Subbrand

Subbrand refers to a secondary brand within a larger corporate brand or portfolio. It has its own name and positioning, and often a distinct visual identity, while relying on the parent for legitimacy, distribution, and governance. Subbrands address a specific audience or category without severing ties to the parent.

The purpose is to reach new customer segments, differentiate offerings within a family, or explore different price tiers without rebranding the core. It can protect the parent’s equity by isolating risk and can sharpen category focus for marketing and product development.

Implementation involves a defined positioning, audience, and differentiated benefits. The subbrand may have its own logo, name, and messaging, but remains governed by the parent’s brand architecture and quality standards. Guidelines specify when to use the subbrand, how it complements other brands, and how performance is measured.

Common examples include Toyota’s Lexus, Virgin Group’s Virgin Atlantic and Virgin Mobile, and Nike’s Jordan Brand. These subbrands maintain separate identities while leveraging the parent’s credibility, distribution, and resources.

Risks include consumer confusion, cannibalization of the core brand, or overextension. Successful subbrands are evaluated by awareness, preference, subbrand sales, and cross-brand effects on the parent.