Creating Sub Brands: Strategy & Examples

A sub-brand, also known as a brand extension, is a secondary brand name or trademark created by a company to differentiate a product or service from its parent brand. Sub-brands can be created for various reasons, such as targeting a specific market segment, introducing new products or services, creating a separate brand identity, leveraging the parent brand’s reputation, diversifying the portfolio, and creating a sense of exclusivity. Creating a sub-brand can be a powerful way for a company to expand its product or service offerings and reach new customers without diluting the parent brand’s image. This article will explore the reasons and strategies behind creating sub-brands and provide examples of companies successfully using this approach.

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01 To target a specific Market or Customer Segment

A company may create a sub-brand to appeal to a specific market segment that differs from the parent brand’s target audience. For example, a company that makes high-end luxury cars may create a sub-brand that makes more affordable, entry-level cars to appeal to a different market segment.

Examples of a brand and a product that uses this strategy:

a) Brand: Nike, Product: Nike Skateboarding

Nike is a well-known brand that produces athletic footwear, apparel, and accessories. The brand targets athletes and fitness enthusiasts, focusing on performance and innovation. There are many different sub-brands under the Nike…