“I am setting up a new business portfolio but it’s a subset of the group company. Can you help me think of a great brand name for this new portfolio?” – A very common request we hear from companies and business leaders as their businesses expand. This blog post explores and explains what it means to have an umbrella brand.
The weekend is approaching and you are the host of a party. You have decided to go all out by starting off with a super theme. You decided on “Fantastic Fiesta.” and now, you have to think about the food menu, music, and decoration – tacos, pizzas, sushi, salsa, and even a bit of good old funk music to spice it up a little. It’s a crazy mix, but you say to yourself “Yes, it’s a nice mix and they are all under the umbrella of the Fantastic Fiesta. This is an analogy of an umbrella brand.
In this analogy:
Fantastic Fiesta → umbrella brand: the overarching theme that ties everything else together.
Tacos, pizza, sushi, etc. → the different products or services under that umbrella: each with its unique flavor but contributing to the overall party experience.
Your guests → your target audience or customers: they recognize the Fantastic Fiesta theme, and if they enjoy the “pizza”, they will be more willing to try the “sushi” because they trust your ability to throw a fantastic party.

Umbrella branding (also known as family branding or corporate branding), is a marketing strategy in which a company uses a single brand name to market and sell a variety of related products or services. Instead of creating individual brand names for each product or service, the company leverages the strength and recognition of a single, overarching brand. This umbrella brand serves as a common identity for all the products or services offered by the company.
The idea behind umbrella branding is to create a cohesive and consistent brand image that consumers can easily recognize and associate with a particular company. This approach is particularly effective when a company offers a range of products or services that share common characteristics, values, or target audiences.
Advantages of umbrella branding include:
Cost Efficiency: Managing and promoting a single brand can be more cost-effective than building and maintaining multiple brands.
Brand Recognition: A strong umbrella brand can enhance overall brand recognition, making it easier for consumers to recall and trust products or services associated with that brand.
Cross-Selling Opportunities: Consumers who have a positive experience with one product under the umbrella brand may be more inclined to try other products from the same brand.
Consistency: Umbrella branding allows for consistent messaging and brand image across all products, reinforcing the overall identity of the company.
Efficient Marketing: Marketing efforts can be concentrated on promoting the umbrella brand, and streamlining promotional activities.
However, there are also potential risks associated with umbrella branding. If one product or service within the umbrella brand experiences negative publicity or fails, it could potentially harm the reputation of the entire brand. Additionally, if the products or services are too diverse, consumers may find it difficult to associate them with a common brand identity.
In the late 1990s, PepsiCo attempted to extend its umbrella brand into the breakfast market. Products like “Pepsi A.M.” and “Crystal Pepsi” were introduced as part of the Pepsi brand’s expansion into different dayparts and categories. These products failed to gain traction. Consumers were not receptive to associating Pepsi, known for its role as a cola and snack brand, with breakfast items. The lack of coherence between the umbrella brand and the new product categories contributed to these failures. Needless to say, Pepsi stopped this approach and never returned to the breakfast market.

Build an umbrella brand to convert your target audience to customers
Overall, umbrella branding is a strategic choice that depends on the nature of the company, its product or service offerings, and the preferences and behaviors of its target audience. In summary, umbrella branding is similar to throwing a party with a catchy theme where everything is connected under one big, exciting umbrella. It makes it easy for your guests (target audience or customers) to remember, enjoy, and trust in the fantastic experience you provide, no matter which elements they’re indulging in!
Avante Strategies has decades of experience building and launching umbrella brands for companies. Contact us for a complimentary 45-minute chat to explore more.