“Sub brandAlthough the purpose of extracting it is based on many reasons, people still wonder.

Agree auto What might be the ‘goals’ of brands creating sub-brands?

Addressing different target groups is at the top of the list.

Every car brand wants to appeal to customer segments with different income levels and lifestyles. The main brand usually appeals to a specific market segment, while sub-brands offer tools for more specific target groups. For example, in order to compete in the luxury segment, Toyota has Lexus Like launching his brand.

Naturally, the main brand also has a certain image and experience. A sub-brandcan be placed in a different position. For example, while the main brand appeals to the middle class, the sub-brand can focus on luxury, sporty, eco-friendly or low-budget segments. This way it achieves a larger market share without damaging the reputation of the main brand.

Diversity in the market is also important.

Through sub-brands, manufacturers have the opportunity to try out innovative technologies or different vehicle designs. These sub-brands allow the parent brand to enter new technologies or markets without taking risks. For example North Staris a sub-brand that positions Volvo in the electric vehicle segment and invests in innovative technologies in this segment.

Also some sub-brandsmay be more effective in certain geographic areas. A parent brand operates globally, while a sub-brand can only position itself in a specific regional market.

Price sensitivity management also plays a role.

of the main brand high quality and if it offers expensive products, sub-brands are used to compete in lower price segments. This makes it possible to appeal to different income groups without being under price pressure.

Well, this of sub-brands Which one do you know?

Volkswagen Group:

Audi PorscheBentley, Bugatti, Lamborghini, Škoda, SEAT, Cupra.

Toyota

LexusDaihatsu, Hino, Gazoo Racing (GR).

BMW Group

Small, Rolls RoyceBMW M, BMW i.

Daimler AG (Mercedes-Benz Group)

Mercedes AMGMercedes Maybach, Smart.

Stellantis (FCA and PSA Group)

jeepRam, Alfa Romeo, Maserati, Dodge, Chrysler, Peugeot, Citroen, DS Automobiles, Opel/Vauxhall.

Hyundai Motor Group

KiaGenesis, Hyundai N.

This sub-brands What else comes to mind? Don’t forget to share in the comments!

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