IMPORTANCE OF Co-Branding
Co-Branding is the strategy that strives to capture the synergism of combining two well-known Brands into a third, unique Branded product
Co-Branding is a form of cooperation between two Brands with significant consumer recognition that results in the creation and introduction of a new product on which both Brands are visible. Although Co-Branding results in the creation and introduction of a new product through collaboration, the current literature on coBranding focuses on either the creation or the introduction of the product.
Co-Branding is a marketing arrangement to utilize multiple Brand names on a single product or service. Basically, it involves combining two or more well-known Brands into a single product. The constituent Brands can assist each other in achieving their objectives. Used properly, Co-Branding has the potential to achieve “best of all worlds” synergy that capitalizes on the unique strengths of each contributing Brand. Successful examples include Coach and Lexus, Diet Coke and Nutra Sweet, Pillsbury Brownies and Nestle Chocolate, Crocs and Disney, IBM and Intel, Betty Crocker and Hershey, Breyers and Hershey, Lays and KC Masterpiece, Sony and Kodak, and so forth. These Co-Brandings have created large benefits for stakeholders. However sometimes Co-Branding can pose the threat of differential advantage on one partner and generate potential competitors. Many a times, Co-Branding effects one partner positively and the other negatively.
Benefits of Application Co-Branding:
Enhances Brand awareness and recognition.
Establishes credibility in the market, with clients/or patients, by partnering with a trusted software provider.
Customizes the application and reports to represent your company, and maximize Brand presence.
Provides a cost savings, allowing you to capitalize on increased customer awareness without the hassle of developing your own technology or marketing solution.
Eg: Taco Bell And Doritos
The Taco bell Doritos co-Branded Doritos Locos Tacos is one of the most successful food co-Brands. The co-Brand strategy was carried out through a new product – Doritos Locos Tacos. This was a Taco-Bell shell made out of Nacho Cheese Doritos snack chips. Within the first 10 weeks of this co-Brand launch, 100 million products were sold!
Taco Bell-Doritos used the specific matching ingredients of their Brand to create an ingredient co-Brand. This was possible since the following aspects of both Brands are so well-aligned:
Food niche – crunchy snack food
Packaged and mobile product
Well-established in the U.S. market
VISTARA ANNOUNCED A CODESHARE PARTNERSHIP WITH AIR CANADA
This the best example of Co-Branding :
Vistara Airlines announced a codeshare partnership with AirCanada.
With this Partnership and Codeshare agreement, the passengers can now enjoy Vistara’s extensive network of domestic destinations.
The AirCanada and Vistara flyers can avail benefits of this partnership on routes they fly frequently.
The codeshare agreement helps travelers to fly between India and destinations in Canadian cities
Sulochana Arora [MBA]
AirCrews Aviation Pvt. Ltd.
Post a Comment