Strategy of co branding

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Strategy of co branding,
advantages and disadventages

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Strategy of co branding

  1. 1. Extended Core Existing New ProductComplementarity Target Group / Market
  2. 2. 1. Reaching In
  3. 3. 2. Reaching Out
  4. 4. 3. Reaching Up
  5. 5. 4. Reaching Beyond
  6. 6. • Be an advantage for both parties and not use the image of one on order to boost the other one. It should bring an added value for both brands in the consumer view. • - It is necessary that both partners are on the same quality level. If a brand is perceptible with a lesser quality, both brands can be affected by a negative reaction of the consumer. However we must underline that the risk for brands with strong reputation is higher. • - It should be relevant to the consumer view. In another word, it should be innovative and bring an advantage to the end user. For instance: the sports wear of Sergio Tacchini who collaborated with 3M for the production of an athletic suit water resistant and antitask. • - It could be the association of unexpected brands, such as Opel and Durex, in order to differentiate one of the brands or both fom their competitors which is the case for Opel in the cars market.
  7. 7. • Dilution of brand image: Beyond an operation of co-branding, a brand is linked not only with another brand but it also combines with its values and image. The consumer can be flustered by the leading association which introduce different characteristics, and as a result the brand image can be changed and lose its signification. To restrict the image dilution of the brand, it is primordial that the co-branded brands show consistent values. • Cannibalization of brand partners: A co-branding operation can ask the question of the cohesion of a range of products: when the co-branded product is positioned on a market close to co- branded brand products. This co-branded product can create confusion in the consumer mind. • Brand disparition : Sometimes, the Co-branding can consist in programming and orchestrating the disparition of a local renowned brand , to the advantage for another worldwide brand. At first, the worldwide brand can appear in a very discreet way but « petit à petit » it evicts it definitively. In this case, a successful co-branding is the one that does it gently. The objective is to keep the faithful customer.

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