I don’t know how this happened. Maybe a consultant start spewing that this is a good idea. Or some article got published that this is a good idea. Multibrand companies recently has started a huge effort toward building the equity of the parent brand. For example, Nestle and Unilever had been tagging their commercials.
If one were to examine the relationship of parent brand to its house of brands, one must look at P&G. P&G with its house of brands is a powerhouse in the consumer goods space. It also has a lot of advertising dollars. This affords P&G to actually have commercials about P&G. You’ve seen them say during Olympics.
Recently, riding on New York subway, I notice another campaign by P&G that was actually designed to feature its house of brands. The campaign centered around the idea that P&G brands are tougher.
However, I still wondered, does this type of messaging works? I think the idea of building the parent brand is to provide scale. Like any operations, if the various child brands can share the assets of the parent brand, there is efficiency to be gained. For example, if several brands can be manufactured in the same plant. Or several brands can use the same research and development, but just put its own twists. So, why not marketing?
I think scale can definitely be applied to marketing, but it’s not as easy as just putting a logo. If the parent brand was to benefit the child brands, then the parent brand needs to add value. A good example is SC Johnson. SC Johnson has been building equity into the parent brand for years. SC Johnson, a Family Company, is a tagline that has been used for years. This parent brand execution adds value in telling consumers that no matter which brand we’re talking about, if it’s part of SC Johnson, it’s going to be about protecting your family, because SC Johnson is all about families.
If you had problems viewing the videos, please following these links: Nestle commercial http://bit.ly/1inxC7y Unilever commercial http://youtu.be/D7xiIn-79fo, P&G commercial http://youtu.be/57e4t-fhXDs, SC Johnson commercial http://youtu.be/coG-86rqeGI