Is it a good idea for a brand to borrow equity in their name, such as by using an endorser brand (Courtyard by Marriott) or an ingredient brand (Intel Inside)?
Something Borrowed
Everything depends, but this is often a very, very good idea! Check out this tellthetruths video to learn more about this issue.
This video originally appeared in LinkedIn
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TRANSCRIPT:
Hey, everyone, it’s Rebeca Arbona with BrandTrue, and this video is called “Something Borrowed,” because it’s all about when names are borrowing equity, when brands are borrowing equity from other brand names. And it’s actually a great idea if there’s something that needs to be overcome, like if a brand is new in some way or there’s some kind of issue with credibility to borrow some equity from somewhere else can be a very strong strategy.
So we see this a lot with the parent company in food companies, for example, Nestlé and General Mills and Kellogg, they have borrowed equity from the parent name, but sometimes you see it in something like ingredient branding, like Intel Inside is an ingredient that’s branded, that lends credibility to the technology that’s using them. And we see it… all kinds of things, Courtyard by Marriott, Disney Presents, but I’ve been thinking about this a lot lately in terms of B Corps. A friend of mine who has a restaurant chain here in Cincinnati called The Sleepy Bee. They worked very hard for many years to attain their B Corp status and it’s a really big deal, and I’ve been thinking about how much effort brands in all kinds of industries go through to attain that. And it’s just such a wonderful… like a name, it’s a wonderful, concentrated bit of meaning.
If you know they’re a B Corp, you know a lot of things about them and their values and it just, it tells you a lot in one quick second, which is what a great name does, too. So anyway, I’m thinking about that, borrowed equity. It can be wonderful. Let me know what you think. Thanks! Bye.
