Corporate Umbrella


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.

  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. Stock Analysis

    How Dow Chemical (DOW) Makes its Money

    An in depth look at how Dow has made itself vital to so many industries in its 118 year history.
  7. Stock Analysis

    The Evolution of How GE Makes its Money

    GE is a 123-year-old blue chip mainstay. While annual revenue numbers are typically constant, their configuration is changing rapidly.
  8. Economics

    What's a Conglomerate?

    A conglomerate is a corporation that’s comprised of several different independent businesses.
  9. Investing

    Charles Koch Biography

    Charles de Ganahl Koch is the CEO and co-owner of Koch Industries, an oil and industrial conglomerate that ranks as one of the largest privately held companies in America. While he and his company ...
  10. 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.
  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. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  3. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  4. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  5. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  6. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
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!