Today’s market is suffering from a syndrome of sameness where all the products offered to the customers look very similar. This similarity is not only from the sameness in the physical brand element but also in the symbolic value proposition offered to the market. In this situation marketers are searching for alternative method of branding for creating sustainable competitive advantage.
Co-branding as an alternative branding proposition is fast making grounds due to various factors. The opening of Indian economy with spate of entries by multinationals makes it evident that the Indian consumer is going to face lot of products with co branding options.
Thus, can Co-Branding help in better brand building??
Yes, I agree Co-Branding does help in bettre brand building.Co-branding strategies are increasing used to fend off heavy competition and to gain more marketplace exposure. The main advantages are that companies can pool together their resources, reduce the cost of production introduction and generate greater sales.
Co-branding also allow brands with lesser reputation to leverage on partner brands of higher reputation. The presence of higher quality brands reinforces the perception of quality to their partner brands
I don't completely agree that Co-Branding can help in better brand building.Despite the increasing applications, the potential disadvantages associated with co-branding strategies are the risks and lack of control in consumers' perception towards the "new" co-branded product. Mismatch could occur when combining two brands, thus co-branding may affect partner brands negatively.
In addition, overall brand equity could be damage when consumers attribute any negative experience with one constituent brand. Hence, either partner in co-branding can undermine the credibility of each another.
Co-Branding can pose the threat of differential advantage on one partner and generate potential competitors. Brands should decide whether they would like to co-brand or extend their brands by increasing product or service range. Many a times, co-branding effects one partner positively and the other negatively.
Co-branding can assist smaller brands to gain visibility. Just see how computer manufacturers use it. acer and lenovo were unknown, but they are now global brands as people know there's intel inside!, similarly HTC smartphone is using google android to gain visibility. By
Abhijit Anand Prabhudan, Admin/Facilities Manager, Ca*****
| 03 13 2011 15:06:13 +0000
Sir, With due respect to state that , I am Deepak kumar.I completed my post diploma in tool design and cad cam from Indo German tool room (Aurangabad).I completed my diploma from Central institute in plastics engineering and technology. I know auto cad(2004-2009),master cam(x10),mechanical desktop(2006),catia(v5r17),pro-e(wildfire4),unigraohics(nx6). I know mould, press tool design. Sir if any company’s vacancies fulfill my qualification than pls inform me Sir I hope u give me positive reply Yours faithfully Deepak kumar Aurangabad Mo-09579619124 Email-kumardeepak604@gmail.com Sir, With due respect to state that , I am Deepak kumar.I completed my post diploma in tool design and cad cam from Indo German tool room (Aurangabad).I completed my diploma from Central institute in plastics engineering and technology. I know auto cad(2004-2009),master cam(x10),mechanical desktop(2006),catia(v5r17),pro-e(wildfire4),unigraohics(nx6). I know mould, press tool design. Sir if any company’s vacancies fulfill my qualification than pls inform me Sir I hope u give me positive reply Yours faithfully Deepak kumar Aurangabad Mo-09579619124 Email-kumardeepak604@gmail.com Sir, With due respect to state that , I am Deepak kumar.I completed my post diploma in tool design and cad cam from Indo German tool room (Aurangabad).I completed my diploma from Central institute in plastics engineering and technology. I know auto cad(2004-2009),master cam(x10),mechanical desktop(2006),catia(v5r17),pro-e(wildfire4),unigraohics(nx6). I know mould, press tool design. Sir if any company’s vacancies fulfill my qualification than pls inform me Sir I hope u give me positive reply Yours faithfully Deepak kumar Aurangabad Mo-09579619124 Email-kumardeepak604@gmail.com By
DEEPAK KUMAR, STUDENT, INDO GERMAN TOOL ROOM.AURANGABAD
| 04 12 2010 18:47:00 +0000
Sir I humbly place before you that Business is risk bearing to the bear minimum or to the optimum level. Before entering into the agreement between the two sides for co-branding, the pros & cons are very well analyzed. Without struggle one can not succeed in business. If one thinks the negative side, he will not be able to concentrate on his business and he will face the brunt of sales. BUT if he concentrates on how to overcome the negative aspects, he will definitely find the ways to win the game. For example, if we want to travel on the sea, is it possible without a boat or ship. If a small hole in the boat or ship, that will sink. SO HERE A BOAT OR SHIP IS DESIGNED FOR THE WORST.
In business there are negative side & positive side. It depends upon the business people's ability to convert the negative into positive. IN LIFE AS WELL AS IN BUSINESS EVERYBODY IS INTERDEPENDENT. It is a art of applying reasoning and possibility and helping each other in business as well as in life.
Similarly, the co-branding is to help each other for the mutual benefits. There is no big or small man, both are equal. The ego will ruin the business. Business is give and take policy towards the prosperity of both. In CO_BRANDING, the strength is exchanged for the benefit of both. It should be construed like this and not in the different way.
Confidence, Capital and Risk bearing give hope to start a business & earn profit and then the business has been developed in a big way with the help of modern business practice & technology etc. otherwise business can not be come into being. IN BUSINESS ONE SHOULD HAVE ALWAYS THE POSITIVE THINKING AND SHOULD TRY TO SET ASIDE THE NEGATIVE ASPECTS OF BUSINESS, like designing for the worst.
Co-branding is one of the most important tool to provide strength to the brand which is difficult to convey through words. Like Boost used Kapil Dev assure its customer that it gives enrgy. But of course it can not be generalised. By
Munawwar Hussain, Commercial Manager, Al SAWANI
| 04 11 2010 13:59:39 +0000
Coz incase of co-branding two companies are joining togather,,,,,,it means as indivisually they have their own name space as good brand....But when those two brands comes togather becomes more stronger than it was as individually....and it creates the interest into the person that why those two brands coming 2gather and making 1 brand.....so definetly marketting would become more and also the name of both.........
well Mr.Naushad, Your argument is correct to a extent of 25 percent only. In my opinion, the objective of co-branding is to sell more by way of association/synergy. The question of co-branding arises in case of a new product or a product which is weak in the market and further they need image boosting in order to establish in the market. Establishing the brand name for a new product will take long time and the weak product here means not in the sense of quality but not able to do brand building due to, say, the financial constraints of the company or any other reasons like weak marketing set up.
So under the circumstances, the new product or the weak product needs some sort marketing synergy or marketing association or a co-branding arrangement come into being in order to leverage the products, build reputation, and to enhance the success for these products. This efforts are brand building in the market segments.
It is true, your stand, co-branding never happen between two equals. When they are equal or strong in their position, there is no need for it.
When a brand/product is not able to establish a unique place in the market only needs marketing synergy or co-branding with established brands, to have support from the established successful brands. Of late, the marketing synergy or co-branding have been increasingly practiced.
Under co-branding systems, there may be a basket of products or product mix. Here the business people see which product mix gives better contribution compared to other and like this they will do the analysis. Naturally the product which is not contributing up to the expectation may be modified or improved to give better service to the customers.So here comes, the established successful brand helps to create differentiation through brand associations that go beyond the limits of the feature and attributes of the product itself. successful brands provide quality assurance to customers and can be leveraged to introduce new products through line and brand extensions- that is applying the brands to other products in either the same or different product categories.
Yes definitely it will as when one branded product associates with the weaker brand, the weaker brand gets a leverage in the market and when the weaker brand once deliver the better quality it gets enhanced. It has become a most phenomenal strategy which almost every marketers is doing to upgrade the business. But while co-branding the stronger brand must check out with which brand it is associating and what will the result of that. Otherwise the table will turn and the given strategy will disturb the reputed image of the stronger brand.
Because of the competitive nature of business today, nearly all industries can benefit from a branded product. All of the traditionally brand-conscious industries, including fashion, restaurants and consumer goods, are being forced to continue to brand heavily — perhaps even more strategically than they ever have in the past. Financial services, which were one of the last frontiers, are even beginning to see the importance of branding by tagging banking packages and even mutual funds with catchy names. Even industrial markets, where cost is usually more of a loyalty building factor, has seen brand names creep in. For example, Tyvek, a DuPont fiber, improbably one of the best known industrial branded products. Other industries in which branding is a must include: * Fast food * High-tech * Beverages * Packaged Goods * Petroleum * Entertainment * Retail * Auto * Pharmaceutical By
ravindra shrivastava, Information Systems(MIS)-Manager, iifs pvt ltd
| 04 10 2010 09:51:20 +0000
There are different strategic options available for building a strong brand in the market. Brand image building is a long term process.Normally all the marketers seek growth through development of new product and they find markets cluttered with competition. So it is very difficult to establish a unique position for a new product/brands.
Therefore, here comes the technique of co-branding. Co-branding marketing strategy is related to the concept of brand association. Co-branding is an alternative method to develop a new product/brand with the association of a well established successful brands to help to create a success for the new one. It is a process for developing new products/brands that involves combining two or more well known brands into a single product. Co-branding is a frame work for leveraging a brand and aiming at building reputations in order to enhance the success of their products.
In certain cases, co-branding links the unknown firm in a new market with established firms in a mature markets. This helps the unknown firms to signal a high product quality and establish their reputation. Hence in view of the above co-branding does help brand building.
Yes i am agree with the idea that co-branding can help in better brand building...because when a company associates with another company it creates great awareness and perception of consumer....it increase the competitive position and customer base...****** By
Farrukh Zaman, BD Senior Executive, Telerex etech Pvt Ltd.
| 04 09 2010 12:49:20 +0000
Co-Branding, I feel is the next step in "BARTER" policy. Both the products have to be mutually dependent on each other, to gain maximum leverage from the market. It should also help in having a healthy competition between the two products tied together as a brand partner. Co-Branding is really helpful as it saves a lot in terms of advertising. The new product associating with already established product should see an increase in sales due to the goodwill prevailing in the market. In today's world, Co-Branding is the best tool in convincing the consumer.
the co branding the necessity of that time...because if have more co brands means u can capture more area of interest...that's a very simple logic....but a some risk with that.......
Yes,Co- Branding helps in better brand building but only when both brands are complimentary to each other. They feed on each other brand equity. A lot of promotions have been successfully made with the help of this strategy and some have failed too due to poor synergy between brands. Therefore it is very important to partner with brands which will compliment your brand and enhance the value proposition for both the products. As mentioned by Purvi, the main advantages are that resources, especially financial resources can be pooled effectively and a better promotional campaign can be created thus benefiting the participating brands. By
Prashant Welling, Partner/Principal/VP, Innotech Enterprises
| 04 07 2010 06:17:55 +0000
hi 2 all, Yes I belive Co branding is a way ahead for most of the companies, keeping in mind that end Customers have varies requirements but would like to get the best deal for the value of money he/she is going to spend. Thus it is Individual companies responsibility to tag with other brand which might not be conflicting but coexisting together and providing the end customer a better deal Thus Making it a Win-Win Situation for all the parties mainly Customer.
Of Course it is a Tough choice for 2 different organizations to perform thier Ideas together but to ensure Customers Share of Business, The Brands has to choose wisely thier cobranding partners.
Best Examples i have seen: Macdonald + Coke, (if cobranding doesnt exist in these 2 different products the customer might not be fully satisfied with a Mac Burger & it is a sheer loss for Coke to loose a captive audience, & when Cobranded = Customer enjoys the Full Deal & thus both the Brands enjoy share of business from the customer.)
First of all i feel you are a bit confused. What do you mean by refering to the fact that the products offered in todays market are similar. By similarity do you mean to just product attributes or the competition a product faces. Either way even in a niche market there are various ways a product can differentiate itself from the co petitor - it could be the physical product attributes, service attributes, locational advantages, network and so on and so forth. Even if everything were to match, one can still differentiate your brand with the competition on the price front. Lets take an example of the soft drinks market - Coke and Pepsi are equal in most of the aspects - price, availability, design etc. but differ greatly in taste that sets it apart.
Even in detergents with the claim of "washes the whitest" being done to death by most brands, price plays a distinctive advantage. Sorry for having diverted from the main topic. But to answer your main query, yes co-branding does greatly help a brand but not just becuase it is in a cliched segment but because it is yet another tool to market a brand with. But like i said in my earlier post on co-branding one has to ensure that it is only between equals from different industry segments and with a relevance to the TA of the brand.
For eg one cant co-brand a travel brand with a detergent company whereas one can co-brand atravel company with a food chain etc.
Precisely, the advantages of Co-branding (if here it means two companies forming an alliance to work) are economies of scale, technology sharing, potential of securing more market share, benefits from learning curve of the partner, power for bargaining with the vendors and customers, sharing the resources etc...
Yes this will certainly help as strategies of two different brands will be combined which will last in better outcome. people behind both brands had stormed there minds for the best possible strategies and the best will be applied for a successful outcome.
Yes I agree Co-branding helps in better brand buildinf coz due to this qualty of the brand gets automatically improved.And manufacturers try to add more features than other competators which ultimately helps customers he gets different options with wide range of features and cost also gets decreased.
I agree co branding help but there must be the right synergy between the two products.
Though there is a small risk but it will help the product immensely and sometimes it can help a smaller produt to piggy bank on the more famous or well known product
U agree to my argument that CO-BRANDING NEVER HAPPENS between Two Equally Strong Brands... it only happens when One Brand is New & weaker to the other...
That means im right when I said that it is like TAKING A LIFT... & the Stronger Brand always emerges a victor, it would be like - A Lion makes a Kill... but a Jackal or a Hyena also gets some pittance of a share out of it.They are called SCAVENGERS !
Co-Branding can create Confusion in the minds of the Buyers & at times due to One Brand's weakness, the other may Suffer.
Co-Branding, generally never happens between TWO EQUAL BRANDS... In that case the Smaller Brand, always appears to be " Taking a LIFT" & just Tags along the Bigger Brother.
I don't agree that co-branding would help better brand building. There is nothing really a particular brand would achieve by associating itself with another brand. Whatever a particular brand's value proposition is it can be communicated through stand alone campaigns. Co-branding only creates confusion in consumer's mind and may effect their behaviour adversely. Also co-branding is done more keeping in mind short term advantages, to get leverage for a short period of time. One must be vigilant enough to not let such short term views affect the long term positioning of the brand.
Co-branding requires extreme caution and the returns are not as great. This makes well managed stand alone campaigns a better proposition compared to co-branding.
i dont think that co-branding can be of the profit in fact it creates much more confusion in the customers or the clients of the organisation those who are versed with only single product for example
recently a company called aegon religare life insurance started their activities in india due to the existence of another organisation called religare and even that was in the same business many people those who were not aware about the fact that both are different they thought both were one and the same and when they came to know the reality they thought that either the company or the sales person cheated them but in fact in no ways the concern person was in loss but still they are in confusion, it is a smaller example to explain the co-branding things but as a matter of fact there are plenty lot of companies which do the same thing
Co branding may help the market for establishment of poor quality brands. This higher time for government to bring rules to show the actual quality of the product to be labelled for customers to choose their actual product. we know all what glittering are not gold.
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