Understanding Sub-Brands: Necessity and Exemplary Cases

What is a Sub-Brand?

A sub-brand is a secondary brand developed and managed under a parent brand. While sub-brands possess their own unique names, images, and identities, they maintain a connection to the parent brand to leverage the recognition and credibility it has established. This article will delve deeper into the concept of sub-brands and their significance in the marketing landscape.

Definition of Sub-Brand

A sub-brand can be defined as a distinct name that is associated with the parent brand and is presented within the context of the parent brand. Additionally, a sub-brand can also have its own sub-brands. For example, Nescafé serves as a sub-brand of Nestlé, which is renowned for offering a diverse range of coffee beverages. Within this category, Nescafé has further sub-brands like Nescafé Gold (instant coffee) and Nescafé Dolce Gusto (coffee capsules). To identify whether a company considers something as a sub-brand, one can look for trademarks or logos associated with the product name.

The Necessity of Sub-Brands

Sub-brands play a crucial role in shaping customer expectations and associations. Specifically, they offer several advantages:

Differentiation within Product Categories

Sub-brands enable companies to distinguish themselves within their product categories. For instance, Vingroup employs sub-brands like VinHomes for real estate projects, VinMart for its supermarket and convenience store chain, and Vinmec for its network of high-end hospitals and healthcare services. When consumers mention each of Vingroup’s sub-brands, they clearly understand what specific products and services to expect, thereby fostering trust and recognition among consumers.

Building Brand Perception and Expectations

To establish a solid brand foundation, it is imperative to implement unique brand development strategies. Take Apple, for example; while the flagship product is the iPhone, it also offers a range of complementary products, such as iMac and iPad. Although preferences for Apple products vary, the mention of the Apple brand instantly conjures an understanding of its product offerings.

Enhancing Trial of Parent Brand Products

Research indicates that customers are more likely to try additional products from a brand if they have a distinct sub-brand associated with it. For instance, when a consumer purchases an iPhone, they are more inclined to explore complementary products like the Apple Watch or AirPods, driven by their positive experience with the sub-brand.

Exploring Niche Markets

Furthermore, parent brands use sub-brands to penetrate various niche markets. For example, VNG utilizes the sub-brand Zalo to enter the instant messaging and social networking market. The Zalo sub-brand is marketed with a friendly and relatable persona, aimed at better connecting with Vietnamese users seeking a comprehensive and convenient communication platform.

Advantages and Disadvantages of Sub-Brands

Advantages

1. Promotion of the Parent Brand: A successful sub-brand aids in promoting and elevating the status of the parent brand while reinforcing customer loyalty. For example, Coca-Cola utilizes sub-brands like Diet Coke and Coca-Cola Zero to target different consumer segments, which ultimately strengthens the overall brand.

2. Increased Willingness to Experiment with New Products: Consumers who trust the parent brand are generally more willing to experiment with new offerings under the same brand umbrella, facilitating market share expansion. For instance, Unilever effectively uses sub-brands like Dove and Axe to explore different segments in the personal care market.

Disadvantages

Despite their advantages, sub-brands also come with challenges:

1. High Marketing Costs and Risk to the Parent Brand: Marketing and maintaining a sub-brand can be costly. If a sub-brand fails, it may negatively impact the parent brand, affecting customer loyalty and trust. A notable example is PepsiCo, which faced challenges with its sub-brand Tropicana when it underwent a failed packaging redesign, affecting overall brand perception.

2. Risk of Confusion Between Parent and Sub-Brands: When a sub-brand and parent brand are not clearly differentiated, customers may confuse them, leading to weakened identity and strength of the parent brand. For instance, if a sub-brand like Fanta does not clearly communicate its unique identity, it may dilute the core identity of the Coca-Cola brand.

In conclusion, understanding sub-brands and their significance is vital for marketers aiming to enhance brand recognition, expand market reach, and create lasting customer relationships