Opinion: Subbrands Are A Marketing Failure

Tim Healey
by Tim Healey

Automakers seem to love the idea of subbrands.

The most recent one to make this sort of shift -- Land Rover.

What I can't figure out is: Why?


Put aside, for a second, that Land Rover is retiring, at least for now, a recognizable brand name that presumably has a lot of brand equity. The larger question is -- do consumers even care?

I would wager that they don't -- and that they don't even know.

Here's an example. I was at a recent event where I ran into my local Stellantis PR rep and I cracked a joke about using a "Jeep Wagoneer" for a task. I was politely reminded that there shouldn't be "Jeep" in front of "Wagoneer."

But the thing is, we still call it a Jeep Wagoneer, in part because we're sort of on a case-by-case basis when it comes to indulging weird naming patterns at an OEM's request, and in part because of search optimization.

And it's not just us -- neither Cars.com nor AutoTrader, the two biggest consumer sites, have Wagoneer listed as a brand. Both list Wagoneer as a model under Jeep as a make.

It's a bit like that line from Mean Girls: "Stop Trying to Make Fetch Happen." Stop trying to make subbrands happen.

I haven't tried this experiment yet, but I bet if I talk to friends and say I am driving a Wagoneer without specifying it's a Jeep, at least some folks wouldn't know what it is, or that it's made by Stellantis and sold right next to Jeeps at the dealer.

Similarly, people will know that a Defender is a Land Rover, but if I say "It's a 110, made by Defender" I am gonna get some weird looks.

Heck, Land Rover was already confusing with the "Land Rover Range Rover" nomenclature.

It's one thing to build out a full-on luxury brand the way Toyota did with Lexus. That works, because there's a distinction in styling and the dealerships are separate. But a subbrand just ends up confusing consumers (and sometimes, us) and doesn't really move the needle. It's anecdotal, I know, but I don't hear people talking about the Wagoneer as if it's separate from Jeep. Unless, of course, they work for Stellantis.

The only time subbrands seem to work is with performance vehicles. BMW M, Mercedes-Benz AMG, and Ford's Shelby Mustangs. It seems to work in those cases because cars slapped with those labels are built on cars that aren't part of the subbrand -- M3 on the 3-Series, and so on -- and because most have a history. Then again, the relatively recent use of N for Hyundai works -- again, because N or N-Line models are based on mainstream vehicles, as opposed to the company trying to make an individual model into a subbrand, as Jeep and Land Rover are doing.

I could be wrong. I am no highly-paid marketing consultant. But for now, it sure seems like the subbrand experiment is too confusing to work.

[Image: Land Rover (or is it Defender?)]

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Tim Healey
Tim Healey

Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.

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  • Tonycd Tonycd on May 03, 2023

    Sub-brands don't have value, except when they do. About 25 years ago, Honda saw some market research that their Legend and Integra sub-brands were more recognized by consumers than the Acura name was. Perversely, instead of playing to their strengths, misguided Acura executives responded with an attempt to ram the parent brand down consumers' throats, abolishing the popular sub-brands and naming every model "Acura" followed by meaningless alphabet-soup gibberish.


    Predictably, the result was a sales carnage that took years to recover from. In some ways, they arguably never recovered. They've never regained the lost share at the sedan high-end abandoned by the Legend, and they ultimately gave up. And the Integra name retained so much more luster than its alphabet-soup replacements, Acura has just brought it back.

  • Marky S. Marky S. on Sep 19, 2023

    How about what Hyundai did? For model year 2017, Hyundai took the name of their top-line sedan and coupe - "Genesis" - and turned it into a brand on its own. As we can see , in North America, this has worked very well for for them. Chrysler did the same thing with their Imperial luxury cars, and created a top-line brand with that name in 1955. This worked well for them until 1975, when they needed to economize their offerings.

  • Bd2 Lexus is just a higher trim package Toyota. ^^
  • Tassos ONLY consider CIvics or Corollas, in their segment. NO DAMNED Hyundais, Kias, Nissans or esp Mitsus. Not even a Pretend-BMW Mazda. They may look cute but they SUCK.I always recommend Corollas to friends of mine who are not auto enthusiasts, even tho I never owed one, and owned a Civic Hatch 5 speed 1992 for 25 years. MANY follow my advice and are VERY happy. ALmost all are women.friends who believe they are auto enthusiasts would not listen to me anyway, and would never buy a Toyota. They are damned fools, on both counts.
  • Tassos since Oct 2016 I drive a 2007 E320 Bluetec and since April 2017 also a 2008 E320 Bluetec.Now I am in my summer palace deep in the Eurozone until end October and drive the 2008.Changing the considerable oils (10 quarts synthetic) twice cost me 80 and 70 euros. Same changes in the US on the 2007 cost me $219 at the dealers and $120 at Firestone.Changing the air filter cost 30 Euros, with labor, and there are two such filters (engine and cabin), and changing the fuel filter only 50 euros, while in the US they asked for... $400. You can safely bet I declined and told them what to do with their gold-plated filter. And when I changed it in Europe, I looked at the old one and it was clean as a whistle.A set of Continentals tires, installed etc, 300 EurosI can't remember anything else for the 2008. For the 2007, a brand new set of manual rec'd tires at Discount Tire with free rotations for life used up the $500 allowance the dealer gave me when I bought it (tires only had 5000 miles left on them then)So, as you can see, I spent less than even if I owned a Lexus instead, and probably less than all these poor devils here that brag about their alleged low cost Datsun-Mitsus and Hyundai-Kias.And that's THETRUTHABOUTCARS. My Cars,
  • NJRide These are the Q1 Luxury division salesAudi 44,226Acura 30,373BMW 84,475Genesis 14,777Mercedes 66,000Lexus 78,471Infiniti 13,904Volvo 30,000*Tesla (maybe not luxury but relevant): 125,000?Lincoln 24,894Cadillac 35,451So Cadillac is now stuck as a second-tier player with names like Volvo. Even German 3rd wheel Audi is outselling them. Where to gain sales?Surprisingly a decline of Tesla could boost Cadillac EVs. Tesla sort of is now in the old Buick-Mercury upper middle of the market. If lets say the market stays the same, but another 15-20% leave Tesla I could see some going for a Caddy EV or hybrid, but is the division ready to meet them?In terms of the mainstream luxury brands, Lexus is probably a better benchmark than BMW. Lexus is basically doing a modern interpretation of what Cadillac/upscale Olds/Buick used to completely dominate. But Lexus' only downfall is the lack of emotion, something Cadillac at least used to be good at. The Escalade still has far more styling and brand ID than most of Lexus. So match Lexus' quality but out-do them on comfort and styling. Yes a lot of Lexus buyers may be Toyota or import loyal but there are a lot who are former GM buyers who would "come home" for a better product.In fact, that by and large is the Big 3's problem. In the 80s and 90s they would try to win back "import intenders" and this at least slowed the market share erosion. I feel like around 2000 they gave this up and resorted to a ton of gimmicks before the bankruptcies. So they have dropped from 66% to 37% of the market in a quarter century. Sure they have scaled down their presence and for the last 14 years preserved profit. But in the largest, most prosperous market in the world they are not leading. I mean who would think the Koreans could take almost 10% of the market? But they did because they built and structured products people wanted. (I also think the excess reliance on overseas assembly by the Big 3 hurts them vs more import brands building in US). But the domestics should really be at 60% of their home market and the fact that they are not speaks volumes. Cadillac should not be losing 2-1 to Lexus and BMW.
  • Tassos Not my favorite Eldorados. Too much cowbell (fins), the gauges look poor for such an expensive car, the interior has too many shiny bits but does not scream "flagship luxury", and the white on red leather or whatever is rather loud for this car, while it might work in a Corvette. But do not despair, a couple more years and the exterior designs (at least) will sober up, the cowbells will be more discreet and the long, low and wide 60s designs are not far away. If only the interiors would be fit for the price point, and especially a few acres of real wood that also looked real.
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