In our previous blog about What is Brand Architecture & Its Examples, we discussed the types of brand architectures as well as the benefits of having a brand architecture. We’ve recently started a short series for brand architecture blogs so that we can help people understand each type of brand architecture in depth. Thus, let’s jump into the third article of the series and it’s going to be all about endorsed brands. Just so you know what knowledge you can gain from this, we’ll be listing down a few key pros and cons, examples as well as when and how to create endorsed brands.
Definition of Endorsed Brands
Endorsed brands, or endorsed sub-brands, are a branding strategy that allows their sub-brands or products to have their own reputation and brand identity while still being able to leverage off of their parent brand. When a brand uses endorsed brands as their choice of architecture, their subsidiary brands or products maintain an independent identity as well as benefit from the established reputation and credibility gained by their parent brand.
Pros of Endorsed Brands
1. Unique Identity with Endorsement Benefits: Each sub-brand under its endorser will have a unique brand identity with only some resemblance to its parent brand. This means that brand colours can be different but their overall image is slightly similar. While being slightly independent, they still obtain good recognition, reputation or a larger audience depending on whatever reputation the parent brand had built and gained.
2. Larger Scale of Marketing: Since they can leverage off their parent brand’s reputation and recognition, they can also leverage off the marketing efforts and achieve cost efficiencies. It’s like having shared marketing benefits between the parent and the endorsed brand. Whatever the parent markets can help its endorsed brand and vice versa.
3. Reduce Risks: The endorsed brand may also obtain a cushion of safety, so to say, in any case whereby a newly endorsed brand enters the market. Depending on the reputation of the parent brand, it may provide a great market entry. This is because consumers are more likely to trust the endorsed brand since it’s backed by a reliable parent brand.
Cons of Endorsed Brands
1. Limited Independence: Since the endorsed brands are tied to their parent brand and its values or image quite closely, there is limited space to establish distinct individuality.
2. Tied to Parent Brand’s Reputation: Earlier we mentioned how being tied to its parent brand may make a great market entry. However, being tied like this may also have a higher possibility of a chain reaction when the parent brand’s reputation takes a hit. This means that any negative perception or news is likely to affect its endorsed brands as well.
Endorsed Brands Examples
1. Nestle
Nestle’s brand itself is quite strong and all its endorsed brands benefit from that. Consumers recognize that each endorsed brand under Nestle is trustworthy and of great quality. Thus, a positive engagement is guaranteed. Even though each brand offers different products, all the products reflect the parent brand’s values and quality.
2. Kellogg’s
Kellogg’s is one of the most recognized brands of cereals or breakfast foods in the market. That being said, all their endorsed brands of cereals are highly favoured by consumers. They all have their own distinct taste and image while still bearing similarities to their parent brand and each other.
When to Consider Endorsed Brand as a Brand Architecture
The endorsed brands model is usually suitable for businesses that have multiple categories of products or services while having independent brand identities with a connection to their parent brand. A brand should consider this model when:
- They want to maintain brand independence: When a brand wants its endorsed brands to have their own voice and image, but still benefit from the positive perceptions of the parent brand.
- They want their endorsed brands to leverage credibility: When a brand wants to introduce a new product or service to the market and wants to leverage the reputation and trustworthiness of the parent brand to gain a head-start in the competition.
- They want to brand or market cost-effectively: When a brand wants to optimize its marketing efforts by gathering resources and creating synergies between the parent brand and the endorsed brands.
How to Create Endorsed Brands
When you as a brand decide to utilise the endorsed brands model, there’s a certain approach that can help you successfully start:
- Determine & Establish the Endorsed Brand: Choose a brand that aligns well with the parent brand. Endorsed brands should reflect the parent brand’s values, image, and quality, overall complementing the parent brand while having a distinct image so as to not confuse their target market.
- Branding, Marketing & Advertising: A parent brand should invest in all three aspects mentioned in order to prominently highlight the parent brand’s endorsement of the subsidiary brand. When done right, the endorsed brand gains trust and credibility since they are marketed in a way that clearly connects the endorsed brand to its parent brand.
- Ensure Independence: While it’s good to let the endorsed brand leverage from the parent brand’s reputation or image, make sure to let it maintain its own brand identity. You can create a unique brand story and value proposition that sets it apart from the parent brand and competitors.
Conclusion
The endorsed brands model offers a powerful branding strategy and a great head-start with a good reputation while still allowing room for some individuality. It’s especially a great move when the parent brand has a good reputation to start with and credibility through consumers’ trust. By carefully building the relationship between the parent and endorsed brands, companies can unlock the potential of brand endorsement to build the success of new offerings. When executed thoughtfully, endorsed brands can lead to increased brand recognition, consumer trust, and ultimately, business growth. If you’re unsure where to start or how to determine which brand architecture suits your brand, CR8 Consultancy is always here to help so that your brand and its subsidiaries are neatly organized.
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