What do brands like Coca-Cola, Toyota, and Uber have in common? They all use sub-branding to target different customer needs and expand their market reach. But what is a sub-brand, and why is it essential for brand success?
A sub-brand (sometimes written as "sub brand" or "subbrand") is a product or service with its own identity. However, it's also closely tied to a more prominent, well-known parent brand. Sub-brands often enable companies to enter new markets and reach diverse customers. They can also add new features without overshadowing the core brand.
Take Coca-Cola as an example. In the 1980s, Coca-Cola wanted to appeal to health-conscious consumers, so it introduced Diet Coke. As Coca-Cola's first sugar-free soft drink, Diet Coke became one of the most successful sub-brands, expanding its audience while preserving the original brand's reputation. This success eventually led to other products like Vanilla Coke and Coca-Cola Zero.
So, why is sub-branding a powerful tool for businesses? This article will define sub-brands using well-known examples and Phase 3 case studies. We'll explain their purpose and highlight how they can drive growth and brand success. Whether you're wondering, "What is a sub-brand?" or "What are subsidiary brands?" this guide will tell you what you need to know about sub-branding. But first, let's define what sub-branding means and how it fits into a company's organizational structure.
What is Brand Architecture?
Sub-branding is a component of brand architecture, which is the framework that organizes a company's master brands, sub-brands, and other offerings. Brand architecture helps businesses manage many products or services under a single brand. It ensures clarity and consistency. It's the foundation for your master brand strategy.
Two Types of Master/Sub-Brand Architecture
There are two primary types of master/sub-brand architecture.
- Branded House: In this model, sub-brands carry the master brand name, like Jeep, Coca-Cola, and FedEx.
- House of Brands: This model has no visible link between the master brand and the sub-brands. For example, Procter & Gamble, LVMH, and Unilever are all houses of brands.
The Goal of a Branded House or Sub-Brands Strategy
This article will focus on the "branded house" strategy of brand architecture. The goal of this strategy is to create clarity and consistency between each brand and sub-brand within a company portfolio. Successful execution of the sub-brand strategy can align product positioning. It can promote cross-selling and brand awareness. It can enable innovation and new product development. It can also support marketing and communication efforts. A sub-brand strategy generates unique value with each sub-brand. It also supports a company's overall business goals and objectives.
What is a Sub-Brand?
Like Diet Coke, Jeep Wrangler, and FedEx Ground, a sub-brand is a product or service that operates under the umbrella of a parent brand while still maintaining its unique identity.
Sub-Brand vs. Master Brand
A master brand is the primary, overarching brand that represents a company's core identity and typically is the original or first product in the portfolio. It embodies the company's values, reputation, and overall market presence. For example, Coca-Cola is synonymous with the original soft drink and its iconic red and white branding. The master brand is responsible for the company's broad positioning and is the central pillar of its brand equity.
A sub-brand is a natural extension of the master brand. Sub-brands maintain key visual elements of the master brand. For example, the Diet Coke logo is a modification of the Coca-Cola logo. Coca-Cola Zero Sugar emphasizes "Zero Sugar" on the packaging while retaining Coca-Cola's core branding.
Sub-brands produce a particular product line or service within a master brand family. They have their own name, voice, and identity designed to engage a specific target market. Diet Coke targets a different audience than Coke Classic. It has a distinct flavor, "healthy" benefits, and a sleek silver (instead of red) can.
Coca-Cola is the master brand with a unified identity. Its sub-brands, like Coca-Cola Zero Sugar and Diet Coke, provide targeted solutions. Each has distinct traits but benefits from the master brand's strength and recognition. In essence, sub-brands are brands within brands.
Famous B2C Sub-Brands
Examining successful consumer sub-brands like Coca-Cola provides insights into how companies leverage master brands to meet diverse customer needs and business goals. Following are other examples of successful B2C sub-brands.
Microsoft (Master Brand) and Sub-Brands
- Microsoft Office: A suite of productivity tools including Word, Excel, and PowerPoint
- Microsoft Azure: Cloud computing services
- Xbox: Gaming console and entertainment brand
- Edge: A search engine competing with Google search
Toyota (Master Brand) and Sub-Brands
- Toyota Corolla: Reliable, first car for young drivers
- Toyota Highlander: A spacious family-sized car with impressive performance
Google (Master Brand) and Sub-Brands
- Google Search: The flagship search engine
- Google Ads: Advertising platform for businesses
- Google Workspace: Suite of cloud productivity tools
- YouTube: A video-sharing platform under the Google brand
Uber (Master Brand) and Sub-Brands
- UberX: Standard and most affordable ride-hailing service for everyday transportation
- UberXL: More spacious version of UberX for groups or customers needing extra room
- Uber Black: Premium ride service that offers high-end vehicles for a luxury experience
- Uber Eats: Food delivery service
- Uber Freight: Logistics and freight service
- Uber Reserve: Pre-scheduled ride service
These are just a few examples of famous consumer master/sub-brands. Identifying these successful examples provides a foundation for exploring how similar strategies apply in the B2B sector.
B2B Sub-Brands
A master/sub-brand structure is common in B2B products. For example, Adobe, HubSpot, and Cisco all offer several tools and software platforms that offer different applications for businesses. Each product line has its own unique sub-brand that enhances the master brand.
Next, let's review a real-life case study about how restructuring to a master/sub-brand architecture benefited one of Phase 3's clients.
Phase 3 Sub-Brands Case Study- FinishWorks and Mohawk Product Brands
FinishWorks and Mohawk had been operating as two separate companies for years before RPM International Inc. decided to merge them. FinishWorks manufactures wood, metal, and specialty finishes, and Mohawk manufactures touch-up and repair products for wood, leather, and vinyl.
While it was evident that Mohawk’s products would belong to the sub-brand, the name for the master brand name was up for debate. Members of the Mohawk team were attached to the Mohawk brand name, which enjoyed strong name recognition, thanks in part to its consumer-facing products. The name Finishworks, on the other hand, implied a broad spectrum of quality finishing solutions, aligning with the company’s long-term strategy.
RPM engaged Phase 3 to thoroughly evaluate the two existing brand names along with a set of entirely new names, using criteria developed in collaboration with all stakeholders. When the team selected FinishWorks as the go-forward master brand, there was a clear rationale and buy-in. To signal a new beginning and broader vision for the brand, we embarked on a comprehensive rebranding, including identity, brand expression, and key messaging.
The team developed a new unique identity for FinishWorks that embraced Mohawk’s brand equity. In turn, Mohawk maintained its logo, color palette, and messaging, but it was closely tied to the new FinishWorks brand identity. The new master/sub-brand framework merged two established brands and breathed new life into their stories and brand identities. The latest, innovative expression differentiates their unique positioning and sets them up for significant future growth.
“The overall response has been very positive thus far, and none of what we’ve accomplished would’ve been remotely possible without you and your awesome team.” - RPM-ICG Director of Content Marketing & Communications.
Sub-Brand Strategy Overview
Strategic brand architecture, like a master brand/sub-brand structure, ensures consistency and clarity in branding and fosters customer loyalty and trust. Choose a master/sub-brand structure with a clear understanding of your company's history, goals, and objectives. Also, consider the needs of your target audiences. A well-implemented master/sub-brand approach should support your overarching company goals and drive growth.
When to Consider a Sub-Brand Strategy
Here are a couple of specific times in a business lifecycle when a master/sub-brand strategy should be considered.
Acquisition
As your business grows by buying other companies, you may need to restructure your brand architecture. This is necessary if you want to expand your product or service offerings. Introducing sub-brands allows you to address new market segments or product lines while leveraging the established reputation of your existing company.
Expansion into Other Markets
A sub-brand can target a market segment the master brand hasn’t entered. This can open new opportunities. Developing a master/sub-brand architecture can maximize the value and potential of your company's portfolio by tailoring sub-brands to diverse markets or needs while still maintaining a sense of customer loyalty and trust with your master brand.
New Product/Category Development
A master brand can also expand its portfolio by developing new product lines or a whole new category of products as sub-brands. These new products or categories should align with your master brand's values and mission. If done right, they can generate new revenue streams and target new audiences for your master brand.
Rebranding or Refreshing the Brand
If you’re planning to update your brand, consider a master/sub-brand structure. It can help refresh your image or shift your brand strategy. It’ll also keep the value of your existing master brand. Introduce new sub-brands to represent different aspects of your refreshed brand, appealing to diverse customer bases. Our case study about Barnsley Resort is an example of implementing a master/sub-brand strategy during a rebrand.
Having explored real-life examples, let's now review the benefits of a master/sub-brand strategy.
What are the Benefits of a Sub-Brand?
Sub-brands offer significant value by enhancing your master brand's reach and supporting its identity. Here’s how.
Increased Engagement and Loyalty
Sub-brands deliver tailored value and services, deepening engagement with existing customers. Sub-brands build loyalty by meeting a targeted audience's specific needs. They offer personalized solutions within the brand's wider portfolio.
Attracting New Customers
Sub-brands can open doors to new customer segments and revenue streams. They allow your master brand to diversify your offerings and appeal to a broader audience. This can be particularly beneficial when entering new markets or introducing new products.
Changing Perceptions and Meeting Expectations
When expanding into new markets, sub-brands can help reshape consumer perceptions and align with their expectations. This strategic approach allows for a tailored market entry that resonates with regional preferences and cultural nuances.
Building Brand Awareness
A successful sub-brand can increase the visibility of your master brand by attracting attention from consumers who might not have engaged with your company otherwise. It can also bring renewed attention and excitement to a mature brand. This expanded reach can boost your overall brand awareness and foster additional interest in your company.
Clarifying Product and Service Differentiation
Sub-brands help you differentiate diverse products or services in your portfolio. It allows customers to see and grasp each sub-brand's unique value. This makes your overall brand more consistent and easier to engage with.
Good sub-brands help master brands boost engagement and loyalty. They do this by offering more value and services to current customers. They can also attract new customers and expand your business into new revenue streams. A sub-brand can be a valuable tool to change the expectations or perceptions of customers. By leveraging sub-brands, you can optimize your brand to better meet the needs of more customer segments and expand your reach.
Marketing Strategy for Sub-Brands
Developing a marketing strategy for sub-brands takes careful thought and a clear understanding of your goals. It's important to evaluate how each sub-brand aligns with your master brand's values and marketing strategy. In addition, it's vital to develop a distinct identity and attributes that set each sub-brand apart from both the master brand and the competition. This starts with a thoughtful and strategic sub-brand name.
Sub-Brand Name Creation
Naming your sub-brands requires careful thought. It must align with your master brand, appeal to your audience, and be distinct. The right name enhances your sub-brand's identity and supports your master brand's business goals.
Start by choosing a name that reflects your master brand's core values while addressing the target audience's specific needs. The name should be distinct and memorable to avoid confusion with your master brand or competitors. Also, select a name that allows for future growth and is culturally sensitive to your target audience. Simplicity is key—opt for a name that's easy to pronounce, spell, and remember. Finally, check for trademark availability to avoid legal issues. Following this practical advice, you'll create a sub-brand name that augments your market presence and resonates with your audience. With a solid foundation in naming your sub-brands, the next step is to effectively communicate and visually represent your sub-brands through marketing.
Sub-Brand Messaging, Visual Identity, and Channel Strategy
Your sub-brand marketing strategy should be consistent with your master brand's messaging, tone, and visual identity. It should never undermine or diminish the master brand in any way.
Each sub-brand should have its own messaging and visual identity. Your sub-brands’ target audiences should tell you which marketing and communication channels to use, even if different from the master brand. Of course, any marketing decision should also depend on your business goals. By carefully thinking through these factors, you can create successful marketing strategies that grow a sub-brand and bolster the master brand at the same time.
Sub-Branding for Business Success
Strategic sub-branding is a powerful tool for companies of all sizes. It can help them meet diverse customer needs and expand their market reach. By creating distinct sub-brands that connect to a master brand, you can enter new markets, reach different consumers, and launch new products without diluting the core brand's identity.
The Phase 3 brand team are experts at developing effective brand architecture strategies, including a master/sub-brand strategy, for clients. For more information, contact us today.