Sub Branding

When a company releases a brand under its main brand it is called a sub-brand. When Coca-Cola launched Diet Coke in 1982 it was creating a sub-brand. Sub-brands are great as they can attract new customers or offer a wider range of products or services. This common component of brand architecture is when the system is responsible for clearly defining the role of each sub-brand and their connection to the overarching brand story. If you want a brand to grow and diversify, it is critical to understand this strategy called sub branding. In this article we will explain what sub-branding is, the difference between a brand and a sub-brand, examples of sub-brands, pros and cons of sub-brands, how to know if you should create a sub-brand, and how to do it.

What is Sub Branding?

Sub-branding is an extension of the main brand that has its own name, identity and positioning. While sub-branding is similar to brand extension in that they both involve leveraging an existing brand, they have distinct differences. Sub-branding is a separate yet related brand that exists under the umbrella of the parent brand, often with its own distinct identity. Brand extension is when a company uses its name for a new product. Sub-branding allows companies to target new markets, expand product lines and revitalise the existing brand without diluting their core brand identity.

The Role of Brand Architecture in Sub-Branding

Brand architecture is the framework for all the products, services and brands within an organisation. It is essential for successful sub-branding as it ensures continuity between the parent brand and sub-brand. A good brand architecture clearly defines the roles of each sub-brand and ensures it connects to the overarching brand story. This system makes sure there is consistency across the primary brand and sub-brands and helps customers understand how the various offerings connect back to the parent brand. The role of brand architecture is to define the relationship between the primary brand and sub-brands and how they support each other.

Difference Between a Brand and Sub-Brand

A sub-brand is created under the parent brand within the framework of the brand architecture. This organisational system decides the main differences between the parent brand and the sub-brand including whether the two will be closely linked or operate independently. The main difference between the brand and sub-brand is that the parent brand is the overarching identity of the company, encompassing its name, logo and overall consumer perception. The sub-brand is like the child of the parent brand. It operates under the umbrella of the parent brand and is often created to target different audiences or a special niche. The key differences that brands and sub-brands differ within the brand architecture are:

Definition: 

The parent brand is the original identity of the company that influences the marketing strategies, logos, and consumer perception of the brand. It is the primary brand that oversees and influences the sub-brands underneath it. The sub-brand is a brand created underneath the umbrella of the parent brand that leverages off the success and awareness of the parent brand.

Originality:

The parent brand has its own original messaging, logos, product lines and identities with no influence from anything above them. It is the original, primary brand and the foundation of the business. Although the sub-brand will, in most cases, feature the parent brand logo,  it will most likely have a logo of its own. Sony Playstation is a prime example. The messaging may also be targeted at a different audience than that of the parent brand but still share the same core set of values. Sub-brands can be marketed to have a brand personality that better connects with the people the sub-brand is targeting.

Target Markets:

Parent brands have originally established themselves in the marketplace and understand their target market, focusing on the needs of that market. Sub-brands are often created under the parent umbrella to target the gap in the market that the primary brand cannot.

Purpose:

The purpose of a parent brand is to establish itself in the market with a unique identity, and build a relationship with consumers. The reason a sub-brand is created is to cater to specific products or niche categories that do not fall within the scope of the primary brand.

Examples of Sub-Brands

Many brands have tried to create sub-brands, and it can be a powerful tool provided it is carried out carefully. Successful sub-brands can expand a brand’s reach and appeal, but unsuccessful sub-brands carry the risk of diluting the parent’s brand equity and confusing customers. Examples of successful and unsuccessful sub-brands are:

Successful Sub-Brands

• Playstation from Sony: Playstation is a highly successful sub-brand of the parent brand, Sony. The success of the Playstation was due to the familiarity and excellent reputation of the Sony name. The sub-brand had this parent brand as a foundation and then with strategic branding, focus on innovation, and strong community engagement, the Playstation became one of the most popular gaming consoles in the world.

• Diet Coke from Coca Cola: Coca Cola created the sub-brand, Diet Coke, in 1982 to cater to the health conscious consumers, looking for low calorie options. The parent company, Coca Cola, had been around for 96 years before they introduced Diet Coke. It already had a sub-brand diet drink called Tab but they wanted a diet cola that could leverage the Coca-Cola brand name and appeal to a broader audience. The success of Diet Coke can be attributed to the unique marketing strategy, understanding the target audience, the positioning as a great tasting diet drink that only has one calorie, and the obvious connection to the parent brand, Coca Cola. Diet Coke was so successful it quickly became the top selling diet drink in the United States, and the third largest selling carbonated drink worldwide.

• Iphone, Ipad, Apple Watch from Apple: Beginning as a brand that makes computers, Apple’s sub-brands, the iPhone, iPad, and Apple Watch have become successful in their own right. The success of these sub-brands is due to a combination of factors including the strong association with the parent brand, established customer loyalty, reputation for innovation, and focus on user experience and design. Apple’s continual successful sub-branding lies in the strategic vision and commitment to improving customer experience from desktop computers to wearable mobile devices.

Unsuccessful Sub-Brands

• Virgin Health Bank, Virgin Care, and Virgin Active from Virgin: When Virgin has tried to break out in sub-brands it has failed multiple times. The creation of Virgin Health Bank, Virgin Care and Virgin Active have lacked cohesive brand identity. The logos and inconsistent look of the sub-brands had diluted the overall brand strength. Having too many business sectors under the parent brand led to customer confusion and a negative impact on the original Virgin brand.
  
• Kitchen Entrees from Colgate: Kitchen Entrees was a short-lived sub-brand of the parent brand, Colgate. It was unsuccessful as there was no correlation between the oral health brand and frozen meals. Colgate didn’t invest enough time into building a branding strategy that explained to consumers the connection between the oral hygiene brand and the frozen meal sector. 

Pros and Cons of Sub-Branding

Sub-branding has advantages and disadvantages. It is a great way to allow a parent brand to enter new markets but, if not managed properly, it can also lead to confusion and dilute the parent brand’s identity. The pros and cons of sub-branding are:

Pros of Sub-Branding

• Market expansion: Sub-branding allows a company to enter into new niche markets they were previously not suited to. This allows the parent brand to use its existing equity to create an additional identity for the new product or service. Companies can enter new geographic or demographic markets without the risk of damaging the parent brand. Coca-Cola branched into the health and diet market with the introduction of Diet Coke.

• Harness new audience: Brands can actually harness new audiences by the introduction of a sub-brand. An example of this is Uber Black, the sub-brand of Uber, that targets the premium ride sharing market with a professional driver and luxury vehicle. The ride share brand, Uber, has always been a standard and more affordable service.
  
• Offer new products: Sub-branding allows a brand to offer a larger range of products. This is the ideal way to launch products that are very different from the parent brand’s existing offerings in the market place. Samsung Galaxy is a sub-brand of Samsung which has always been associated with products like televisions and appliances. This allowed Samsung to introduce Smartphones and tablets.
  
• Stay relevant as a mature brand: Sub-brands can actually help original parent brands stay relevant in the marketplace. By adapting these sub-brands under their main brand umbrella, mature brands can adjust to the changing market conditions and evolving consumer base. A relevant brand is one that is chosen by customers because it continues to address their needs and desires. Qantas created the sub-brand Jetstar which has helped the original company stay relevant in a world where passengers are looking for more affordable airfares. Qantas was founded in 1920, while the sub-brand Jestar began operations in 2004 and has continued to be successful.

Cons of Sub-Branding

• Startup costs: Sub-branding carries significant startup costs, time and effort in the early stages. Typically, startup costs might include hiring a new team, a new marketing strategy, ads and additional product development costs.
  
• Confusion of public perception: A new sub-brand can be confusing to customers, particularly if there are a lot of sub-brands under the main parent brand. Several brand identities need to be established under each sub-brand with different looks, messages and approaches while still connecting them with the parent brand. 
  
• Brand dilution: Too many sub-brands or sub-brands that are not marketed properly can lead to brand dilution. This is when the brand loses its strength and identity in the eyes of the customer.

When To Consider Sub-Branding

There are times when brands should consider a sub-branding strategy including targeting a new audience or the product line. These factors are the most common reasons brands consider sub-branding.

• Expansion into other markets: When a brand wants to enter into a new market, a sub-brand is an effective way to achieve that. A sub-brand can still be associated with the parent brand but offer products or services in a niche market that has been previously untapped by the parent brand.
  
• New product or category development: When a brand has a new product or category to launch, a good way can be via the creation of a sub-brand. This is particularly helpful if the product is different from the brand’s usual offerings.
  
• Rebranding: If looking to rebrand, creating a sub-brand can be a great start. This way you can keep your original brand identity with its loyal customer base but still create something new to offer in the marketplace.

How To Build a Successful Sub-Brand

Creating a successful sub-brand involves a complex strategy to ensure the sub-brand will align with the parent brand’s identity and brand story. These critical steps show how to build a successful sub-brand. 

1. Determine the sub-brand type

Sub-brands can be divided into different types depending on their relationship with the parent brand. Choose the sub-brand type that will suit your new product or service. The choices are branded house where sub-brands use the parent name, house of brands where sub-brands have distinct identities, endorsed brands with a distinct connection to the parent brand, or hybrid which combines aspects of both branded house and house of brands.

• Branded House: In this model all the sub-brands operate under the one umbrella of the parent brand. 
  
• House of Brands: This model works with each sub-brand operating independently of each other, without referring to the parent brand. This can be good if you have a sub-brand that is completely different from the parent brand.
  
• Endorsed Brand: This model is grouped under a strong parent brand but has an independent brand identity. This strategy is good if you want the brand to have a different identity but a strong connection with the prestige and credibility of the parent brand.
  
• Hybrid Brand: Parent brands that have been around for a long time might adopt the hybrid brand strategy, which means it will decide when the brand is created whether to make it a sub-brand or standalone brand. With this strategy each sub-brand has its own strategy with varying levels of connection to the parent brand.

2. Choose a name 

Once you’ve decided on your model, choose a name for your sub-brand. The name should align with the parent brand but also be memorable and reflect what the sub-brand stands for. This is an important decision, as it will be the first thing people see when they encounter your brand. 

3. Create the visual identity for the sub-brand

Creating the visual identity includes choosing the colours, logo and font and what to include or exclude from the current parent brand visual design and colour palette. To create the visual identity, follow these steps –

• Look at the current assets of the brand and sub-brands

Take inventory of the assets of the parent brand and any sub-brands. Consider the look and feel of the logos, colours and styles. Consider if the sub-brands have similar features, colours and logos to determine if the new sub-brand should have the same. Create a spreadsheet with all the features and characteristics of the current brand and sub-brands.

• Decide on the new sub-brand mandatories

Look at the elements that you want to stay for the new sub-brand logos and which to remove. The sub-brand type will help you determine whether the main logo stays or goes. Work out the colours you want to use for the sub-brand design and packaging, taking into account if there is already a colour palette to adhere to.

• Create the new sub-brand identity

Now that you know what is mandatory for the sub-brand you can take into account diversifying factors for the new sub-brand identity. You may want or need to have some similar elements to the parent brand but you also want the sub-brand to stand out in its own right. Consider whether you can add more colours to the current colour palette of the parent brand, think about if this new sub-brand could stand out with a different font, or think about a unique logo while staying within the structured colour framework.

• Create the logo and guidelines

This is the fun part where you get to put all the hard work and research into creating the logo. When creating the logo consider these factors : 

• Orientation and how the logo elements will stack for vertical or horizontal layouts.
• The scaling of the icon and how it will look when it is scaled down or expanded.

4. Marketing and promotion

Finally you need to consider how to market and promote your new sub-brand. Consider elements like creating a website, social media profiles and marketing materials.

Sub-branding is when a new product or service is created under the umbrella of the original, parent brand. It is an excellent strategy to introduce new products, reach new audiences and help mature brands stay relevant in an evolving marketplace. For further information about sub-branding and whether that would work for your brand contact the experts at Brandwell.