When should you NOT use an Umbrella Brand Strategy?

Umbrella brand strategies are commonly used by businesses to create a unified brand identity and position themselves in the market. However, there are times when using an umbrella brand strategy can be a bad idea and could actually lead to a decrease in sales. In this article, we’ll explore when you should avoid using an umbrella brand strategy.

First, if your product or service offerings are too diverse, an umbrella brand strategy may not be the best choice. When a business has a wide range of products or services, each one may have a unique target audience and benefit from its own branding. Using an umbrella brand strategy may make it difficult for customers to see the differences between the various offerings and could result in a decrease in sales.

Second, if your product or service offerings don’t have a clear connection to each other, an umbrella brand strategy may not be the best choice. When customers see a unified brand identity, they expect that the products or services will have some common traits. If the various offerings don’t have any connection to each other, customers may be confused and could look elsewhere for the product or service they need.

Third, if your product or service offerings are not strong enough to create loyalty and advocacy, an umbrella brand strategy may not be the best choice. When customers are loyal to a brand, they are more likely to purchase additional products and services from the brand. If the various offerings are not strong enough to create loyalty, customers may look elsewhere for the products and services they need.

Finally, if you don’t have the resources to support an umbrella brand strategy, it may not be the best choice. An umbrella brand strategy requires a significant investment of time and money to create, maintain, and promote. If you don’t have the necessary resources, using an umbrella brand strategy may not be the most effective use of your resources.

In conclusion, an umbrella brand strategy can be a great way to create a unified brand identity and position yourself in the market. However, there are times when using an umbrella brand strategy can be a bad idea and could actually lead to a decrease in sales. Before you decide to use an umbrella brand strategy, make sure to evaluate if it’s the best choice for your business.