Corporate Umbrella

AAA

DEFINITION of 'Corporate Umbrella'

A masterbrand that provides structure for and lends credibility to other brands belonging to the same corporation. The corporate umbrella drives consumers' purchase decisions and transfers brand value to new products and services.

BREAKING DOWN 'Corporate Umbrella'

Companies use the corporate umbrella and the company's credibility when launching new products and services because the corporate umbrella helps transfer brand value to sub-brands. While consumers may be unfamiliar with the sub-brands and associated products, they will recognize the corporate umbrella brand.


For example, a diversified conglomerate soft drink producer can place its image on other items it produces, although each of those brands could be considered to be somewhat distinct within the corporate structure.

RELATED TERMS
  1. Brand Extension

    A common method of launching a new product by using an existing ...
  2. Brand Recognition

    The extent to which the general public (or an organization's ...
  3. Brand Management

    A function of marketing that uses techniques to increase the ...
  4. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  5. Marketing Campaign

    Specific activities designed to promote a product, service or ...
  6. Masterbrand

    A specific overarching brand name that serves as the main anchoring ...
Related Articles
  1. Active Trading

    Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  2. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  3. Active Trading

    Economic Moats: A Successful Company's Best Defense

    Find out why some companies thrive while others flounder.
  4. Economics

    Selecting A Second-Tier Company

    Find out why an industry's "little guys" can be big winners.
  5. Investing

    3 Secrets Of Successful Companies

    Make smart investments by spotting up-and-coming success stories early.
  6. Investing

    Is Alphabet the Next Berkshire Hathaway?

    Google has made headlines for self-driving cars and biotech products, but the most profitable part of the business remains the advertising connected with its search engine.
  7. Stock Analysis

    Warren Buffett's Latest Bet: The Riskiest Yet?

    Warren Buffett just made the biggest — and possibly riskiest — acquisition of his career.
  8. Investing News

    How Google's Transformation to Alphabet Will Impact Shareholders

    Google will retain search, ads, maps, apps, YouTube and Android, according to the company’s SEC filing, while Calico, Nest (interconnected thermostats and smoke detectors), Fiber (broadband and ...
  9. Investing News

    Why Google Became Alphabet

    Why did Google create Alphabet? Will it change the company's DNA or is it a mere rechristening?
  10. Investing

    5 Conglomerates with Exposure to the Caribbean

    These five well-diversified conglomerates play a major role in the economies of the Caribbean.
RELATED FAQS
  1. What is the difference between a green field and a brown field investment?

    Green-field and brown-field investments are two different types of foreign direct investment, or FDI. Green-field investments ... Read Full Answer >>
  2. Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history?

    AT&T had a history reaching back to 1885 and, as a government-supported monopoly, was a highly profitable company. Colloquially ... Read Full Answer >>
  3. What are the differences between affiliate, associate and subsidiary companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. In most cases, ... Read Full Answer >>
  4. Are domestic and foreign subsidiaries included on a company's financial statements?

    A subsidiary is a company that is controlled by another 'parent' company. The subsidiary acts and operates like its own entity ... Read Full Answer >>
  5. How do businesses decide whether to do FDI via green field investments or acquisitions?

    When businesses decide to expand their operations to another country, one of the more important dilemmas they can face is ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  2. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  3. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  4. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  5. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
  6. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!