“Umbrella branding helps a product get established in the market faster”

Umbrella branding might present an opportunity to a product to establish itself faster in the market, but some limitations are also attached to it.

Replying to a query from Alpana Titus from Mumbai, Dr Prafulla Agnihotri, Director, IIM Tiruchirappalli, & Co-author of the book ‘Principles of Marketing: A South Asian Perspective’ with Philip Kotler, says, “Umbrella branding offers a number of benefits to the brand owner. One, it is economical. Two, it will help the product get established in the market faster. Three, it will inherit the same brand proposition and legacy that is enjoyed by the main/ original brand.”

He, however, cautions that umbrella branding might impose limitations on creating a unique brand identity for a new product. “Over a period of time, if the original brand declines or has to be fade out of the market, the subsequent products also face a threat of getting extinct,” he says.

The challenge for a marketer in such cases, Dr Agnihotri feels, would be “to create a distinct brand character and personality to the diversified product”. “Many a times, it may simply appear to be a brand extension of the original product. It is for this reasons, many leading marketers like HUL prefer to use product branding strategy which offers them an opportunity to create separate brand identities to each of their newer offerings,” he adds.

Dr Agnihotri answers to queries like these in ‘Pitch Q&A’, a regular segment in Pitch, the monthly marketing magazine from the exchange4media Group. A renowned marketing thought leader, Dr Agnihotri carries 10 years of varied industry experience and over 14 years of experience in academics. He holds a Master’s degree in Management Studies and a Doctorate in International Marketing Strategy; teaches courses in Marketing Management, International Marketing, Services Marketing, and Strategic Brand Management. He is also a visiting faculty at Euromed Marseille, Marseille-Provence, France, and CERAM, Sophia Antipolis, France.

To a question from Vikram Chaddha, New Delhi, on how to enter the lower and middle-class locality with a service product like laundry and dry-cleaning, Dr Agnihotri feels that for new ‘target group’ a different brand name would help differentiate the product from the existing one.

“If you want to expand in the middle and lower income category customers, then my suggestion would be that you should use a different name for your operations. Secondly, considering the cost difference as compared to local services, it will take longer for you to establish your services among this TG as it will be more price-sensitive,” he suggests, adding that the business aspects which influence the cost should be given due attention in this case to attract the price-sensitive consumers.

I want to get into the village tourism business amidst apple orchards in Himachal Pradesh. Usually back-packers come around these spots. How should I attract high-end tourists?

Replying to this question from Sudhir Kalta from Shimla, Agnihotri says that village tourist spots can be excellent destinations for honeymooners as well as others who want to enjoy a quiet holiday amidst nature.

But he cautions that offering an excellent experience should be a must for this kind of service product. “You will have to ensure that your resort offers an excellent experience to your guests and you will have to think how you can make their stay with you memorable so that they go back as your ambassadors.”

Alternatively, he also suggests that the village resorts can be a great place for corporates for their board meetings and corporate training and as a regular holiday destination for their employees.

Readers and marketers can reach out to Dr Agnihotri through Pitch and address their queries to him at