DEFINITION of 'Masterbrand'
A specific overarching brand name that serves as the main anchoring point on which all underlying products are based. Masterbranding attempts to create a strong association between a company's products and what the brand represents. While individual products will always have their own names/brands, it is the masterbrand that contributes to the consumer's belief that the product is different compared to all others in its class.
BREAKING DOWN 'Masterbrand'
For example, Intel is one masterbrand with several subsequent product offerings such as Pentium, Centrino and Core Duo. While each one of these products offers a different level of performance, it is the Intel brand that allows a consumer to believe that the chip he or she purchases will have the same high level of quality as all other Intel products.
Successful implementation of a positive masterbrand is one way for a business to create an economic moat.