February182012

21. Mother Brands Giving Birth to New Brands

Branding can be a curious thing sometimes, they can make or break a product, they can influence consumers to buy something even if it’s more expensive, and they can give birth to another brand. These new brands can be from the same company but act very differently from the mother brand or they are there for another reason. It’s a smart tactic to create another brand under the same company because they now have two different ways to reach out to two different types of audiences. It’s just a matter of if they are able to effectively make both brands attractive to consumers so they gain more than they lose. The best examples I can think of when it comes to illustrating this type of branding within branding are car companies.

         image

         image

Toyota, an affordable economic car brand, makes Lexus, an expensive flashy car brand. Both of these types of cars are dramatically different in style and price, even though they come from the same company. Toyota’s brand is known for its reliability and how family- oriented its cars are. They have a lot of SUVs that are children- friendly and they have regular cars that are also incredibly children friendly. However, Lexus’ brand is known for is sexy style, fast engine, and price sticker. Lexus has cars that are generally far more expensive than Toyota; they are made for people with more money and who want to show it off. They have more sports cars and smaller, edgier four door cars than Toyota’s four doors. Both types of cars have their own brands that are on opposite ends of the spectrum, yet they are from the same company.

         image

         image

Honda and Acura are another example of one company with two different brands. Honda is similar to Toyota; they make economically friendly and affordable cars. They are bought by those who find their prices attractive, usually the lower to middle class, and they are known for lasting for a long time in the car world. Acura is a pricer version of Honda’s cars. They are mostly four doors but have an edgier feel to their sleek designs. They are also more expensive than Honda but have the same reliability that Honda offers. Those with money who just want a small four door or two door car usually are the ones that find Acura cars attractive because the Honda brand is lower than the amount they want to spend but an Acura is a more amplified and more expensive Honda with the same reliability. Yet another example of a brand within a brand.

These are two different examples of brands that were effectively able to give birth to other brands. They were able to reach out to two different types of audiences, the more economic, family audience (Toyota, Honda) and the upper class, style-driven audience (Lexus, Acura). If companies are thinking about having another new brand to reach out to different consumers, they should look at examples like these to study the tactics they use in order to effectively reach their audiences.

Page 1 of 1