Single vs umbrella branding

Relevance of individual versus umbrella branding in the context of ITC and Tata Motors

1. SINGLE VS UMBRELLA BRANDING Prepared By, Jojo John Varughese S2 MBA MACFAST COLLEGE. THIRUVALLA

2. Individual Branding Individual branding also called or multi branding , is a branding strategy in which products are given brand names that are newly created and generally not connected to names of existing brands offered by the company. Each brand even within a same company, has a unique name, identity and image, allowing the company to target different market segments tailor pricing and marketing strategies, and separate the image and reputation of different products .

3. Advantages of Individual Branding Each brand can serve consumers in a different way. Each brand can use different marketing strategies. Brand separation allows a wider variety of products of different quality to be offered: lower-quality products under their own brand will not weaken the image of higher-quality products. Reduced corporate identity attached to a product allows brands to be positioned differently. The company's global reputation is not tied to products the failure of one product will not affect the company's global reputation.

4. Disadvantages of Individual Branding Risk of undesired . Instability within a company can occur. Launching new products as their own brand is higher risk, new brands lack acknowledgement and customer loyalty and need to find recognition. Multiple brands may divide the market and split efforts within one company .

5. Umbrella Branding Umbrella branding also known as family branding is a marketing practice involving the use of a single brand name for the sale of two or more related products. Umbrella branding is mainly used by companies with a positive brand equity. All products use the same means of identification and lack additional brand names or symbols etc. Umbrella branding involves the marketing of similar products, rather than differentiated products, under one brand name.

6. Advantages of Umbrella Branding Enhance marketability of products. Launching of a new product under umbrella branding gains recognition easily as it is introduced in the market which has already accepted brand image. New products get easy recognition .

7. Disadvantages of Umbrella Branding Umbrella brand may not succeed in a niche market where specialization is needed. The failure of one product may affect the others Umbrella brands are difficult to stretch vertically.

8. ITC ITC started its journey in 24 th August 1910 under the name of ‘Imperial Tobacco Company of India Limited’. During the first few decades of its operation the focus of the company revolved around Cigarettes and Leaf Tobacco businesses. But during the seventies the company ventured into different businesses including hotels and paperboards. During the nineties the company started   Agri Business Division and the new millennium saw ITC venturing into Greetings Card, Lifestyle Retailing, Information Technology, Packaged Food, Matches, Agarbattis (incense sticks) and many more. In the last few years ITC expanded its portfolio to include snacks and personal care products as well. So, over the years the company has become a truly diversified business house with interests spanning across industries.

9. ITC It is ITC's strategic intent to secure long-term growth by synergising and blending the diverse pool of competencies residing in its various businesses to exploit emerging opportunities in the FMCG sector. The Company's institutional strengths - deep understanding of the Indian consumer, strong trademarks, deep and wide distribution network, agri -sourcing skills, packaging know-how and cuisine expertise - continue to be effectively leveraged to rapidly grow the new FMCG businesses .

10. ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products, Personal Care products, Safety Matches and Incense Sticks ( Agarbatti ), at an impressive pace over the last several years, crossing Rs . 9700 crore mark in 2015-16.

11. TATA MOTORS TATA Motors is a part of the TATA group The brand name and logo have been protected by trademarking them under the TATA logo. The logo is visually appealing. However, the brand as such does not have any slogan or mantra for it. It does not have one specific celebrity endorsing the whole brand as such. They follow a sub branding strategy wherein each sub brand carries the TATA logo but has altered brand elements to suit the uniqueness of that product category and is marketed individually. Sources of brand equity of TATA Motors The logo is visually appealing.

12. However, the brand as such does not have any slogan or mantra for it. It does not have one specific celebrity endorsing the whole brand as such. They follow a sub branding strategy wherein each sub brand carries the TATA logo but has altered brand elements to suit the uniqueness of that product category and is marketed individually. Sources of brand equity of TATA Motors a century ago and was a part of Indian industrial revolution. This has helped the brand to lay a strong foundation in the Indian mind set.