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.