Advantages:
Every brand achieves maximum indonesian numbers profitability by focusing on values and targeting a specific audience.
Maximum resource allocation: The negative consequences caused by the actions of one brand have little impact on the evaluation of others.
Flaws:
Requires separate investments for advertising each brand.
The manufacturer's brand has little influence on the launch of products and does not help promote them.
Umbrella Branding Methods
Branded House or branded house
In this case, they often prefer to buy high-end goods. Sub-brands group the company's products according to a certain principle.
Advantages:
The integration of each new brand into the structure brings results to all its parts.
The most advantageous structure of the umbrella brand.
Flaws:
A bad reputation of one brand will affect the entire structure.
This method of organization is very difficult to manage. It requires all sub-brands to create the same positive customer sentiment and approximately the same price range. If this is not achieved, the brand is no longer integral and the value proposition becomes disjointed in the minds of consumers, they no longer understand what they are paying for.
The use of the branded house structure can be found among car manufacturers. Thus, the "umbrella" brands Polo , Golf , Passat , Tiguan are produced by the manufacturer VW .
In 2009, as part of a study, the TBWA/Moscow agency developed a strategy for positioning Nissan on the Russian market. An analysis of the communications of the main brands for several years was conducted. Based on the results, maps were made for each, on which specific subsidiary brands were highlighted. It was clear that the smaller the area of the "cloud", the more integral and strengthened the brand was. The data was compared with sales during the crisis from 2008 to 2009. The results showed that brands that were more strengthened and integral at the time of the crisis suffered less from it.