Co branding

A presentation on Co-Branding.

1. Amity Business School
Co-Branding
Presented By:
Tannu Shree – C 61

2. Amity Business School
Definition
“Two or more well-known brands are combined in an offer”
and each brand’s sponsor expects that the other brand name
will strengthen the brand preference or purchase intention and
hopes to reach a new audience.
- Philip Kotler
2

3. Amity Business School
Intent
•There are three levels of co-branding: market share, brand
extension, and global branding.
•Level 1 includes joining with another company to penetrate
the market
•Level 2 is working to extend the brand based on the
company's current market share
•Level 3 tries to achieve a global strategy by combining the
two brands
•Wei-Lun Chang, “Roadmap of Co-branding Positions and Strategies,”
Journal of American Academy of Business ,Vol. 15, September, pp. 77-84, 2009.
3

4. Amity Business School
Pros And Cons of Co-Branding
4

5. Amity Business School
Pros Of Co-Branding
5

6. Amity Business School
Cons Of Co-Branding
6

7. Amity Business School
The pros and cons of co-branding show that there is a potential benefit in
introducing new products to an established marketplace, but only when a clear
message has been offered. If both companies can offer a concise message to
both targeted audiences, then it can be one very successful marketing
campaign.
7

8. Amity Business School
Types of Co-Branding
8

9. Amity Business School
9

10. Amity Business School
Ingredient Co Branding
•One or more of the brands provides a distinctive ingredient or
component to the primary or carrier brand. In this case, the
ingredient brand is subordinate to the carrier brand.
Examples
•Gateway Computer with Intel chips (ingredient brand)
• Active Perlite ( for deo) with Garnier Men.
•In all cases the ingredient brand’s identity structure is
subordinate to the carrier brand in the
co-branded identity structure.
10

11. Amity Business School
Promotional Co Branding
•Co-branding began with endorsements.
•This approach can be a good beginning point for
organizations; the relationship is simple, but it can result in
significant brand enhancement and sometimes even an
unplanned opportunity.
•Example : Air India with SBI Bank.
•Pepsi with IPL.
11

12. Amity Business School
Innovation Based Branding
•In this approach, partners create entirely new offerings to provide
substantial increases in customer and corporate value. It offers the
potential to grow existing markets and create entirely new ones.
Because both partners are seeking a high level of value creation, the
rewards and risks are often an order of magnitude larger than those
created by other co-branding approaches.
•Example : Apple and Nike
12

13. Amity Business School
Composite Co - Branding
•It refers to use of two renowned brand names in a way that they can
collectively offer a distinct product/ service that could not be possible
individually. The success of composite branding depends upon the
favourability of the ingredient brands and also upon the extent on
complementarities between them.
•a)Joint Venture Co-Branding
e.g.- British Airways & Citibank
•b)Multiple Sponsor Co-Branding
e.g.-Citibank, American Airline & Visa Credit
card partnership
13

14. Amity Business School
Value Chain Co- Branding
Other players in the value chain can create new experiences for the
consumer, which, in turn, can create a level of customer value and
differentiation not possible with promotional or ingredient co-branding.
There are three types of value-chain co-branding:
1.Product Service Co Branding : This approach allows partners to share
industry-specific competencies while at the same time opening previously
unavailable customer bases.
EXAMPLES TO BE ADDED
14

15. Amity Business School
2. Supplier and Retailer Co Branding : These relationships can range
from the natural to the less obvious—even to traditional rivals, which can
help both partners become better positioned against well-entrenched
competitors.
•Starbucks WiFi service from AT&T.
15

16. Amity Business School
3. Alliance Co - Branding
•Globalization and better, broader offerings through
cooperation aside, forming alliances with similar companies
may be crucial for rapidly consolidating industries.
•Example : BMW and Louis Vuitton.
16

17. Amity Business School
Winners
At Co - Branding
17

18. Amity Business School
1. GoPro & Red Bull: "Stratos"
•GoPro doesn't just sell portable cameras, and Red Bull doesn't just sell
energy drinks. Instead, both have established themselves as lifestyle
brands -- in particular, a lifestyle that's action-packed, adventurous,
fearless, and usually pretty extreme.
18

19. Amity Business School
2. BMW & Louis Vuitton: The Art of
Travel
•Car manufacturer BMW and designer Louis Vuitton may not be the most
obvious of pairings. But if you think about it, they have a few important things
in common. If you focus on Louis Vuitton's signature luggage lines, they're
both in the business of travel. They both value luxury. And finally, they're both
well-known, traditional brands that are known for high-quality craftsmanship.
19

20. Amity Business School
3 . Nike & Apple: Nike+
•The co-branding partnership started as a way to bring music from
Apple to Nike customers' workouts using the power of technology:
Nike+iPod created fitness trackers and sneakers and clothing that
tracked activity while connecting people to their tunes.
20

21. Amity Business School
4. BODYGUARD
•Bodyguard is a film starring Salman Khan and Kareena Kapoor in the
lead.
•Movie makers usually use co-branding to generate revenue before the
movie is released.
•In this movie the lead actors are well known brands.
21

22. Amity Business School
Brands Promoted In The Movie
•AUDI: AUDI SUV Q5 has been used extensively in the movie.
•BLACKBERRY : Blackberry cell phones can be seen being used by
Salman khan in the movie.
•SYMBIOSIS UNIVERSITY : Symbiosis Pune campus has been used.
•SONY VAIO: Kareena Kapoor who is the brand ambassador of Sony
Vaio can be seen using it in the movie.
•TIGER SECURITY SERVICES : Salman khan can be seen wearing
uniform of this company.
22

23. Amity Business School
Failures
At Co - Branding
23

24. Amity Business School
1. WOODS-ACCENTURE
•Accenture entered into an agreement with Tiger Woods on October 2003.
•“Tiger Woods' strength, mastery, discipline and relentless focus on winning -
mirrored the characteristics of a high-performance business.
•Wood’s car crash, the revelations of third parties, marital issues were key
reasons for failure. Accenture backed out of an endorsement deal worth an
estimated $7 million a year.
24

25. Amity Business School
2. IPHONE WITH AIRTEL AND VODAFONE
•Excessive marketing was done by both firms, which focused on iphone
as the best phone.
•Launched at price band of Rs. 32000-400000
•But the phones prices became a reason for its failure.
25

26. Amity Business School
3. AT&T AND BRITISH
TELECOMMUNICATION
•It was 50-50 joint venture with $10 billion in assets.
•Main focus was to provide global calls at lower rates.
•The decision to end the partnership, had been widely expected as
–rising losses,
–internal squabbles
–increasing competition from rivals
26