What\u2019s common between Maggi, Nexa, Cornflakes, or even Ponds and Surf Excel? They\u2019re all endorsed brands. Nestle, Unilever, Pepsico, Maruti and Kellog\u2019s have been doing endorsed branding for ages. But first things first, what\u2019s endorsed branding? <\/p>\n\n\n\n
It\u2019s a brand architecture strategy, where distinctly different products or service brands are positioned individually from the parent brand. Though the endorsed brands distinctly differ for the parent brand, they each retain an association with the endorser through visual reference or carry the parent brand mark. <\/p>\n\n\n\n
Endorsed branding comes with a set of benefits and cons. Read on to know more about the pros and cons of endorsed brands.<\/p>\n\n\n\n
The Pros of Endorsed Brands<\/strong><\/p>\n\n\n\n Leverage reputation of the parent brand for endorsement benefits<\/strong><\/p>\n\n\n\n Every sub-brand under the endorser gets a unique brand identity with just little resemblance to its parent brand. Although brand colours differ from the parent brand, they maintain an overall image which is slightly similar. This means they still obtain recognition and reputation based on the market reputation the parent brand had built and gained.<\/p>\n\n\n\n Amplified<\/strong> Larger Scale of Marketing<\/strong><\/p>\n\n\n\n Endorsed brands don\u2019t need to establish brand awareness from ground zero. They can leverage off their parent brand\u2019s reputation and recognition, as well as its marketing efforts to achieve cost efficiencies. Think of this like shared marketing benefits, whatever the parent markets, it will help the endorsed brand and vice versa.<\/p>\n\n\n\n Reduced Risks<\/strong><\/p>\n\n\n\n Endorsed brands have the added advantage of safety and security from the established parent brand. This cushion of safety is important especially when a newly endorsed brand enters the market. Consumers are more likely to trust the endorsed brand since it\u2019s backed by a reliable parent brand, and may result in a great market entry.<\/p>\n\n\n\n The Cons of Endorsed Brands<\/strong><\/p>\n\n\n\n Limited Independence:<\/strong> <\/p>\n\n\n\n The biggest drawback of having an endorsed brand is that it\u2019s tied to the parent brand. Its values, image and reputation quite closely impact the endorsed brand. But while there might be limited space to establish a distinct individuality at the start, endorsed brands can build on this to become a niche brand with a range of offerings of its own. Just like Maggi and its range of noodles, spices or ready-to-eat food items.<\/p>\n\n\n\n Dependency on Parent Brand\u2019s Reputation<\/strong><\/p>\n\n\n\n Earlier we mentioned how being tied to its parent brand may help endorsed brands make a great market entry. However, being closely tied like this may also have a higher possibility of a chain reaction. If the parent brand\u2019s reputation takes a hit, it will impact the endorsed brands. It\u2019s important that endorsed brands make a position that sets them apart from the parent brand and competitors.<\/p>\n\n\n\n Conclusion<\/p>\n\n\n\n When executed right, endorsed brands will lead to increased brand recognition, consumer trust and business growth. It\u2019s a powerful strategy for brands to get a head-start with a good reputation, while giving the space to grow with some individuality. By carefully building a relationship between the parent and endorsed brands, companies can unlock the potential of brand endorsement to build the success of new offerings.<\/p>\n\n\n\n