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How can companies combine products to create strong co-brands or ingredient brands?

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Sameer Mathur
Sameer Mathur

This presentation is created as a part of a Marketing internship and is based on Chapter 11- 'Setting Product Strategy" from Kotler book of Marketing Management.

Marketing
1 of 11
Co-Branding And Ingredient Branding
CO-BRANDING Two or more well-known brands are combined into a joint product or marketed together in the same fashion. Also known as ‘Dual Branding’ or ‘Brand Bundling.’
COMPANY CO-BRANDING Gillette India promotes its Gillette Mach 3 Turbo shaving system and Gillette Shaving Gel together.
JOINT-VENTURE CO-BRANDING The Nike + IPod Sport kit turned out to be a huge hit, when famous brands Apple and Nike decided to collaborate.
RETAIL CO-BRANDING ‘Coke Studio’ is a great example, produced by the Coca-Cola Company along with Viacom India, which has been popular throughout the country, receiving critical acclaim .
Characteristics of Co-Branding 1. Generate greater sales from existing market. 2.Open opportunities for new consumers and channels. 3. Reduce the cost of product introduction. 4. Loss of control 5. Risk of Brand Equity Dilution 6. Higher expectations may result in unsatisfactory performance that could have negative impact on both brands.
INGREDIENT BRANDING A special case of co- branding, where a company creates brand equity for components that are contained within the other branded products.
‘Intel inside’ forced the major PC manufactures like IBM, Dell etc. to purchase their chips from Intel at a premium price.
It must have a distinctive logo which must signal that the host product contains the ingredient.
It should make the customers believe that ingredient matters to the performance and success of the end product.
Created by Niharika Gujela, Delhi Technological University, during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com

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How can companies combine products to create strong co-brands or ingredient brands?

  • 2. CO-BRANDING Two or more well-known brands are combined into a joint product or marketed together in the same fashion. Also known as ‘Dual Branding’ or ‘Brand Bundling.’
  • 3. COMPANY CO-BRANDING Gillette India promotes its Gillette Mach 3 Turbo shaving system and Gillette Shaving Gel together.
  • 4. JOINT-VENTURE CO-BRANDING The Nike + IPod Sport kit turned out to be a huge hit, when famous brands Apple and Nike decided to collaborate.
  • 5. RETAIL CO-BRANDING ‘Coke Studio’ is a great example, produced by the Coca-Cola Company along with Viacom India, which has been popular throughout the country, receiving critical acclaim .
  • 6. Characteristics of Co-Branding 1. Generate greater sales from existing market. 2.Open opportunities for new consumers and channels. 3. Reduce the cost of product introduction. 4. Loss of control 5. Risk of Brand Equity Dilution 6. Higher expectations may result in unsatisfactory performance that could have negative impact on both brands.
  • 7. INGREDIENT BRANDING A special case of co- branding, where a company creates brand equity for components that are contained within the other branded products.
  • 8. ‘Intel inside’ forced the major PC manufactures like IBM, Dell etc. to purchase their chips from Intel at a premium price.
  • 9. It must have a distinctive logo which must signal that the host product contains the ingredient.
  • 10. It should make the customers believe that ingredient matters to the performance and success of the end product.
  • 11. Created by Niharika Gujela, Delhi Technological University, during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com