The concept and features of umbrella brand in marketing theory
Fluctuations in the dynamics of markets and the increasing competition on the global level leads to ever-increasing role of the brand as a valuable intangible asset of the company, directly affecting its capitalization in general. Brand managers are looking for ways to reduce the cost of production of new goods at lower risk of their failure on the market. The most popular way of introduction on the market of a new product is the use of an existing brand in a new product category, market or sector. The use of such strategies in brand management is called "the strategy of brand extension". The implementation of this strategy can significantly improve the effectiveness of the new product on the market, because it reduces the cost of its implementation and increases the chances of success of the adoption of the new product's target audience. Ceteris paribus economic cost of production of a new product under individual brand will be much higher than when using the parent of the new item. The result of using this strategy is the creation of an umbrella brand, uniting under a different product categories. The author gives the definition of "umbrella brand" and shows its difference from similar terms. The results of theoretical studies of the proposed marketing literature has enabled us to give a clarifying definition of the umbrella brand. The article also identified the main differences between an umbrella brand and an individual brand. This separation of the two concepts illustrates the achievement of different goals of brand management. In the final part of the article there is considered an important aspect of brand management - the use of the brand expansion strategy. One of the results of the use of this management decisions is launching into a new market umbrella brand.