Social media and branding: the benefits of an umbrella brand

Website design By BotEap.comAn outstanding fact about social media marketing is the fact that markets move very fast. Social media creates a large scale. Scale creates the great speed that we find in contemporary markets. The way social media brands are created is that a product is positioned first. The scale of the market makes it evolve. This means that the product is repositioned. As the brand continues, repositioning creates new positioning.

Website design By BotEap.comThe way the automotive industry was rated first is one example. Two great giants of this era were Henry Ford of the Ford Motor Company and Billy Durant, who created General Motors. Both understood that the original market would depend on the low price. Durant also felt that the low price should also have variant brands to target different groups. Henry thought that price was the key and created a world-class brand on the Model T. For a time, Henry’s gamble was the right one.

Website design By BotEap.comThe market evolved over time. As the 1910s progressed, a middle class developed. With more resources available, people began to want more than just a low price on a car. The variation in income created different goals for the car. This created the need for the car to be marked in different ways. Fortunately, for GM, Billy Durant had created these different brands. In the General Motors model, Chevy was the entry level for low-income people. Ponitac was the next level. This is for people who start a job and start receiving early career promotions. For the mature mid-race, there’s the Oldsmobile. For those who know that the Buick is on the fast track. Finally, for the people who have made it, there is the Cadillac.

Website design By BotEap.comI believe that the GM model is the model that modern social marketing should follow. Different income groups define their products differently. Brands help them define themselves. This is the beginning of what is called the “umbrella” brand. These are several brands of the same product, under the roof of a single company. It is this strategy that allowed General Motors to overcome a seemingly insurmountable advantage of Ford in the 1920s to become the preeminent brand in automobiles. What are the benefits of having an umbrella brand relative to having just one big brand like the Model T.

Website design By BotEap.comAs in the case of General Motors, a big benefit is MARKET GROWTH. There is strength in numbers. With many brands, such as the GM family, there is an ongoing commitment to the General Motors brand, rather than the singular General Motors “car.” As in the case of GM, no one brand can control the entire market. This is the genius of Albert Sloan. It was Albert Sloan who taught marketers the importance of targeting, segmentation, differentiation, and branding. This is in sharp contrast to Mr. Ford’s claim that you can have any color you want as long as it is black.

Website design By BotEap.comMultiple brands AVOID BRAND SPREAD. In 1923, there were many car companies, most with a single brand. By having multiple brands, Mr. Sloan was able to consolidate the market and discourage smaller struggling companies from expanding their brand and exiting the market, allowing General Motors to focus on Ford.

Website design By BotEap.comMultiple brands PROTECT THE BRAND IMAGE. Everyone knows that Chevy, Ponitac, Olds, Buick, and Cadillac were General Motor brands. Each of the cars contributed to GM’s image. Ford’s unique branding on the Model T worked against Ford. Because it only had one brand, Sloan was able to present the Model T as a “built by farmers for farmers” brand.

Website design By BotEap.comDean hambleton

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