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Sub-branding occurs when businesses launch secondary businesses, with their own unique logos and branding, underneath the parent or primary.
When brands want to extend their market presence, they can either work to expand their primary market share or create or acquire a sub-brand. When sub-branding, the primary business will create a secondary brand that connects to the original brand logistically and financially but has its own unique branding.
Businesses typically create sub-brands to reach a larger consumer base. Disney, for example, is a mega-parent brand with extreme global reach. But they’ve created or acquired brands like Marvel and the History Channel to reach specific niche customers. In this example, the sub-brands have their own products, branding, and aesthetics, but they contribute financially to the overall growth of the Disney brand.
Sub-branding can be a great tactic for expanding reach, building customer loyalty from different segments, and driving sales. Because it requires significant start-up resources, however, it can be a costly effort, especially for smaller businesses.