Corporate umbrellas or Umbrella Brands are those companies that endow with configuration and lend reliability for other brands that comes under the parent corporation. Generally Umbrella companies are large organizations with massive product lines that cater to different consumers. The product lines could get separated by the brands as well. For example HUL has several small brands operating under its name and HUL provides support and credibility for those brands.
Corporate umbrellas are generally much more recognized globally or in international level in comparison to its tributary brands. Hence, while establishing a new offering in the market, ancillary companies utilize the brand recognition and credibility of the parent company or the umbrella company to promote the launch. As the final consumers might be unaware of the brand’s presence, the reliability endowed by the umbrella company fosters the brand value of the specific trade name. It helps to attract the targeted audience much faster.
Although the brands can be distinguished from a layman’s viewpoint but the credibility offered by the umbrella brand makes it more attractive to the buyers.
These are those giant business firms that are recognized on national or international levels and had a diversified range of offerings with several brands synchronized under the parent company.
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