Social Media and Branding: Umbrella Brand Benefits

A striking fact about social media marketing is the fact that the market moves very fast. Social media creates a big scale. Scales produce the amazing speed found in the modern market. The way to create a social media brand is to place your product first. The size of the market evolves it. This means that the product will be relocated. As the brand continues, relocation creates a new position.

One example is how the early automotive industry was branded. The two great giants of this era were Henry Ford of the Ford Motor Company and Billy Durant, the founder of General Motors. Both understood that the original market relied on low prices. Durant also felt that low prices needed different brands to target different groups. Henry thought price was the key and created a world-class brand on the Model T. For some time Henry’s bet was correct.

The market has evolved over time. As the decade of the 1910s progressed, the middle class developed. As more resources became available, people began to demand more than the low prices of cars. Fluctuations in income have created different goals for the car. This has created the need to brand cars in different ways. Fortunately, in the case of GM, Billy Durant created these various brands. In the General Motors model, Chevy was an entry-level for low-income earners. Ponitac was at the next level. This is for people who start work and start receiving early career promotions. A mature mid-career is Oldsmobile. For those who know on the fast track, there is Buick. Finally, there is a Cadillac for the people who made it.

I think the GM model is the model that modern social marketing should follow. Different income groups define products in different ways. Brands help them define themselves. This is the beginning of the so-called “umbrella” brand. This is multiple brands of the same product under the roof of one company. It is this strategy that allowed General Motors to overcome the seemingly insurmountable lead by Ford in the 1920s and become an outstanding brand of automobiles. What are the advantages of having an umbrella brand compared to having only one big brand like the Model T?

As with General Motors, the big benefit is market growth. Numbers have strengths. Many brands, such as the GM family, are always associated with the General Motors brand rather than a single General Motors “car.” As with GM, one brand cannot control the entire market. This is Albert Sloan’s genius. It was Albert Sloan who taught marketers the importance of targeting, segmentation, differentiation and branding. This is in sharp contrast to Ford’s claim that any color can be black.

Multi-brand prevents brand extension. In 1923, there were many car companies, most of them under one brand. By having a multi-brand, Mr. Sloan consolidates the market, discouraging small struggling companies from leaving the market without expanding the brand and allowing General Motors to focus on Ford. ..

Multi-brand protects your brand image. Everyone knows that Chevy, Ponitac, Olds, Buick, and Cadillac are the brands of General Motors. Each car contributed to the GM image. Ford’s only brand of Model T worked for Ford. Since Sloan has only one brand, he was able to describe the Model T as a “farmer made for the farmer” brand.

Dean Hamburgon

dnhambleton@gmail.com