What are the aspects that one should consider while co-branding with another product?

This is the most important piece of advice for any co-branding effort, any acquisition or any other major business move.  Especially for the small to mid-sized privately owned enterprise, which typically has more discretionary freedom in its business decisions, it is critical that the reasons for the acquisition are clearly and quantifiably understood by all members of the management team.  

It is too easy to simply proceed with an acquisition because it looks good at the level of superficial analysis and it “just feels right” to the small business entrepreneur.  Clear identification of the strategic motivation and expected tactical outcomes of the deal will help you know in the year following the acquisition whether you made the right move.  This will pay huge dividends by establishing the template for successful future acquisitions.

I would look at the following;

1. The target group of the brand (it has to match my criterion of reach too)

2. Brand status (where is the communication and positioning going to be? Is it equally applicable to my brand or not?)

3. What is the media strength of the brand? (is it a brand that will attract media and be at centre stage? That helps because its a very automatic positioning for me too:))

These are the three major areas for me. I would then love to be a parasite Marketeer :D

Thanks for the referral Jayant and once agin kudos for an amazing topic for debate!! I bet Shiuli and Kashif would love to be a part of this too alongwith Mr. Kasuri and Mr. Arikrishnan and a Jayaram Rajgopal!! Waiting to hear their views!!

Co-branding is a form of trademark licensing. Accordingly, the potential product defect liability inherent in any trademark licensing deal is also a factor in co-branding arrangements. Each company involved in a co-branding deal should be aware that affixing their brands to a product could make them co-parties in a product liability lawsuit.

A company looking to co-brand should be aware not only of the shared risk created by co-branding arrangements, but also of the underlying principles that create this risk. A fundamental principle of trademark law is that trademarks are a quality and source indicator. When a consumer sees a highly esteemed mark on a product, the consumer believes it is a quality product from a trusted source.

This principle creates an obligation on a trademark owner to exercise control over the quality of the products sold under its mark. In fact, a trademark owner who fails to insure that the goods bearing his mark are of good quality risks losing rights in that mark. However, exercising too much control can create additional liability.

The first and foremost thing to remember is that both the brands should be benefetting from the association, otherwise this would not last long and when such associations break they cause more harm than good they did when they were associated.

For this to happen I agree with Meena that the management teams should be like minded and have a common vision .

Also the brands should have similiar target audience, have a common philosophy and approach.

thanks Jayant for a nice topic.

In todays market place given the time and budget constraints, marketers are eager to co-brand their product with a number of products. This would only prove to be harmful if the other partner is not equal in terms of brand equity and market strengths. It would be a problem even if the brand is lower or higher than your brand in terms of its strengths and charachteristics. If it is lower then the other brand tends to gain from your brands equity and if it is higher then your brand would get lost. Hence the need to have a co-branding arrangement with an equal partner.

Also one has to ensure that the branding arrangements should be equal in all respects. Even in the media shared for example.

I agree with Vishnu & James, but also like to add one more idea to this discussion. The two teams should be compatible & like minded. Anyone who has lived through an acquisition knows the importance of management team compatibility.  After the deal is done, a tremendous amount of effort is required to effectively combine the two companies.  Regardless of the determination on the part of both management teams to make the deal work, the process is complicated, resource-taxing and, in most cases, personal.  

The cultural compatibility of the teams can be the critical factor in a smooth transition of ownership.  Take whatever steps are necessary before inking the deal to assess whether this part of the process will be a boon or a boat anchor for moving forward.

Thanks Mr.Jayant Vishnu for the referral.

Co-branding is a marketing arrangement between two parties to help each other to achieve their objectives. However great care should be focused on series of steps in selection process. Otherwise it will results in confusion and conflict among the initiators.

Under the approach of innovative based co-branding, partners co-create entirely new offerings to provide substantial increases in customers and corporate value more than other approaches, it offers the potential to grow existing markets and create entirely new ones. This is because both parties are seeking a higher level of value creation, the rewards, and risks are often an order of magnitude larger than those created by other co-branding approaches. For this reasons innovative based co-branding requires a higher level of senior executive attention and organizational collaboration.

Therefore, this approach will ensure that it enhances the customer base, increases profitability, cater the needs of customers through extended production lines, strengthens competitive position through a higher market share, creates new customer-perceived value, and yields operational benefits through reduced cost.  

CO-BRANDING in today's world is a tool for the brands to increase their brand visibility and credibility. This strategy can be win win for associating brands even if their areas of interest are different.

A consumer today has been filled by different brands. these brands can be from a same parent company or from other different fields. By this one can conclude that a single human being can be target customers for different brands. An example can be a TRAVELER for brands , Reebok, SOTC, Club Mahindra, Kingfisher Arlines, Indian Railways, Credit Card companies etc... list can fill a page. 

So keeping this thing in mind some aspects which should be taken care to maximize the result of association between brands can be:

• Target customers should have an interest (tangible & intangible) in both the brands.
• Both brands should have and interest in association.
• Tangibles benefits should be targeted more than intangible benefits.
• A proper before association like A mobile brand with mobile accessories brand, as this will not benefit mobile brand much.

Co-branding will also include selling of products ( in cases ) together. So if one brand fails to deliver as promised both of them will be affected.

So as per knowledge a due care of the facts & figures should be taken care.