February 23, 2024

What Is a Sub Brand?

If you've ever noticed that a new and unique-looking brand is actually owned by another well-known company, you've encountered a type of branding strategy called sub brands. These subsidiary brands don't replicate the parent company's primary branding, but rather work hand-in-hand to offer a different product or serve a different audience.

Subbrands are a powerful way for businesses to build deeper connections with their customers and expand into new markets at the same time. For example, Volkswagen's use of sub brands (such as Audi, Porsche, and VW) allows them to target specific audiences that may not be reached by the main business, while keeping the companies cohesive.

As a company grows, it will need to determine how its branding house will be structured. This will involve deciding when and how to create new identities that connect with a parent company's core values, as well as which niches are worth investing in.

Investing in sub brands can also mean that the primary business will have to dedicate more resources to a new offering, and this can put a strain on current sales, marketing, and other operations. If the new offering isn't successful, it could also damage the company's reputation.

Sub brands aren't always well-received by existing customers, as they can change a company's identity and feel like a departure from the original business. For instance, when a small local band decides to go national and change their sound, there'll likely be some die-hard fans who follow them through the transition, but many will not enjoy the new direction and may choose to stop supporting the band altogether.

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