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. Masterbrand

    A specific overarching brand name that serves as the main anchoring ...
  2. Brand

    A distinguishing symbol, mark, logo, name, word, sentence or ...
  3. Tax Umbrella

    The use by a company of the losses it sustained in previous years ...
  4. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  5. Umbrella Personal Liability Policy

    A type of insurance policy that provides excess coverage above ...
  6. Private Brand

    A brand placed on products that a large manufacturer has created ...
Related Articles
  1. Insurance

    Umbrella Insurance: You May Need It, Too

    If you have assets to protect – or just run a business from home – you could be unpleasantly surprised at how much you need umbrella insurance.
  2. Taxes

    6 Ways Small Businesses Can Save On Taxes

    Save on year-end business taxes with these ideas: incorporate in another region, create an umbrella company, sell inventory and make smart investments.
  3. Small Business

    How Companies Create A Brand

    We take a hands-on approach to creating a brand, and see what it can mean as an investor.
  4. Small Business

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  5. Insurance

    Do You Need Umbrella Insurance For Household Help?

    Homeowners insurance may not be enough – say, if your nanny sues for damages after an accident. That's where umbrella coverage comes in.
  6. Insights

    Tech and Auto Companies Dominate World's Most Valuable Brands List (AAPL, GOOG)

    Brand consultancy firm Interbrand released its 2016 ranking of the most valuable brands in the world, and technology and automotive brands dominated by holding a combined 29 positions. According ...
  7. Small Business

    Understanding Brand Identity

    A brand identity comes from visible elements, such as the company name, the design of its logo, its packaging design, and colors, tagline and typeface.
  8. Managing Wealth

    How You Can Protect Assets With Umbrella Insurance

    Here's why protecting your assets from litigation via umbrella liability insurance is a good idea.
  9. Small Business

    9 Brands Resurrected Into Household Names

    All of these brands saw a dip in their popularity, only to have a revival to even greater heights.
  10. Insurance

    How You Can Protect Your Assets With Insurance

    Here's how carrying the proper levels of auto and umbrella insurance will keep your assets protected, no matter your net worth.
RELATED FAQS
  1. Why is brand equity considered an intangible asset?

    Brand equity is an intangible asset because the value of the brand is not a physical asset and is instead determined by consumer ... Read Answer >>
  2. How does brand image and marketing affect market share?

    Building a positive brand image is a must for companies that want an edge over the competition. Learn how marketing and branding ... Read Answer >>
  3. What are some of the benefits of positive brand equity?

    Learn how having positive brand equity enables companies to make a higher margin on sales and spend less money on marketing ... Read Answer >>
  4. Are there any regulations on transfer pricing?

    Learn about transfer pricing, its role in intra-business calculations, and how the U.S. government regulates transfer pricing ... Read Answer >>
  5. How does limited government affect corporate citizens?

    Read about the role of consumers and governments, especially limited governments, in supporting or requiring good corporate ... Read Answer >>
  6. What advantages do corporations have over privately held companies?

    Learn about the chief advantages that publicly traded corporations have over other forms of business organizations, most ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  5. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  6. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
Trading Center