The relevance of single versus umbrella branding in the context of companies like ITC and Tata Motors

1. Presentation by
SARAH MARY MATHEW
Sem 2, MBA
MACFAST, Tiruvalla
Kerala, India

2. Individual branding
Individual branding, also called multi branding, is the marketing
strategy of giving each product in a product portfolio its own
unique brand name.
Individual branding is where each product is promoted as its own
separate entity by using different brand names for different
products

3. Advantages of Individual Branding
Each product has its own unique image
It facilitates the positioning process i.e., one can position all products
differently without making trade-offs.
It works best when your company has several unrelated products
The company does not tie its reputation to the product-
If the product fails or appears to have low quality, the company’s name or
image is not hurt.
Additionally the term individual branding is used for keeping the brands
of a company unchanged after a merger and acquisition

4. Drawbacks of Individual Branding
 split markets
split efforts
possibility of imbalance within your company.

5. ‘One brand all products’- umbrella branding
An umbrella brand can be referred to as a brand when a group of
products possess the same brand name which is known as a family brand
or an umbrella brand. Different products having different brand images
are put together under one major brand or parent brand and are marketed
by the firm
Umbrella branding uses a single brand name, and in some cases same
logo, for different products.
Umbrella Brand Strategy
The same brand supports several products in different markets. Each of
them has its own advertising tool and its own communications
The main advantage of umbrella strategy is the capitalization on one
single name and economies of scale on an international level

6. Umbrella Branding benefits or advantages
They offer sale across many categories and markets
For all the different products and services, advertising, promotion
tools can be combined.
It's a motivator for employees
Benefits from economies of scale and product range efficiency
Promotion is very cheap and easy for products falling under umbrella
branding. New products can be launched with limited spending
Launching of a new product under umbrella gains recognition easily
as it is introduced in the market which has already accepted the brand
image.

7. Disadvantages of Umbrella Branding
•Quality of brands within umbrella brand may vary
•Impact of bad publicity can damage the umbrella brand
•Easy to over extend the umbrella brand
•More difficult to achieve a distinct brand identity

8. SINGLE VS. UMBRELLA BRANDING
Brands are not just labels to discriminate product offerings in the market.
But today, brands represent the intangible value that is created by the firm
through the marketing effort. This results in preference for the brand and
willingness to pay a premium.
There are cases where the umbrella brand has added value. Such as in case of
Johnson n Johnson.
But this need not be the case always.
If the brand is diluted as a result of the product association, or the brand has
specific meanings that do not rhyme well with the product category, umbrella
branding is not good strategy.
Eg: A ‘Harpic’ chocolate or ‘Dettol’ ice cream may never be attempted.

9. Since brands are expensive to create and maintain, it makes sense
for a firm to leverage the strength of an already established brand
across product categories.
Managing several independent brands as separate entities without
cannibalizing each other is not easy.
Many firms can find the challenge of managing multiple brands
intimidating.
Therefore, the trend towards umbrella brands is inescapable and
has many advantages

10. Purpose of umbrella branding
1. It is easy to identify the new brand in the company under umbrella
branding by the customers.
2. It gives uniformity to all the brands falling under it may be through one
designated approach of advertising, promotion, packing etc.
3. It is a very economical strategy to be implemented.
4. It is probably the best way to enter into new segments or introduce a new
product to market.
5. It will be very profitable for firms which are having different quality of
brands and different images of brands if followed properly.
6. It is the branding strategy that gives the probability of a brand extension
for every possible quality of profile.
This being the case, the drawbacks of family marketing only occur if one
product's standards drop or are not maintained, as this reflects negatively on
the group as a whole.

11. ITC
From a leading cigarette manufacturer to an umbrella group that offers a
diversified product mix
Why they did this ?
•Huge Imposition of Govt. on Cigarette Market
•To reduce dependence on cigarette business
How they did ?
•The Company’s relentless efforts to create value through
International quality products.
•Significant investments in technology and product development
•Strong portfolio of brands have enabled it to maintain its
leadership position in terms of market standing and share.
•Customization of product
•Brand image enhancement

12. 1910
ITC was incorporated under the name Imperial Tobacco Company
of India Limited.
1970
The name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited
1974 The name was again changed to I.T.C. Limited.
Thus removing the full stops the Company's name has caused for its
diversification into different range of products

13. The Company's multi-business portfolio encompassing a
wide range of businesses
• Foods, Personal Care, Cigarettes
and Cigars, Branded Apparel,
Education and Stationery Products,
Incense Sticks and Safety Matches
Fast Moving
Consumer
Goods
• Luxury Collection, Welcome
Hotels, Fortune Hotels and
Welcome Heritage.
Hotels
• Paperkraft -Classmate
• Colour Crew
Paperboards
& Specialty
Papers

14. Packaging
Agri-Business
Information
Technology
The Company's multi-business portfolio encompassing a
wide range of businesses

15. Tata Motors
India’s largest automobile company, formerly known as Tata Engineering
and Locomotive Company
1945
Established in 1945, it is also among the world’s top five manufacturers of
medium and heavy trucks and the world’s second largest medium and
heavy bus manufacturer
1954
The company, began manufacturing commercial vehicles with a 15-year
collaboration agreement with Daimler Benz of Germany.
It has, since, developed Tata Ace, India’s first indigenous light commercial
vehicle

16. 1991
Entered the passenger vehicles segment and now ranks second in
India in this market
1998
Tata Indica, India’s first indigenously manufactured passenger car
2005
Tata Safari, India’s first sports utility vehicle
2008
The Nano, the world’s cheapest car.
Most recently, Tata Motors acquired Jaguar/Land Rover from Ford
Motor in 2009 for more than $2 billion.

17. PRODUCT PROFILE OF TATA MOTORS
Passenger car & utility vehicle:
Tata Sumo(1994)
Tata Indica(1998)
Tata Manza(2002)
Tata Indigo marina(2004)
Tata Safari(2005)
Tata Xenon XT(2006)
Tata Indigo(2007)
Tata Winger(2007)
Tata Magic(2007)
Tata Vista(2008)
Tata Nano(2008)
Tata Aria(2010)
Tata Xover()

18. Commercial Vehicles:
Tata Ace
Tata Starbus
Tata Globus
Tata marcopolo bus
Tata Novus
Tata 407EX
Military Vehicles:
Tata LSV
Tata 407 Troop Carrier
Tata Winger
Passenger Mini Bus
Jaguar
Land Rover

19. Your goal is for people to feel comfortable with your product.
Whether you choose an individual or family marketing
strategy, you want them to understand that your product is out
there, waiting to benefit them.
If you can earn this understanding, even in a tiny corner of the
consumer's mind, as a company you have won a great victory.