Risk-SharingGreater customer trust on the productWide scope due to joint advertisingTechnological benefitsBetter product image by association with another renowned brandGreater access to new sources of finance
Co-brandingis an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer.
Evolution 1 +1 = 3 Halo effect Strategic questions to be dealt with.
1. Risk-Sharing2. Greater customer trust on the product3. Wide scope due to joint advertising4. Technological benefits5. Better product image by association with another renowned brand6. Greater access to new sources of finance
1. Co-branding may fail when the two products have different market and are entirely different.2. If there is difference in visions and missions of the two companies, then also co-branding may fail.3. Co-branding may affect partner brands in adverse manner.
1. Composite Co-brandingIt refers to use of two renowned brand names in a way that they can collectively offer a distinct product/ service.
2. Ingredient Co-branding Implies using a renowned brand as an element in the production of another renowned brand or a product. &
Set the standards for personal computing and focused on improving products. Decided to become distinctive. Chose to market the product as „BrandedComponent‟ High perceived value.
The Logo 1st trademark in electrical component industry. Taking away the mystery 10 years hence, “Why don‟t they use Intel chips? Are they using anything cheaper, or not as good??
Negotiated volume discounts with publishers and producers. Reduced its own advertising. Taught the customers to “Look for the Intel Inside logo” Sales rose by: 1992 : 63% 1995: 95% 1998: Intel controlled 90% of worlds share of PC microprocessors
Today, the Intel Inside® Program is one of the worlds largest co-operative marketing programs, supported by some 1,000 PC makers who are licensed to use the Intel Inside® logos.