Co-Branding Strategies - Brand Strategy Course material for BBA/MBA. Your comments are welcome to improve this course. Dr. Francois Gaucher, Aperto Libro Academy

1. 1
Brand Associations
BRAND
MANAGEMENT
CHAPTER 6 : BRAND MANAGEMENT
BRAND Associations
F.GAUCHER - Brand Management - Leveraging Secondary Brand Associations to Build Brand Equity

2. Learning Objectives
Objectives
 Explain the process by which a brand can leverage
secondary associations
2

3. Introduction
 Definition of Secondary Brand Associations:
 Brands may be linked to other entities that have their own
knowledge structures in the minds of the consumers
 Because of these linkages consumers may assume that
some of the associations that characterize the other entities
may also be true for the brand. This linkage is called a
transfer.
3
Brand knowledge refers to all of the thoughts, feelings,
images, experiences, and beliefs that become associated
with a businesses brand.

4. Introduction
 What is Secondary
Brand Associations?
 In other words…The brand
borrows some brand equity
from other entities.
 It is an indirect approach of
building brand equity
4

5. Introduction
 Brand leveraging may be important if…
 If the existing brand associations are deficient in any
way
 Brand leveraging helps create strong, favorable and unique
associations and positive responses that are not present.
 Brand leveraging may help new brands to grow under the
umbrella of other most renowned brands.
 To reinforce existing associations in a fresh and
unique way
5

6. Understanding Transfer of Brand Knowledge
6

7. Introduction
 Brand Leveraging operates by linking the brand to…
① Companies
② Countries or geographic areas
③ Channels of distribution
④ Other brands – Co-branding
⑤ Licensing
⑥ Spokespersons
⑦ Events
⑧ Other third party sources
7

8. 1. Company
 Existing brands can be related to a corporate or family
brand
 A corporate or family brand can be a source of brand
equity
8

9. 2. Country of Origin or Geographic
Location
 A place of origin can be linked to the brand to generate
secondary associations
 Consumers choose brands originating in different
countries based on:
 Their beliefs about the quality of brands or products from these
countries
 The image that these brands or products communicate
9

10. 2. Country of Origin or Geographic
Location
 A place of origin can create strong points-of-difference
(POD)
 Geographic associations are possible at a state, regional
or city level as well
10

11. 2. Country of Origin or Geographic
Location
11

12. 3. Channels of Distribution
 Retail stores can indirectly affect brand equity
through an “image transfer” process
 Retailers have their own brand images in consumers’
minds due to the following associations
 Product assortment or category
 Pricing
 Quality of service
 Credit policy
 Location & store layout
 etc.
12

13. 3. Channels of Distribution
13

14. 4. Co-branding
Co-Branding
When two or more existing brands are combined into a joint
product or are marketed together in some fashion
14

15. 4. Co-branding
15

16. 4. Co-branding
 New fashion brand strategy: co- branding with other well-
known brand or collaborating with famous designers or
designer brand
16
Chinese fashion designer
Alexander Wang has been
recently worked with H&M
which increases his brand
awareness and at same time
this collaboration has made
H&M more culture diversity in
the mass fashion market and
gained more fans in China.

17. 4. Co-branding
 Co-branding between carmakers and watchmakers
 Aston martin and Jaeger-Lecoultre
17

18. 4. Co-branding
 Fast fashion brand H&M and Karl-Lager Feld
 This strategy blurred boundary between high–ends, luxury and mass
market product. And at the same time, it increases the market share
for both brands.
18

19. 4. Co-branding
 Increase brand uniqueness
 The uniqueness of collaborative products between the mass market
brand and designer brand.
19

20. 4. Co-branding
 Increase brand uniqueness
 The uniqueness of collaborative products between the mass market
brand and designer brand.
20

21. 5. Licensing
 Contractual arrangements whereby firms can use:
 Names, logos, and characters of other brands to market
their own brands for some fixed fees (Royalties)
21

22. 5. Licensing
 Examples:
 Entertainment (Star Wars, Jurassic Park, etc.)
 Television and cartoon characters (Walt Disney, The Simpsons)
 Designers apparel and accessories (Calvin Klein, Pierre Cardin,
etc.)
22

23. 5. Licensing
23

24. 6. Celebrity Endorsement
24

25. 6. Celebrity Endorsement
 Draws attention to the brand
 Shapes the perceptions of the brand
 Celebrity should have a high level of visibility and a rich set
of useful associations, judgments, and feelings
 Q-Score (Quotient-Score) to evaluate celebrities
 Revert to document provided during class
25

26. 6. Celebrity Endorsement
 Potential Problems
 Celebrity endorsers can be overused by endorsing many
products that are too varied.
 There must be a reasonable match between the celebrity and
the product.
 Celebrity endorsers can get in trouble or lose popularity.
 Many consumers feel that celebrities are doing the endorsement
for money and do not necessarily believe in the endorsed brand.
 Celebrities may distract attention from the brand.
26

27. 6. Celebrity Endorsement
Nivea has dropped Rihanna as
a spokesperson due to her
"party girl" personality.
27

28. 7. Sponsoring
 Sponsored events can contribute to brand equity by
becoming associated to the brand
 Sponsored events may improve
 brand awareness,
 adding new associations,
 the strength, favorability, and uniqueness of existing
associations.
 The main means by which an event can transfer
associations is credibility.
28

29. 7. Sponsoring
29

30. 7. Sponsoring
30

31. 8. Third Party Endorsements
 Involves linking the brand to
various third party sources (e.g.
Rewards, Reviews, Studies, etc.)
 Example - Grey Goose's eventual
success was a taste-test result from
the Beverage Testing Institute that
ranked Grey Goose as the number-
one imported vodka
31

32. 8. Third Party Endorsements
 Marketers can create secondary associations in a number
of different ways by linking the brand to various third-party
sources.
 Third-party sources can be especially credible sources.
 Marketers often feature them in advertising campaigns
and selling efforts.
 Example: J.D. Power and Associates’ well-publicized Customer
Satisfaction Index
32

33. To Sum Up...
 The extent to which an entity can be leveraged as a source
of equity depends on:
 Consumer knowledge of the entity
 How easily the appropriate associations or responses to the entity
transfer to the brand
33

34. Case: EVA Air & Sanrio34

35. EVA Air & Sanrio
A successful example of long term brands collaboration
between the Taiwanese airline company EVA Air and Sanrio,
the official home of Hello Kitty.
35

36. EVA Air & Sanrio
 In 2005, Sanrio approached EVA to sell Hello Kitty-
branded products inflight.
 Chairman Chang, the visionary leader of EVA, had a bigger
idea.
 Make Hello Kitty part of the flight experience
 create an immersive Hello Kitty travel experience.
 After only six months of collaboration between the two
companies, EVA Air launched its first generation of the
Hello Kitty Jets in October 2005.
36

37. EVA Air & Sanrio
 How did these two companies successfully work
together?
 The process of co-branding is not always an easy one and EVA and
Sanrio overcame numerous challenges. The successful partnership
moved forward due to strong leadership and shared values.
 Chairman Chang reviewed every detail and surprised Sanrio by
investing significant resources into the co-branding program.
 Both companies emphasize customer service, quality products and
excellent customer experiences.
 Both companies had different customer bases and working
together meant sharing their customers with each other.
37

38. EVA Air & Sanrio
 Successful results
 This concept appeals to a wide range of travelers as
some passengers book flights to collect the service
items (pillow cases, utensils, headrest covers and more).
 Besides the colorful décor and theme, every passenger
receives warm, friendly service and comfortable aircraft.
 Passenger bookings on the Hello Kitty Jets are
approximately 3 percent higher than their regular
aircraft
 Inflight duty-free sales of exclusive Hello Kitty and
Sanrio items has climbed to $3 million a year.
38

39. EVA Air & Hello Kitty
 Here are some tips for executives considering
such strategies:
 Think big: Hello Kitty Jets are much more than co-
branding.
 Select the right partner with shared values and goals.
 Do everything possible to meet and exceed customer
expectations.
39

40. EVA Air & Sanrio
40
Fun-filled Immersive Experience

41. EVA Air & Sanrio
41
Fun-filled Immersive Experience

42. EVA Air & Sanrio
42
Immersive Experience
Fun-filled Immersive Experience

43. EVA Air & Sanrio
43
Immersive Experience
Fun-filled Immersive Experience

44. EVA Air & Sanrio
44
Fun-filled Immersive Experience

45. EVA Air & Sanrio
45
Fun-filled Immersive Experience

46. EVA Air & Sanrio
46
Fun-filled Immersive Experience