Co-branding involves two or more companies forming an alliance to work together and create marketing synergy. There are two main types of co-branding: ingredient co-branding where one brand is well-known and the other seeks renown, and composite co-branding where both brands are renowned and combining them provides better results than individual branding. Co-branding strategies include market penetration to preserve existing market share, a global brand strategy using a single co-brand worldwide, brand reinforcement with a new co-brand name, and brand extension creating a new co-brand name for a new market. The advantages of co-branding are shared resources, reduced costs and higher margins, branding boost if

1. UNIT-5
S.

2. CO-BRANDING
Co-branding, also called brand partnership, is when two or more companies form an
alliance to work together, creating marketing synergy.
• Ingredient Co-branding
When one brand is renowned but the other is not, yet they enter Co-branding. The
objective of such a Co-branding exercise is to get the latter brand renowned.
• Composite Co-branding
Composite co-branding is what we observed in case of Dell and Intel – where both the
brands are renowned and the composite result of combining the branding exercise is better
than advertising the brand on its own.

3. COBRANDING STRATEGIES OR METHODS
• Market penetration strategy: A conservative strategy that seeks to preserve the
existing market share and brand names of two partnered or merged firms.
• Global brand strategy: Seeks to serve all customers with a single, existing global co-
brand.
• Brand reinforcement strategy: Exemplified by the use of a new brand name.
• Brand extension strategy: The creation of a new co-brand name to be used only in a
new market.

4. ADVANTAGES AND DISADVANTAGES
Advantages
• Shared resources
• Reduced costs and hence higher margins
• Branding boost especially if both the brands are
renowned
• Shared risk – All the risk is not bourne by one
brand
• Better sales and better customer relations
• Financing becomes easier as two brands are
intertwined.
Disadvantages
• If anything goes wrong, both the brands are
affected
• Brand alliance might be positive or negative in
consumers mind and might not achieve the
desired effect.
• If 1 brand enters too many co brand exercises, it
dilutes itself, and hence the other brands it has
associated itself with.
• Consumers may prefer the bundling above the
individual offering, thereby dropping the value
when the co-branding exercise ends.
• Consumers may not focus on the individual
brand altogether, thereby causing the co-
branding exercise to fail.

5. BRAND PACKAGING ANA LABELING
• “Packaging is the general group of activities in designing or the containers or wrappers for the
products”.
• Product Protection
• Product Identification
• Product Convenience
• Product Promotion
• Labeling means putting identification marks on the package. Label consists of verbal information
that accompanies the product
• Brand Labels
• Grade Labels
• Descriptive Labels
• Informative Labels.

6. THANK YOU ALL FOR YOUR PATIENCE
S. Thowseaf