Strategic Green Alliances & Strategic Brand Alliances (Co-Branding)

Prepared by Ezgi MerdinAD 644

2AD644 - Branding - Ezgi Merdin

ENVIRONMENTAL PRESSURES FOR GREENING

Satisfying Consumer Demand

Reacting to a Competitor’s Greening Actions

Channel / Supplier Request to Modify Inputs

Internal Pressures

- cost

- philosophy


Green Marketing


CAUTION! - It may take more time & effort to develop than traditional firm-to-firm alliances-Requires information to be shared in a way contrary to usual practices.


Green Marketing Alliances

ENVIRONMENTAL PRESSURE:

Firms have though been experimenting for some time with various forms of collaboration to provide solutions to their environmental problems

green marketing should take greater account of ecological principles of reciprocity, interdependence, holism, bioregionalism and dialogue appear to suggest a meaningful role for some kind of inter-organizational collaboration in any ecocentric management paradigm.

CLASSIFYING GREEN ALLIANCES

type of partners (commercial org.s, NGOs or governmental)

nature or degree of interaction btw partners

- brand alliances, sponsorships etc are to counter existing problems

- co-makership etc are more like experimental




MARKET BASED ENVIRONMENTALISM (MBE) PARADIGM

Environmetalist groups’ reliance on government has shifted towrds commercial orgs.

For firms, it is not a substitute of economic concern but rather integrating ecology for decreased costs or differentiation.




TYPOLOGY OF GREEN ALLIANCES

-Licensing Arrangement-Corporate Sponsorship-Product Endorsement-Task Force-Green Systems Alliance-Green Public Policy Alliance




5 BENEFITS COVERING FOR 3 PRESSURES OF GREEN MARKETING


FINDING THE RIGHT PARTNER

Finding the right alliance partner is extremely important; not every environmental group will be appropriate. A simple three-step process will assist the firm in ensuring that it finds the right partner:

(1) establish alliance objectives;

(2) determine appropriate alliance partner characteristics;

(3) find the appropriate environmental group to form an alliance with.



Crane, A. (1998) Exploring Green Alliances. Journal of Marketing Management, Volume 14, Issue 6, pages 559 - 579

Hartman & Stafford. 1997 Green alliances: building new business with environmental groups. Long Range Planning Volume 30, Issue 2,, Pages 184-196

Mendleson, N and Polonsky, M.]. (1995), "Using Strategic Alliances to Develop Credible Green Marketing", Journal of Consumer Marketing, 12,2, pp. 4-18

Polonsky M J, Rosenberger P J (2001) Re-evaluating green marketing: a strategic approach . Business Horizons (USA) Vol 44 No 5 .

Till, B.D., Nowak, L.I. (2000), "Toward effective use of cause-related marketing alliances", Journal of Product & Brand Management, Vol.9, No. 7, pp 472-84

15


DEFINITION: A long-term brand alliance strategy in which one product is branded and identified simultaneously by two brands.

ENVIRONMENTAL PRESSURES:

Saturation of FMCG markets

Need for differentiation


Green Marketing



Green Marketing


Green Marketing



TYPOLOGY FOR CO-BRANDING


2 STREAMS OF RESEARCH IN CO-BRANDING

First, how customers’ perceptions of a co-brand are influenced by their perceptions of the two parent brands and vice versa;

Secondly, the relative merits of cobranding versus other new productdevelopment strategies, such as line and Brand extensions.



TYPOLOGY OF CO-BRANDING

1.Reach / Awareness (credit cards)

2.Values / Endorsement (washing machine- detergent etc)

3.Branded Physical Component (Lycra, Intel etc...)

4.Complemetary Competence (Sony Ericsson)


Helmig, B., Huber, J. and Leeflang, P. (2008), “Co- branding: The State of the Art”, Schmalenbach Business Review : ZFBF, Vol.60, pp. 359-377.

Henrik, U. (2004), "The brand association base: a conceptual model for strategically leveraging partner brand equity", Journal of Brand Management, Vol. 12 No.2, pp.105-23.

Leuthesser, L., C. Kohli, and R. Suri, 2003, ’2 + 2 = 5? A Framework for using co-branding to leverage a brand’, Journal of Brand Management 11 (1), 35–47.

Panda, T. (2001), “Strategic Advantage through Successful Co-branding”, Faculty, Marketing Indian Institute Management, pp. 1-10.

28