Branding and Advertising Case Studies
Companies with independent brands but consolidated advertising include Proctor and Gamble, Johnson and Johnson, and IHG. For each of these companies, I've provided specific examples of how they use consolidated advertising across their subsidiary brands. You'll find a deep dive of my research below.
1. Proctor and Gamble: This is one example of a parent company with consolidated advertising spend on its subsidiary brands, which include Gillette, Old Spice, Olay, Tide, Pampers, and others. Many of these brands are highly valuable and successful by themselves; Gillette has a $20 billion brand valuation, and Gillette, Tide and Ariel are all ranked in the top 500 brands worldwide. In addition, these brands have benefited from consolidated advertising and economies of scale provided by P&G. For example, Gillette is one of P&G's subsidiary brands that has a unique brand but that has greatly benefited from consolidated advertising. When Gillette was purchased by P&G, the parent company was able to replicate Gillette's pre-merger advertising program, but at 30% of the cost due to economies of scale. P&G also transferred its industry-leading joint value creation practices to Gillette. Another example from P&G is Old Spice, a brand which is well-known for its successful marketing strategy, which transformed the brand to appeal to youth.
2. Johnson and Johnson: This is another parent company with many successful and independent subsidiary brands, such as Clean and Clear, Aveeno, Neutrogena, and Brand-Aid. This company has also had success with consolidated marketing. For example, Neosporin and Band-aid, all under Johnson and Johnson's umbrella, helped each other in advertising through a joint advertising campaign. The campaign was designed to encourage consumers to use the two products together, as they are so closely related. In addition, several of Johnson & Johnson's brands participate in a joint marketing campaign, called Healthy Essentials, which gives discounts to customers that buy bundles of different products together.
3. IHG: IHG is an example of a case where the subsidiary brands under a parent company are more well-known than the parent company itself. For example, Holiday Inn is a far more popular brand than IHG. This company has also made extensive use of consolidated advertising. All of IHG's independent brands participate in the company's loyalty rewards program. This successful program has resulted in 30% growth for IHG. In addition, individual brands advertise for other brands under the IHG umbrella. For example, on the Holiday Inn website, other brands such as Intercontinental, Crowne Plaza, and Hotel Indigo are advertised.
To wrap up, Proctor and Gamble, Johnson and Johnson, and IHG are all companies with independent brands but consolidated advertising. This consolidation takes the shape of joint advertising campaigns, collective loyalty rewards programs, and economies of scale.