Ingredient co-branding implies using a renowned brand as an element in the production of another renowned brand. When the product is associated with a lifestyle, it keeps consumers pursuing similar goals coming back. Advantages and Disadvantages of Co-branding Co-branding has various advantages, such as - risk-sharing, generation of royalty income, more sales income, greater customer trust on the product, wide scope due to joint advertising, technological benefits, better product image by association with another renowned brand, and greater access to new sources of finance.
Co-branding may affect partner brands in adverse manner. When businesses put together separate brands, they hope to also combine the value and investments that those brands represent. This gives them a potential opportunity to legitimately compete.
References 2 "Building Brand Identity"; Lynn Upshaw; About the Author Lynn Lauren has been a professional writer sincefocusing on the areas of weddings, professional profiles and the banking industry. This card is beneficial to customers who can avail benefits at specific outlets called MTV Citibank club.
The success of composite branding depends upon the favourability of the ingredient brands and also upon the extent on complementarities between them. Example of co-branding - Citibank co-branded with MTV to launch a co-branded debit card.
What Are the Pros of Co-Branding? A consumer may be familiar with one brand and inclined to buy it, but then be put off by its combination with another that he is not as familiar with.
This allows each natural customer base to be attracted to what the other company has to offer. Larger competitors are able to leverage already popular brand names to new products and compete in a way that new businesses may not be able to answer.
Companies can trademark their business name as long as they use it when advertising to customers.
A distinct brand can increase the memorability of a product and build repeat business. You can more quickly build your brand and business if their reputation is solid, and their better-known brand helps your business by bringing in traffic to the stores.
Good branding can increase the value of the product and the company itself. Co-branding is most effective when two different companies come together for a marketing plan. If, as a franchisee, you get to choose which company you co-brand with, seek a complementary one, such as if you sell baked goods, look for a beverage franchise.
From association with another product, a consumer may be able to infer a similar level of quality. They enjoy the convenience of multiple choices under one campaign, but the confusion drives them over to a completely different brand.
There will always be risks involved when marketing new products or services.
Small businesses can have a difficult time establishing themselves in a competitive marketplace. The increased expense of wages and professional fees to develop a brand may or may not exceed the financial benefits of branding.
A good brand reflects the benefits of a product or service and builds recognition and loyalty in customers. A trademark can be any unique word, device, or symbol that distinguishes a company.
The customer response to a co-branding effort is usually positive from an overall perspective. Learning Curve As a franchising corporation, finding co-branding opportunities with experienced franchisors gives you a way to learn the ropes from a more established company.
By utilizing co-branding, they can begin to leverage their advantages in a world where the larger companies have mature customer relationships in place.
The brand manufacture can benefit by having a competitive advantage and the retailer can benefit by enjoying a promotional help from ingredient brand. A brand is meant to communicate meaning and identity; by co-branding multiple products a company can create a deeper impression on the public.
Franchisee owners also may want to look into co-branding as a way to build their business by offering two different types of products. For example, in many parts of the U. This can be especially bothersome for successful brands if the combined target demographics begin to see the two companies or brands as one combined brand instead.Co branding is a similar exercise where instead of using individual products, two brands come together and form a bundle.
Naturally, because brands are far more complex then products, co branding is not an easy exercise. Advantages & Disadvantages of Branding by Madison Garcia - Updated June 27, Branding is the process of creating a name, design or symbol that identifies and differentiates a company from its competitors.
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 (Kolter et al.p.
)/5(1). Co-branding appeals to franchisor corporations that want to team up with another franchise to make more money and build brand. Franchisee owners also may want to look into co-branding as a way to build their business by.
The pros and cons of co-branding show that there is a potential benefit in introducing new products to an established marketplace, but only when a clear message has been offered.
13 Hybrid Virtualization Advantages and Disadvantages. 19 HTML5 Advantages and Disadvantages.
12 Hot Desking Advantages and Disadvantages. Co-branding involves the presentation of multiple brands and products to the public under a single marketing strategy. For instance, a single advertisement may show a person buying a certain brand.Download