Lance & Lehman: Building brand power through endorsements

October 1st, 2008 at 11:04am Kylie Crull

A celebrity spokesperson or endorsement can take your product and company to new heights or disastrous lows.

Lance Armstrong’s return to professional cycling could help the Lehman Brothers in their financial collapse. While Lance is not endorsing or working for Lehman, a co-investment has created a connection between the two. Lehman recently made a large investment in SRAM Corp., a high-end bicycle-components maker, an organization where Lance has also invested millions and will serve as a technical advisor. He will also be using SRAM components with the racing team he plans to join. This investment wasn’t a coincidence; it was a strategically planned sales process in which Lehman introduced Lance to SRAM’s co-founder and Chief Executive and offered him an opportunity to co-invest and expand his role within the company. Lehman’s strategic plan here demonstrates how there are alternative ways besides paid endorsements to connect your business to a popular figure.

Sometimes celebrity endorsement is unplanned and unwelcomed if it conflicts with the product and company’s message. Olive Garden’s rogue ambassador, adult-star Kendra Wilkinson, raves about her love of the restaurant but doesn’t embody the message that the business is a family-friendly eatery. We also see rogue ambassadors quite often during campaign season, when celebrities or other public figures endorse a candidate without representing the politician’s messaging. It didn’t go unnoticed by the McCain campaign that Obama had a group of outspoken Hollywood starlets.

Though your marketing budget may not allow you to have Lance Armstrong’s endorsement, when you are looking to hire someone to speak at an event or promote your organization, do your research on the potential endorser so you can consider and be prepared for any red flags.

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