When it comes to "brand management," most marketers immediately think of the concept of "family branding." This refers to creating a set of brands that look like they belong to the same family. Many believe that for effective brand management, companies should build a "family" of brands—each with its own distinct identity but still sharing a common essence.
Under this philosophy, countless "family brands" have emerged. For example, Wrigley has "Green Arrow," "Yellow Arrow," "White Arrow," and "Wrigley Coffee." Johnson & Johnson has "Tainuo," "Tynoline," "Tyanoan," and "Tenuojian." Wuliangye Group also developed a wide range of brands such as "Wuliangye," "Wuliangchun," "Wuliangol," "Wuliangshen," "Yubo," "Youcong," "Yuqiang," and "Excellent Love." At first glance, these family brands seem well-managed and cohesive. But in reality, the author argues that this so-called "family" approach is a major misunderstanding of true brand management.
This article will explore why family branding can be problematic and how it often leads to confusion rather than clarity. The discussion will focus on three key issues: the dilution of main brand positioning, the difficulty in differentiating between brands, and the failure to create meaningful brand identities. Let’s dive into each one.
First, family branding can weaken the core positioning of the main brand. A strong brand needs a clear and distinct identity in the market. Positioning is central to marketing, and over the past half-century, positioning theory has dominated the industry. However, when a company creates multiple similar brands under the same umbrella, it risks diluting the original brand's image.
Take Wuliangye as an example. While it and Maotai are both considered national wines, Wuliangye took a different path by adopting a family brand strategy. It introduced several brands like "Wuliangchun," "Wuliangol," and "Wuliangshen," expanding from high-end to low-end products. This created a confusing brand family where consumers couldn’t easily distinguish between the different offerings.
As a result, many began to question what made "Wuliangye" different from "Wuliangchun" or "Wuliangshen." This blurred the perception of the original brand, weakening its position in the minds of consumers. Meanwhile, Maotai consistently maintains a premium image, reflected in its much higher net profit margin compared to Wuliangye.
In recent years, Wuliangye has started to move away from this model, cleaning up some of its weaker sub-brands and focusing more on independent branding. Some like "Jinliufu" have begun to carve out their own unique positions. However, the transition is still ongoing, and the road to true brand differentiation remains long.
Second, family brands often fail to clearly differentiate themselves in the eyes of consumers. Marketers may believe that consumers will understand the subtle differences between brands, but in reality, these brands tend to blend together.
A good example is Wrigley’s "Green Arrow," "Yellow Arrow," and "White Arrow." While the company sees them as distinct, consumers often view them as just variations in packaging color. As a result, these brands don’t effectively represent different product categories or customer needs.
Wrigley eventually realized this mistake and shifted toward independent branding. They launched new names like "Yida" for sugar-free gum, "Langyi" for smooth and relaxing gum, "Jinlang" for cool and refreshing gum, and "SUGUS" for Swiss-style candy. Each brand now has a clear identity and purpose.
If Wrigley had continued with family branding, using names like "Pink Arrow" or "Zig Arrow" to represent different product lines, would they still feel like chewing gum? Probably not. So, it’s important to avoid trying to force differences within a family brand structure. Instead, use independent branding to clearly define each product's role in the market.
In conclusion, while family branding may seem like a logical approach, it often leads to confusion, diluted brand identity, and missed opportunities. Companies should instead focus on building strong, independent brand identities that resonate clearly with consumers.
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