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?)]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

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.

More by Tim Healey

Comments
Join the conversation
2 of 45 comments
  • 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.

  • 3-On-The-Tree 2007 Toyota Sienna bedsides new plugs, flat tire on I-10 in van Horn Tx on the way to Fort Huachuca.2021 Tundra Crewmax no issues2021 Rav 4 no issues2010 Corolla I put in a alternator in Mar1985 Toyota Land Cruiser FJ60 280,000mi I put in a new radiator back in 08 before I deployed, did a valve job, new fuel and oil pump. Leaky rear main seal, transmission, transfer case. Rebuild carb twice, had a recall on the gas tank surprisingly in 2010 at 25 years later.2014 Ford F159 Ecoboost 3.5L by 80,000mi went through both turbos, driver side leaking, passenger side completely replaced. Rear min seal leak once at 50,000 second at 80,000. And last was a timing chain cover leak.2009 C6 Corvette LS3 Base, I put in a new radiator in 2021.
  • ChristianWimmer 2018 Mercedes A250 AMG Line (W177) - no issues or unscheduled dealer visits. Regular maintenance at the dealer once a year costs between 400,- Euros (standard service) to 1200,- Euros (major service, new spark plugs, brake pads + TÜV). Had one recall where they had to fix an A/C hose which might become loose. Great car and fun to drive and very economical but also fast. Recently gave it an “Italian tune up” on the Autobahn.
  • 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,
Next