11.5.how can companies combine products to create strong co brands or ingredient brands by-vishnupriya aryabhumi

1. Setting
Product
Strategy
How can companies combine
products to create strong co-brands
or ingredient brands?

2. What is Co-Branding??
• Also called as Dual branding/ Brand
bundling

3. Lets look at few examples

4. Advantages of Co-Branding??
• Increased potential for market sales
• Low cost of introduction
• Learn about the approach of other
companies

5. Disadvantages of Co-
Branding??
• Customer expect high quality
• Dissatisfaction will have higher negative
repercussion
• Brand alignment with another brand in
consumer’s mind

6. So when to go for Co-Branding?
When
• Brand equity exists
• The products are Complementary
• Values, capabilities, constraints and goals
of the companies align

7. Price considerations in Co-
Branding
• Sum is less than parts
• Avoid conflicting promotions
• Be wise in offering large rebates on
individual products
• Consider the experience and knowledge of
the customer
Caution: Avoid price war in Single product firm Vs

8. Ingredient branding
• Ingredient branding is a special case of
cobranding
• It creates brand equity for materials,
components or parts that are necessarily
contained within one another

9. Example for ingredient branding
PC manufactures pay significant premium to intel instead of buying an equivalent com

10. Thankyou!
By
Vishnupriya Aryabhumi
IITMadras

11. Credits
Backgroun
d
IDRA; www.preventconnect.org
4 www.brighthub.com
www.quora.com
10 www.intel.in
Based on Chapter 12 of Marketing Management by Kotler Keller Koshy Jha
14th edition
Disclaimer
"Created by Vishnupriya Aryabhumi, IITMadras, during an internship by
Prof. Sameer Mathur, IIMLucknow.
www.IIMInternship.com"