Explain how UMG uses these subsidiaries to maximise the success of artists from different genres

Fascination Records
Island Records

Fascination Records and Island records are both subsidiaries of the conglomerate, Universal Music Group.
There are many advantages of using a smaller label to focus on specific artists, for example as UMG is an extremely large label and owns a variety of different artists, these smaller labels can identify the genres in which these artists come under. By having a label that focuses on a specific genres and specific artists, they can focus on the type of audience they would target. To have different branches reaching out to these genre specified audiences means UMG can still gain a large audience without losing the connection to what certain people like to listen to.
Also, because these labels are so genre focused, it means they can pass on expertise to promote these artists in the best way possible. For example Fascination Records focus primarily on Pop. Artists that are signed to them are those such as Cheryl Cole, The Saturdays, Miley Cyrus and the Jonas Brothers, who all fall into that category. All these artists are mainstream and therefore know what sort of audience would be interested in them. Their expertise has, for instance, got 'Girls Aloud' 20 consecutive Top 10 singles.
Island records focus on a more of a niche audience, but still uses their expertise on their primary genres of reggae, soul and urban. However not only do they own obvious artists such as Bob Marley and Stevie Wonder, they also have artists such as Florence and the Machine and Mumford and Sons. These artists are in their own ways very unique and you could argue are part of the niche target market. Island records have their expertise built up from 1959 originating in Jamaica. For years they understand how to get the most out of their artists as individuals and as a whole.
UMG need this sort of expertise to look after certain artists individually rather than having all these artists in their hands and their hands alone. By having these smaller labels, they can get the best out of specific artists and in the long run gain more profit with more sells.

Another important factor is the geographical distribution of music around the world. As i said previously, Island records was founded in Jamaica, and a majority of its artists are based around the Caribbean islands. This is similar to Fascination as they're main appeal is for British pop music. When thinking about a large conglomerate such as UMG, it makes distribution and exchange to different areas of the world much easier as genres are usually focused around a particular area of the world anyway and therefore smaller labels would gain a local appeal.

Also, by having these smaller labels, artists can maximise the success for themselves by working with other artists. Whether that be by collaboration or by existing artists promoting new artists. For example when Girls aloud from Fascination were on tour, The Saturdays supported them. The institutions know that the audience that came to see Girls aloud would also enjoy the Saturdays as they are of a similar genre. This kind of exposure to artists of the same label increases success for them, and the label itself.