

Most recently, Tata Motors acquired Jaguar/Land Rover from Ford Motor in 2009 for more than $2 billion.

PRODUCT PROFILE OF TATA MOTORS Passenger car & utility vehicle:

Tata Sumo(1994)Tata Indica(1998)Tata Manza(2002)

Tata Indigo marina(2004)Tata Safari(2005)

Tata Xenon XT(2006)Tata Indigo(2007)

Tata Winger(2007) Tata Magic(2007)Tata Vista(2008) Tata Nano(2008)

Tata Aria(2010)Tata Xover()

Commercial Vehicles: Tata Ace

Tata Starbus Tata Globus

Tata marcopolo bus Tata Novus Tata 407EX

Military Vehicles: Tata LSV Tata 407 Troop Carrier Tata Winger Passenger Mini Bus

Jaguar

Land Rover

Your goal is for people to feel comfortable with your product. 

Whether you choose an individual or family marketing strategy, you want them to understand that your product is out there, waiting to benefit

them. 

If you can earn this understanding, even in a tiny corner of the consumer's mind, as a company you

have won a great victory.