The goal is to market and sell new products or services for both of those companies or brands. You can use similar marketing concepts in your one presentation to the public or you can combine multiple concepts if you prefer. What Are the Pros of Co-Branding?
Companies often allocate a significant portion of their marketing budget to promoting their brands, differentiating their products and increasing market share. A brand may have local significance, such as a well-known restaurant in a city, or it can have an international presence, such as Coca-Cola, Intel, McDonald's and Kraft.
Strategies When promoting a brand, companies sometimes Co branding advantages and disadvantages to follow a multiproduct branding strategy, similar to automakers Ford and Toyota. In this regard, a company's name is an umbrella brand for all its products.
Coca-Cola, Apple and Intel have focused their energies on branding their corporate names and images rather than individual products.
Grocery chains and big-box retailers use private-label branding to attract value-conscious customers. Advantages Companies use branding to differentiate their products based on value, quality and other attributes.
A positive brand image creates a halo effect that affects existing products and makes it easier to introduce new products.
The "Intel Inside" campaign, for example, was designed to brand all Intel microprocessors as high-performance and high-quality products. Apple has followed a somewhat different route because it relies on its corporate name and unique product brands.
A mixed-branding strategy can leverage a company's reputation for innovation to carve out profitable market niches, such as Apple's Mac computers for graphics-intensive operations, while developing entirely new markets, examples of which would be iPods and iPads.
Kraft consumers know they are getting a quality food product, which makes it easier and more cost-effective for Kraft to introduce and gain consumer acceptance for new products. Disadvantages The main disadvantage of branding is the high advertising and related public relations costs.
Establishing a local or international brand requires years of sustained advertising, high levels of quality and exceptional customer service.
A brand image and reputation cannot be established in a few weeks. Companies must continue their promotions even during economic downturns or when sales stagnate, because if they do not, competitors might fill the void and be in a better position when the economy turns around.
These expenditures can reduce margins, especially if sales volumes are being affected by price competition or changing customer preferences. Also, there is the risk that poor customer service by wholesalers or retailers in the distribution channel might reflect poorly on the brand itself.
Manufacturing issues that lead to product recalls, such as Toyota's well-publicised problems with brakes from tocan also affect a brand's image, which usually requires additional expenditures to repair.
Co-Branding Co-branding refers to a joint branding arrangement between multiple companies. Marketing consultant Steve McKee points to grocery store aisles for co-branding examples, from cereals to ice cream.
Small businesses can explore dozens of opportunities in local or regional markets for co-branding opportunities that reduce cost while increasing market penetration.
McKee cautions, however, that co-branding can have a dilutive effect because the credit for a positive experience is spread across at least two brands instead of one, and a negative experience with one brand could harm the partner brands.Despite the increasing applications, the potential disadvantages associated with co-branding strategies are the risks and lack of control in consumers' perception towards 4/4(1).
Co-branding is the practice of two or more companies or brands coming together for a common marketing strategy. The goal is to market and sell new products or services for both of those companies or brands.
First and foremost, although there is no universally accepted definition of co-branding, Leuthesser, Kohli and Suri (, p.
36) have defined co-branding as "the combining and retaining of two or more brands to create a single, unique product or service".
Benefits of Co-Branding: The costs of launching a brand new product are less when you add an existing product or brand to the mix instead of creating an entirely new product. Also, a wider range of consumers can be reached since fans have already been found and made. Co-branding, is a marketing strategy that involves strategic alliance of multiple brand names jointly used on single product or service..
Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy. As described in Co-Branding: The Science of Alliance.
Co-branding is an arrangement that associates a single product or service. Co-branding has various advantages, such as - risk-sharing, generation of royalty income, more sales income, greater customer trust on the product, wide scope due to joint advertising, technological benefits, better product image by association with another renowned brand, and .