Every business desires to stand out from the competition. Endorsed branding is an effective way to differentiate your business from the competition and increase your presence in the marketplace. Endorsed branding is when a company or brand is associated with a celebrity, influencer, or expert to lend credibility to the product and increase public awareness. Endorsed branding can help to elevate a product or service by providing a unique experience, increasing sales, and improving customer loyalty. Moreover, brands that have engaged in endorsed branding report higher brand recognition and trust among their target audience. This blog post will explore the ways endorsed branding can help your business stand out from the competition and increase sales. By the end of this post, readers should have a better understanding of why endorsed branding is an effective marketing strategy and how to implement it into their own business.
What Is An Endorsed Brand Strategy? (Pros, Cons & Examples)
What are the benefits of endorsed branding?
Here are some advantages that businesses might experience by implementing a recommended branding strategy:
Leveraged reputation
Some parent brands may have a history of being recognized as industry leaders. They might have a well-known name that has earned the trust of or comfort of customers. Parent companies can quickly increase customer trust in endorsed brands by utilizing this reputation. Customers may be more likely to support any affiliated brands if they support the parent company.
Independent positioning
While endorsed branding can enable a brand to benefit from the name recognition of a parent company, it can also enable it to create a distinctive name, personality, and marketing strategy. For instance, an endorsed brand might be entirely distinct from its parent company, save for a minor distinguishing characteristic. As a result, the brand is free to develop any brand narrative that can advance its business goals, even if that narrative diverges from the parent company’s narrative.
Innovation
A brand may be able to envision and develop fresh, original concepts with the help of endorsed branding. An endorsed brand may have more resources to support the implementation of new concepts because it can be supported by the parent company’s reputation. This may lead to the launch of successful and interesting new products and the expansion of the parent brand’s product line.
Established customer base
Despite the fact that an endorsed brand may offer different goods or services than its parent brand, it may still draw in many of the same clients. This may enable endorsed brands to shift their attention away from customer acquisition, freeing up more funds for development, marketing, and other costs. The customer base of the parent company may increase as an endorsed brand expands and enters new markets, forging a relationship that is mutually beneficial.
Loyalty
Customer or brand loyalty may be difficult to develop for a newer brand, but an endorsed brand can gain from the loyalty of the previous customers of its parent company. Customers may be more likely to support a new product or service associated with a parent company if they have had positive experiences with it. If they enjoy the goods or services of an endorsed brand, their loyalty may grow as a result of their perception that the parent company is providing them with ever-evolving options to suit their needs.
Combined offerings
Endorsed brands may promote or sell products alongside those of the parent companies. For instance, an endorsed brand may sell baking tools for consumers to use with the baking mixes from the parent company. This may give the impression that the brand provides customers with a practical answer to all of their needs.
Lower risk
The backing of a parent brand can reduce the typical risks associated with a new business if an endorsed company plans to launch a novel or novel operation. Having established clientele, pooling resources, and leveraging reputation can help endorsed brands make the best commercial decisions with less anxiety. The parent company can take risks by investing in younger businesses because of its sizable portfolio and low association.
Diverse portfolio
Being connected to numerous endorsed brands of various kinds can assist a parent company in building a diverse portfolio of products. Due to its ability to satisfy a variety of customer needs, it can effectively dominate markets. Additionally, it can strengthen a parent company’s standing as the industry leader.
What is endorsed branding?
Different product or service brands are positioned independently from their parent companies using the branding strategy known as “endorsed branding,” which also maintains an association or endorsement with the parent brand. In this style of branding architecture, a parent company may position various subbrands as distinct or independent but linked by a definite and recognizable association. Visual associations could include endorsed brands using parent brands’ graphics, colors, or logos as a guide. The association may also be mentioned by brands on packaging or marketing collateral.
Subbrands frequently maintain distinctive and individual identities within the market, despite the fact that their association with their parent brand can be obvious to and easily understood by consumers. The company’s family of brands may be large and pertain to various industries because a parent brand may support a variety of endorsed brands. Determining the best way to connect all brands without diluting individual identities may be a part of a company’s endorsed branding strategy.
Endorsed branding vs. subbranding
Here are some differences between endorsed branding and subbranding:
Parent company involvement
Subbranded businesses are extensions of a parent brand, whereas an endorsed brand may receive support from a parent brand to run a separate business. A parent company may employ subbrands to cater to a new customer base or broaden its product line. Subbrands are strategically added to parent companies’ portfolios because parent companies use them in accordance with their desires and goals. A parent brand may choose to include an endorsed brand in its portfolio, but it can also add value by making decisions on its own and succeeding.
Naming
An endorsed brand may have a unique name that doesn’t or only tangentially refers to the parent company. A subbrand may use the name of the parent company in its name. The name of a subbrand may then include more details about the target subgroup. A “junior” version of a parent brand or a “light” version of a beverage product are a couple of examples of this. Even though subbranded companies’ names can change, they frequently bear a stronger resemblance to their parent company than those of an endorsed brand.
Benefit to the parent company
While having a relationship with an endorsed brand can have some advantages for a parent company, a subbrand is more likely to assist its parent company in achieving its objectives. This is so that a subcompany may be established specifically to fulfill a need for the parent company. The success of the parent company is directly correlated with the growth and increase in market share of a subbrand.
Audience reach
By reaching new consumers and markets, an endorsed brand can benefit the parent brand. While a parent brand’s existing customer base can include a variety of customers, a subbrand may be less likely to focus on completely different markets. For instance, a subbrand may target a particular segment of a parent company’s clientele, such as younger clients, but may have a lower likelihood of connecting with clients of unrelated goods or services.
Risk
Even though a parent company might be at risk if an endorsed brand doesn’t perform as well as anticipated, the limited association and various target markets can limit any unfavorable effects. A parent company that has explicitly linked itself to a subbrand that is not as successful as expected may face difficulties. A subbrand can have a greater influence on a parent brand’s success because it is frequently an extension of that brand.
Tips for endorsed branding
Here are five suggestions to help you make the most of endorsed marketing if you’re a business or marketing professional interested in using its principles:
Choose endorsements carefully
A parent company still runs the risk of damaging its reputation in this relationship even though an endorsed branding strategy may limit the association between a parent and endorsed brand. Consider each prospective endorsed company carefully, taking into account its growth potential, current offerings, and long-term objectives to ensure a mutually beneficial experience. These metrics can assist you in determining which businesses will help a parent company succeed.
Creating profiles for ideal brands or making a list of potential benefits you’d like to get from each endorsement relationship may also be helpful. By doing this, you can assess potential endorsement companies according to how closely they adhere to your values. A brand may be a good fit for a parent company’s portfolio if you think it will succeed and it meets your requirements.
Prioritize innovation
Considering a brand’s capacity to develop innovative and interesting goods or services may be helpful when deciding which brands to endorse. You may be able to associate with innovative, risk-taking businesses through endorsed branding without taking on as much risk. Endorsing innovative brands has the potential to be profitable because consumers who enjoy trying out novel goods or services might form favorable associations with companies that support this innovation.
Target new markets
With the help of endorsed branding, it may be possible to diversify into new markets without investing the necessary resources in doing so. A parent company can broaden its reach and gain insightful knowledge about the clients and procedures in those markets by developing relationships with brands in various industries. Businesses can use this information to develop future joint ventures or to enhance current practices.
Create compelling associations
Although an endorsed brand’s identity may be largely distinct from that of the parent company, it can be important to create an obvious link between the two. This can allow all parties to benefit from the relationship. When forming associations, it might be crucial to develop a unified approach to bringing the parent company’s offerings together while preserving individuality. Using the parent company’s name on packaging, visual branding with similar color schemes, and marketing promotions are a few examples of how to accomplish this.
Link goals
When starting an endorsement-based relationship, it can be crucial to choose brands that offer opportunities to pursue related goals or share goals with the parent company. For instance, a parent company looking to enter a new market in the future might look to endorse a company that brings innovation to that industry. By doing this, you can establish a partnership that benefits both the parent brand and the endorsed brand and aids them in achieving their objectives.
FAQ
What is endorsed branding?
Different product or service brands are positioned independently from their parent companies using the branding strategy known as “endorsed branding,” which also maintains an association or endorsement with the parent brand.
What is an endorser logo?
Red Hat lends its reputation and credibility to a cause or another company by using an endorsement logo. Through endorsements, we can participate in narratives and messaging that depart from our core brand, strategically market to new audiences, and establish a connection between initiatives and Red Hat.
Why are sub branding and endorsed branding useful?
A product endorsement is a public declaration from a person or organization in support of a product’s features, quality, benefits, and/or brand, and is frequently the focal point of an advertisement or marketing campaign. An endorsement can be either paid or unpaid.
