Is sub-branding always the right move?
Posted: Sat Feb 22, 2025 10:30 am
What are the benefits of sub-brands?
Google Sub-Branding
Sub-brands differentiate products. For example, Toyota has a subsidiary brand called Tacoma (mid-size trucks). And the customer remembers this name and associates it with Toyota.
The audience is more likely to purchase other products of the parent brand if they are related to the sub-brand. For example, a customer likes McDonald's Big Mac and decides to try another burger. The customer is more likely to choose one of McDonald's burgers because they already know what to expect from japan mobile database the company.
Additionally, a sub-brand can be used to explore new niche markets. This is what Sony did when it created the Playstation product for the gaming audience. This increased Sony's reach and business reach.
Subbranding has many advantages, but it should be taken into account that it is not suitable for all companies. Companies with subsidiaries spend a lot of money on maintaining brands and their growth. In addition, there is a risk that the subbrand will be lost in the shadow of the main company.
Also, the advantages of the parent brand can be reduced to nothing due to problems with the subsidiary. If you fail to manage all the company's divisions well, then problems may arise in some of them. All this will affect the trust in the parent brand.
When to create sub-brands?
How do you know when to create a sub-brand, and when to simply create a new stand-alone company? Or even a new business? Let's try to figure it out.
Here are a few questions that will help you decide which path to take. If you answer yes to all of them, it's time to create a sub-brand. Otherwise, it's time to think about rebranding or a new brand.
Is the sub-brand targeting a portion of the existing audience?
Will the sub-brand be able to cover the same needs as your main brand?
Does your sub-brand enhance your core brand?
Will your sub-brand receive more advertising or promotion than your other core products?
Based on the answers, you will be able to assess your options and make a decision about sub-branding.
Google Sub-Branding
Sub-brands differentiate products. For example, Toyota has a subsidiary brand called Tacoma (mid-size trucks). And the customer remembers this name and associates it with Toyota.
The audience is more likely to purchase other products of the parent brand if they are related to the sub-brand. For example, a customer likes McDonald's Big Mac and decides to try another burger. The customer is more likely to choose one of McDonald's burgers because they already know what to expect from japan mobile database the company.
Additionally, a sub-brand can be used to explore new niche markets. This is what Sony did when it created the Playstation product for the gaming audience. This increased Sony's reach and business reach.
Subbranding has many advantages, but it should be taken into account that it is not suitable for all companies. Companies with subsidiaries spend a lot of money on maintaining brands and their growth. In addition, there is a risk that the subbrand will be lost in the shadow of the main company.
Also, the advantages of the parent brand can be reduced to nothing due to problems with the subsidiary. If you fail to manage all the company's divisions well, then problems may arise in some of them. All this will affect the trust in the parent brand.
When to create sub-brands?
How do you know when to create a sub-brand, and when to simply create a new stand-alone company? Or even a new business? Let's try to figure it out.
Here are a few questions that will help you decide which path to take. If you answer yes to all of them, it's time to create a sub-brand. Otherwise, it's time to think about rebranding or a new brand.
Is the sub-brand targeting a portion of the existing audience?
Will the sub-brand be able to cover the same needs as your main brand?
Does your sub-brand enhance your core brand?
Will your sub-brand receive more advertising or promotion than your other core products?
Based on the answers, you will be able to assess your options and make a decision about sub-branding.