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    Sub-branding occurs when businesses launch secondary businesses, with their own unique logos and branding, underneath the parent or primary.

    What Is Sub-Branding?

    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.

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