Connect with customers in new ways through mixed branding

Brief definition of mixed branding

Mixed branding is a strategy where a company uses multiple brands or logos under one corporate umbrella. In simple terms, a company offers products under both its own brand and other brands. All these brands may have private labels. This approach allows businesses to target different market segments. For example, a large corporation might own several brands. Each of them will have a unique brand identity and a different audience. It helps the business offer a wider range of products and services to a wider circle of consumers.

Key characteristics of mixed branding

Mixed branding combines the identity of a parent company with the distinct personalities of its individual brands.

• The parent company acts as the main brand which represents core values and credibility. This key brand gives consumers confidence in the entire product range.
• Individual brands within this marketing mix strategy maintain their unique identities, each with its own name, logo, and brand differentiation.

Together, they create a well-rounded and appealing brand portfolio in the market.

Types of mixed branding

What does mixed branding look like in practice? There is no single formula for a multi-brand strategy; it can take various forms. Here are some of the most popular types:

1. Sub-branding

A sub-brand is created with a unique name and identity under a larger parent brand. It usually offers the same products and services as the main brand; however, it stands out on its own. Companies use this approach to target specific customer groups with special offerings. It enables them to satisfy different demands and still benefit from the parent brand recognition.



HP, a global tech company that produces PCs, printers and software, has several sub-brands, such as HP Omen for gaming products and HP Envy for premium laptops.

2. Co-branding

This is a strategy where two or more companies join forces to create a new product or service that highlights the strengths of each brand. Co-branding strategies enhance the value of each company for consumers, and brands have the right to use elements of their partners to complement their own products. It’s a way for businesses to offer something unique and appealing to customers.



Spotify and Uber have partnered to let Uber clients select their preferred music during their ride through the Spotify app.

3. Store branding

This is a practice of creating a unique identity for a retail store. This includes using specific logos, colors, and designs that represent the store's image and values. A strong store brand helps customers recognize and remember the store and encourages them to return. It also sets the store apart from competitors in a busy market.



Instead of traditional car dealerships, Musk opened Tesla stores inside malls – a clever idea to connect customers with the brand ethos.

4. Private label branding

This strategy is often mixed with store branding. However, this approach means products are made by one company but sold under a different brand's name, usually a retailer's. Retailers create their own brands to offer unique items at lower prices and attract customers looking for good deals. It allows retailers to make higher profits and build stronger relationships with their customers.



Lenovo sells various computer accessories that are produced by other manufacturers but carry the Lenovo brand.

5. Location branding

This approach means creating a special product branding for a place, like a city or region. In simple words, the brand sometimes needs to adjust its slogan and even name to feel more familiar and appealing to local consumers. Good location branding can improve how people see the company, build its reputation and increase its market reach.



Pepsi used the slogan “Pepsi brings you back to life” in China, but it literally meant “Pepsi brings your ancestors back from the grave.” So, it was quickly changed to avoid confusion.🙂

Why companies use mixed branding

Customers are the lifeblood of any business. Without them, revenue stops, and growth becomes impossible. So, businesses experiment with various approaches to get access to a wider range of customers. They have started to use mixed branding as a diversification strategy to expand their brand portfolios and better meet consumer needs. This approach has become common in many industries, and companies are actively introducing it to strengthen their brand positioning in the oversaturated market. Brand combination marketing campaigns work in favor of brand trust, and studies show that 81% of consumers need to trust a brand they are buying from.

Advantages of mixed branding

How does a company benefit from this marketing strategy? There are several undeniable pluses:

• Increased brand awareness. You will get access to a wider audience and boost your brand’s visibility.
• Customer segmentation. You can target different customer groups with specific brands that meet their unique needs.
• Lower risk. If one brand faces issues, others can maintain the overall reputation and performance.
• Strong brand equity. Brands working together enhance their value and appeal to customers.

Mixed branding challenges

Sometimes, managing multiple brands through mixed branding can be tricky:

• High resource needs. It takes a lot of money, time, and people to manage different brands, which can be tough for smaller businesses.
• Brand competition. Sometimes, brands within the same company might compete against each other, which can hurt overall profits.
• Brand management difficulties. It is a complicated task to keep each brand consistent in quality and message and fit the overall company’s vision.
• Brand dilution. If you create too many sub-brands that are not clearly differentiated, customers might struggle to tell them apart and build the connections you expect.

Companies using mixed branding

Modern market has plenty of successful multi branding examples:

• T-Mobile + Netflix. T-Mobile offered Netflix subscriptions as a free perk to its customers – a great example of mixed branding. It encourages customers to choose T-Mobile as their provider.
• Facebook. This social media giant owns several sub-brands, including Instagram, WhatsApp, and Messenger.
• Samsung. This South Korean electronics company has several sub-brands: Samsung Galaxy, Samsung Electronics, and Samsung Biologics.

When to use mixed randing

There are several situations when mixed branding strategies might be very helpful:

• Entering new markets. When a company expands to a new geographical or market segment, a sub-brand launch can minimize associated risks.
• Crisis management. If the main brand faces some problems, a secondary brand can help maintain sales and customer trust during recovery.
• Product segmentation. If a company has a wide range of products with different quality levels, mixed branding helps differentiate between premium and budget-friendly options.
• New product testing. A sub-brand can be used to test new products or concepts without risking the reputation of the main brand.

How to implement a mixed branding strategy

Imagine you have a tech company that offers different products and services. To reach more customers, you need a variety of options. That’s where mixed branding comes in.

• Define your core. Identify your main brand's values and strengths.
• Create your buyer portraits. Who will buy from you? Segment your audience.
• Create distinct sub-brands. Give each product line or service its own identity and target audience.
• Develop general branding guidelines. All sub-brands fit well with your main brand and provide a unified experience for customers.
• Monitor and adjust. Track how well each sub-brand performs and make changes as needed to meet your business goals.

Conclusion

A mixed branding strategy is a great way for companies to reach more customers and meet different needs. With unique sub-brands with a strong link to the main brand, businesses can effectively target various groups. This approach increases brand awareness and builds customer loyalty. If you need more insights into branding and its value, do not hesitate to contact DreamX for consultation and professional help. We specialize in branding services across various industries and will help you create your unique branding strategy.