If an existing product has already done that work, then the investment needed to launch a new product is significantly reduced if the new product can share the existing brand.īut sometimes companies try to market very different products under the same brand. Umbrella brands reduce the investment needed in launching new products, assuming the new product is similar.Ī company will spend time and money making people aware of a brand and communicating what the brand means.
Why would a company use an umbrella brand? Why do companies use separate brands?
