the gist
What is a sub brand and when do you need one
A sub brand is a separate brand that lives under your main brand, with its own name, identity, and audience. You need one when you're targeting a different market, launching a product that doesn't fit your current brand, or starting fresh without losing the credibility you've already built.
Sub brands can be a great way for small businesses and solopreneurs to create a new identity and reach new markets. They can be a crucial part of your marketing strategy — and expand what your parent brand can offer to attract and convert your target audience.
In this blog post, we will look at what a sub brand is, the difference between it and your main brand, when you should create one, and examples of some great sub brands.
Ready? Grab a tea, close the other tabs and let's get started!
What is a sub brand?
A sub brand is an extension or subsidiary of your parent brand, the master brand, or parent company, that has its own name, distinct identity, and positioning. It targets a new audience in new markets or launches new product lines without diluting your main brand.
What is the difference between a brand and sub brand?
Your parent brand is what people think of when they hear your company name. Also called the master brand, it's what you're known for and what people associate with your company.
Your sub brand is a new brand — an extension of your parent brand with its own logo, own products, and a distinct color palette. It stays connected to the master brand, drawing on the parent company's credibility.
What is the difference between a sub brand and brand extension?
A brand extension uses the parent brand name for new product lines. A sub brand creates a distinct identity — a secondary brand within the company's brand architecture. Brand extensions stay closer to the master brand, while a sub brand builds its own market presence in other markets.
For example, FedEx created FedEx Ground as a sub brand for ground shipping. Clorox launched disinfecting wipes as a brand extension where the parent brand stayed front and center. And Virgin Group created Virgin Mobile as an entirely new brand for a different market with its own identity.
Do small businesses need sub brands?
Now, if you're a solopreneur or have a small business, you might be wondering if having a sub brand is worth it. Don't worry, I've got you!
Sub branding can be a powerful tool for small businesses to expand their reach, grow their customer base, and build customer loyalty among consumers in a different audience. As a strategy, it gives your company a distinct market presence in a different market segment — reducing confusion about what your brand stands for.
However, it's not right for every business.
If you're thinking about creating a sub brand, do your research first. A rushed launch leads to brand confusion and dilutes the main brand. Plan before you build.
Creating a sub brand takes effort, but the payoff is worth it. Done right, it helps you reach new customers and grow your company.
But before you even get started, ask yourself whether you need a sub brand in the first place. Let's explore 3 reasons why you should create one for your small business next.
When should you create a sub brand?
There are a few different instances when creating a sub brand might be a good idea for your business:
When you want to target a new market:
If you're looking to expand into a different market, a new sub brand can help your company reach new customers and consumers in other markets. By creating a brand extension tailored to a new audience, your strategy can focus on their specific needs — and your success depends on how well you understand what those customers want.
When you want to launch a new product or course:
If you're launching a new product that's different from what you currently offer, it makes sense to create a sub brand for it. This keeps the parent brand clear while letting the new product build its own audience.
When you want to rebrand:
If you're looking for a fresh start, creating a sub brand can be a great way to do it. This allows you to keep the equity of your existing brand while creating something new.
Have questions about rebranding? Have a read of a blog post that might help you here: How to rebrand your business.
Examples of successful sub brands
Now that we've looked at all the questions surrounding sub branding, here are a few examples of great sub brands:
Starbucks
Starbucks' Teavana tea brand is another great example of a sub brand done right.
When they acquired the company in 2013, Starbucks rebranded the Teavana line to focus on premium teas and healthy habits. This allowed them to enter the $40 billion global tea market and reach a new customer base.
The Teavana brand now includes everything from teabags to ready-to-drink bottles of tea.
Apple
Apple's iPod is another great example of a successful sub brand.
When it was first launched in 2001, it revolutionized the music industry and quickly became one of the most popular portable music players on the market.
Apple eventually expanded the iPod to include other products like the iPhone and iPad, but it remains one of their most iconic brands.
Nike
Nike's Jordan Brand is one of the most successful sub brands out there.
It was created in 1984 as a way to market basketball shoes and apparel specifically to the African American community.
Today, it is a multi-billion dollar business that includes everything from shoes to clothing to accessories.
Harley-Davidson
In 2019, Harley-Davidson launched LiveWire, their first electric motorcycle.
In order to make sure that this new product didn't dilute their existing brand, they created a sub brand for it. This allowed them to target a new market (electric vehicle enthusiasts) without alienating their existing customer base.
Estée Lauder
Estée Lauder, the cosmetic company, has a sub brand called MAC Cosmetics.
MAC is targeted toward a younger demographic and offers products that are more edgy and unique than what Estee Lauder typically offers. This has helped Estee Lauder reach a new market and expand its customer base.
Coca Cola
Coca Cola is another example of a company with a successful sub brand.
Their sub brand, Diet Coke, is one of the most popular diet sodas on the market. Diet Coke has helped Coca Cola reach a new market of health-conscious consumers and has become a billion dollar business in its own right.
Google is another example of a company that has used sub branding to expand its reach.
They have created products like Google Maps and Gmail that have become household names. By creating these sub brands, Google has been able to branch out into new areas and become a leader in many different industries.
Warby Parker
Another great example is Warby Parker, the eyewear company.
They have created a sub brand called Prescription Check which allows customers to easily order new glasses or contacts from their phone. This has been a huge success for them and has helped Warby Parker grow their customer base.
Hubspot
HubSpot, the inbound marketing software company and a very successful brand, has created two successful sub brands: Sidekick and AppCues.
Sidekick is their email tracking tool while AppCues helps businesses create on-boarding and engagement experiences for their users. Both are successful in their own right and help to round out HubSpot's offerings.
How to start a sub brand: Creating your brand architecture
If you're planning on creating a sub brand, the first thing you need to do is create your brand architecture. This will help you determine what your main brand and sub brands will be, and how they will work together.
There are two ways to create a brand architecture:
The house of brands model:
In this model, each brand operates independently from the others, without mention of the parent company. This can be helpful if you want to create a sub brand that has a different brand identity from your main brand.
Companies — including established brands that have grown into multiple brands in different industries or niches may prefer this sub branding strategy. It's the right move when each brand needs its own identity to reach a distinct audience.
A sub brand can also be known as an endorsed brand. Here the brand has its independent brand identity but is grouped under a strong parent brand for prestige and credibility. This can improve brand loyalty and make it much easier to build brand equity for an entirely new brand.
An example of a house of brands model is Unilever.
The branded house model:
In this model, all of your brands operate under one umbrella. Because of this, we also call the parent brand the master brand (or umbrella brand). The master brand sets the strategy for every sub brand in the portfolio.
This strategy can be helpful if you want to build several sub brands similar to your main brand. A great example is Virgin.
Creating your sub brand: the process
Step 1
Once you've decided on your model, choose a name for your sub brand. This is the first thing people see when they encounter your brand — make it memorable and reflective of what the original brand and this new brand stand for.
Step 2
After you've chosen a name, create a visual identity for your sub brand. This means choosing a logo, color scheme, and font tailored to your target audience. Give the sub brand enough resources to build its own success as a new brand connected to the parent brand.
Step 3
Finally, decide on your marketing strategy to promote your sub brand. This includes everything from your website to social media to customer loyalty programs. The right approach depends on your audience and the customers you want to reach.
Start building your sub brand
Now that you know all about sub brands and how to create one, it's time to put these tips into action. Whether you're building a brand extension or launching something new, a strong sub brand strategy can drive future growth and long-term success. If you're thinking about creating a sub brand for your business, go for it!
It can be a great way to expand your reach and grow your business.
Need help with your sub brand strategy? Start here.
Want to do it yourself? Get Your Brand Together walks you through every step.