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Unit 6: Products, Services and Brands

Umbrella branding may be suitable when markets are viewed as homogeneous, operating at a Notes
higher level of aggregation. But when markets are composed of distinct segments in terms of
buyer needs and preferences, companies start offering specialised need solutions to different
segments. This precipitates a difficult situation for companies using umbrella branding. From the
consumer’s point of view, a specialist brand is appealing and makes more sense. This is the reason
that auto companies offer small and mid-sized cars such as Alto, Esteem, Santro, Getz, Palio, etc.
Sharing a common brand name can be risky in case there is a problem with one category. This
may negatively influence consumer perceptions in other products sharing the same identity.
Also, it is difficult to stretch brands upwards (as happened in case of Maruti Baleno). Downwards
stretch in case of Parker failed because of Parker’s high-end image. Horizontal stretching is
relatively less likely to pose too much of a threat.

Double Branding Strategy

This approach combines umbrella branding and product branding. Along with the product
brand name, the company name is associated to create double branding.

Example: Tata Indica, Bajaj Pulsar, Maruti Suzuki Swift, etc.
Both names are equally important and are given equal status in the brand’s communication.
Double branding serves two objectives. The product gains from the company name awareness,
expertise, and reputation. And Pulsar adds some unique value of its own: “Definitely male.”
This is customer focus and the brand can communicate something in addition to what Bajaj name
stands for in customers’ perceptions and appeal to a new segment. The product’s brand name
helps differentiate the offer.

It is only the company’s area of expertise and image that may restrict how far it can go in using
this branding approach. Double branding works as long as brands are consistent with expertise
domain of the company. Beyond this domain, the brand may become a burden. Two or three-
wheeler autos are categories that have greater consistency in the area of company’s expertise
domain. But if the field of expertise is not consistent, such as trucks, or computers, double
branding may not always be a suitable branding strategy.

Endorsement Branding Strategy
This is a minor variation of double branding strategy. The product brand name gains a dominant
position, while the company name merits a lower profile. The company name appears in smaller
letters and takes a back seat. The brand largely seeks to exist on its own. The company name is
mentioned to identify who owns it just by way of endorsement to the product brand, such as
Godrej Cinthol, or Nestlé Kit-Kat identify the owners of these brands.
In case of double branding, the company name is an integral part with equal status. Endorsement
signifies assurance of quality by transferring certain associations that increase consumers’ trust.
The aim is not to pass on the company’s expertise domain.

Example: Customers ask for Fair Glow, or Chocos and not Godrej’s Fair Glow, or
Kellogg’s Chocos. Company name acts as a familiar signage to reassure consumers by
communicating the company’s associations and image.
Endorsement branding is nearest to product branding, allowing more freedom to the brand to
get its own distinction. When endorsement branding is tried in inconsistent areas, it is quite
likely to fail.

Example: Some time back Nestlé launched Mithai Magic and it did not work.

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