Brand Strategy — Clear. Concise. No fluff.
If you type the term “brand strategy” into Google’s search bar, you’ll quickly notice that opinions on what exactly a brand strategy entails vary widely. SWOT analysis, brand positioning, and corporate design are just a few of the terms that frequently come up in this context.
Before the “how” can be clarified together with the client, the first step is often to define the “what.” What is a brand strategy, do I even need one, and what forms does it include? To make this topic as transparent as possible for our clients and to show when and why a brand strategy makes sense, we typically use a simple overview—one that we’d like to share with you today.
Brand Strategy – The Definition
The brand strategy can be compared to a set of strategic guidelines aimed at achieving long-term business goals and increasing brand value. Its purpose is to anchor the brand positively and permanently in the minds of consumers and to define the guiding principles for all subsequent marketing activities. The operational implementation that follows is not part of the brand strategy itself but is developed separately within the marketing strategy.
Brand Strategy — The Paths You Can Take
Step one: Understand the battlefield:
Before you chart the course, you scan the field. Strategic brand positioning starts by analyzing the competition. Who else is fighting for the hearts of your customers?
If you’re up against global players targeting similar needs and markets, your brand strategy needs to operate on an international level.
When your audience overlaps with a competitor solving the same needs in a different way — with different products or services — you’re in vertical competition. It’s less about the category, more about the mindset.
But most brands find themselves in a horizontal competition — fighting for the same audience with similar products, offers, and promises. That’s where distinction becomes survival.
Brand Strategy — The Different Models
Once direction is set, the model follows. After defining your competitive stance, the next step is choosing the right strategic model. The model depends on how your brand is structured, what you offer — and where you’re heading next.
The Monobrand Strategy
One category. Multiple brands. Zero overlap.
In a monobrand strategy, products within the same market category — think confectionery, beauty, tech — are launched as independent brands. Each brand has its own identity, positioning, and clearly defined audience. It speaks in its own voice, stands for its own promise, and claims its own space. The umbrella company may step into the spotlight — or stay behind the curtain. That’s a strategic choice. But the focus is always on building distinct brands that don’t compete — they complement.
Example? Ferrero nails it.
With brands like Duplo, Mon Chéri, and Rocher, Ferrero follows a monobrand strategy to perfection.
Each product stands on its own — with a unique story, emotional tone, and target audience. Together, they dominate the confectionery space without ever stepping on each other’s toes.
Advantages
- Tailored target group communication for each brand
- Brand images remain independent from one another
Disadvantages
- High effort, as each brand must be developed and managed independently
- The company or manufacturer may also need a separate presence for corporate topics
The Multi-Brand Strategy
One company. Multiple brands. Maximum market coverage.
If a company offers multiple products within the same category — say, detergents — a multi-brand strategy comes into play. Each product is launched as its own brand, even if it targets the same audience. That means: your brands may end up competing with each other — by design.
Example? Henkel owns the shelf.
With brands like Persil, Spee, and Ariel, Henkel follows a multi-brand strategy — dominating the detergent aisle by competing with itself. Different brands. Same category. One company pulling the strings.
Advantages
- Insights, data, and learnings can be leveraged across all brands
- Large market share through multiple brands
Disadvantages
- Brands compete with each other
- Brands can cannibalize each other
The Umbrella Brand Strategy
In an umbrella brand strategy, products aren’t launched under individual names — they all live under the same masterbrand. Each product can have its own messaging and tone, but everything must align with the core brand. Always. Consistently. Strategically.
Example? Microsoft does it big.
From Office to Xbox to Windows — Microsoft unites powerful products under one name. Different offers, same masterbrand. That’s umbrella branding at scale.
Advantages
- A strong umbrella brand image positively impacts all products
- Less conceptual effort, as each product follows the umbrella brand’s strategy
Disadvantages
- Each product must align with the umbrella brand and its positioning
- Missteps by the umbrella brand affect the entire product portfolio
The Family Brand Strategy
When products belong together, so do their names. If a company offers several products within the same category — say, cosmetics — they can be grouped under a single family brand. At the same time, completely different product lines can still live under separate, independent brands. One brand, one category, many variations.
Example? Beiersdorf makes it personal.
With brands like Nivea and Tesa, Beiersdorf uses family branding to group related products under a shared name — building trust through consistency, while keeping categories distinct.
Advantages
- Full freedom to expand into new product categories
- Tailored messaging for each brand and audience
Disadvantages
- High effort, as each brand must be developed and managed independently
- The company or manufacturer may also need a separate presence for corporate topics
The Brand Extension Strategy
New product, same name.
In a brand extension strategy, a new product isn’t launched with a new brand — it enters the market under an existing, established name. This approach expands the portfolio while leveraging the equity and trust already built. One brand. More reach. Less friction.
Example? Scout24 keeps it in the family.
With products like AutoScout24, ImmoScout24, and Check24, the Scout24 group uses brand extension to grow its reach — new services, same trusted name, instant recognition.
Advantages
- The image of the established brand can positively influence the new product
Disadvantages
- The brand image may become less distinct for the consumer
When do you need a brand strategy?
The answer is simple: always. You don’t wait for a crisis to build a strategy. You build one because a brand without direction is just noise.
A strong brand strategy always starts with insight — into the market, your audience, and your own identity.
It defines what you stand for, what you promise, and how you show up — inside and out. These are the cornerstones of an authentic brand presence. And the foundation for achieving real business goals.
A brand strategy isn’t just critical when launching. It’s a living system. It should evolve — especially when new products or sub-brands enter the picture. Smart brands stay aligned, relevant, and ready to grow.
