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CO-BRANDING
Nike and Apple brought music and exercise together when they
developed the Nike + iPod
Sports Kit a wireless system that allows users listening to
music as well as to see how !ar and
!ast they have run and the amount o! calories they have burnt"
#o achieve this Apple computers
$nc" provided a tiny i%Pod and there was a wireless system that
received data !rom a sensor in theinsole o! the shoes"
All in all it looks a brilliant idea and a win%win situation !or
both companies" #his is a classic
example o! co%branding a concept o! bringing two or more brands
together under one umbrella
!or a mutual purpose"
&o%branding sometimes known as cross%plat!orm marketing is a
strategic partnership between
pro!essionals or organi'ations that recogni'e the value o!
leveraging each other(s reputation to
ampli!y awareness about a product service event or cause"
#ypical co branding includes
combining the strongest elements o! a product with the best
complementary brands to o!!er newgoods and services" Also a common
practice is the utili'ation o! two or more brands to name a
new product"
Benefits of co branding:
)" *each more o! the consumers who are currently customers o!
something else"
" Sharing o! marketing costs especially in ma,or campaigns that
can cost in excess o!
-S.)// million"
0" 1ore bene!its to present customers enhance brand loyalty and
widen customer base"
2" #alent expertise and creativity can be shared on the basis o!
the principle that success o!
one will bring success o! the other"
3" &o%branding can be an e!!ective strategy to survive down
times and even grow"
Types of co branding:
Ingredient co-branding: $t implies using a renowned brand as an
element in the
production o! another renowned brand. #he ingredient should
either be a ma,or brand or
should be protected by a patent" $ngredient co%branding leads to
better 4uality products
superior promotions more access to distribution channel and
greater pro!its" #he seller o!
ingredient brand en,oys long%term customer relations" #he brand
manu!acture can bene!it
by having a competitive advantage and the retailer can bene!it
by en,oying a promotional
help !rom ingredient brand"
Eg: Intel started te !Intel inside" ca#paign $%&&%' in
association (it co#p)ter
#an)fact)rers li*e Dell+ , and eno/o (o (ere licensed to )se
Intel0s logo. Tey
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red)ced teir o(n ad/ertising b)t still teir sare rose to &12
by %&&3 in te
#icroprocessor #ar*et.
Co#posite Co-Branding: 5ere two or more brands come together to
create a completely
new product using the capabilities o! both and that could not be
possible individually"#his co%branding is success!ul when the
brands coming together really complement eachother in the new
o!!ering" Eg: Citiban* tied )p (it 4T5 to la)nc a co-brandeddebit
card. It ga/e te prospecti/e card #e#bers an opport)nity to fly
free to
4alaysia or dine (it 4T5 56s. Te card also offered c)sto#ers
benefits at certain
o)tlets called 4T5 Citiban* Cl)b.
Basic considerations for co branding:
$t is important to evaluate any co%branding opportunity be!ore
committing it as certain things
have to be in place !or success to be achieved"
)" -nless customers are willing to receive the real bene!its
!rom the exercise"
" #he target audiences o! the partners should have similar types
o! pro!ile demographic
and psychographic"
0" #he partners should have similar brand values otherwise there
will be signi!icant strategy
problems and working together may well be problematic"
Disad/antages of co-branding:
)" &o%branding may !ail when the two products have di!!erent
market and are entirely
di!!erent"
" 6orging a misalliance with another brand which cannot keep up
with consumer(s
demands may tend to drag down the other brand(s reputation"
0" Adverse experience o! customers o! one component brand may
a!!ect the co%brand(s
integrity and reputation"
