Co branding solutions 18 02-11

CO-BRANDING SOLUTIONS:WHAT, WHEN & WHY?

February 18, 2011 1

WHAT IS CO-BRANDING?

February 18, 2011 2

WHEN TWO OR MORE PARTIES COME TOGETHER,

FOR A WIN-WIN END GOAL…

WIN-WIN Partnership Between Countries….

February 18, 2011 3

WIN-WIN Partnership between Companies: 1 + 1 > 2 Formula

February 18, 2011 4

TYPES OF CO-BRANDING PARTNERSHIPS..FIVE BROAD CATEGORIES OF CO-BRANDING

February 18, 2011 5

1. CO-BRANDING FOR PROMOTIONS

February 18, 2011 6

Best Western & Harley Davidson

February 18, 2011 7

Best Western runs an exclusive rewards program for Harley Davidson

enthusiasts. Riders who participate get special treatment at the hotel

including a clean wipe-down towel at check-in.

South-West + SeaWorld Promotions

February 18, 2011 8

SeaWorld - Southwest

Southwest Airlines has three Shamu planes in

its fleet.

Passengers are occasionally visited by penguins

before take-off.

February 18, 2011 9

Fiat - Mattel

To celebrate Barbie’s 50th anniversary, Mattel and Fiat created the 500 Barbie.

The car comes in nail-polish-pink and features lip gloss in the glove

compartment.

2. CO-BRANDING WITH VENDORS/ SUPPLIERS

February 18, 2011 10

Intel’s Presence Can Add Value ….

February 18, 2011 11

Alliance with supplier gives easy access to offerings and long lasting

relationships which leads to low level of investment.

Distinctiveness is very important for such co-branding which is possible

through patent protection.

3. CO-BRANDING FOR ALLIANCES

February 18, 2011 12

Meeting Diverse Needs of the Air Traveler…

February 18, 2011 13

It aims to give customers altogether new experience and enhance

customer value. Members in a distribution channel both horizontally

and vertically linked form alliance.

Hotels

Travel Agents

Car Rentals

Insurance

4. CO-BRANDING INNOVATIVE SOLUTIONS

FOR EXISTING CONSUMERS

February 18, 2011 14

Shoes that Sing!

February 18, 2011 15

Apple - Nike

Nike and Apple brought

music and exercise together

when they developed the

Sports Kit, a wireless

system that allows shoes to

talk to an iPod.

Clothes That Are Health Trackers…

February 18, 2011 16

Adidas - Polar Electro

Adidas and created Project Fusion, which

integrates heart rate and speed and distance

monitoring equipment into sports apparel.

5. CO-BRANDING FOR EXPLORING

NEW TARGET SEGMENTS

February 18, 2011 17

Exploring the Un-banked Segment…

February 18, 2011 18

MasterCard - Virgin

Virgin & MasterCard prepaid card targeted at individuals who don’t

have a bank account or have a low credit score.

WHY CO-BRANDING?

February 18, 2011 19

What Motivates Co-Branding?

► Expanding customer base – reaching out to new customers

► Improved sales and profits for both companies

► Fulfil expressed and latent needs of customers

► To strengthen Brand Equity of partners

► New product innovation and introduction

► Innovate in enhancing customer perceived value

► Achieve scale benefits : production, supply chain, marketing & advertising

February 18, 2011 20

The Traps – Things to Watch Out

• True sense of partnership & give and take. Suspicion and greed can spoil the party.

• It is a long term commitment: how easy will it be for Hero now to dismantle from

Hero Honda?

• Lack of synergy in any aspect could be a potential trap: consumer group, appetite

for risk, growth ambitions, etc..

• Equity of both brands should leverage each other to make a stronger co-brand.

• Equity changes in one partner brand could impact Co-Brand image.

• Legal requirements: What happens upon merger or acquisition takes place?

February 18, 2011 21

THANK YOU

PRANESH.MISRA@BRANDSCAPESWORLDWIDE.COM

CELL: +919820020906

February 18, 2011 22