1. Co Branding

2. CO BRANDING
CONCEPT
Definition:
• “The term 'co-branding' is relatively new to the business
vocabulary and is used to encompass a wide range of
marketing activity involving the use of two (and sometimes
more) brands.
– Thus co-branding could be considered to include sponsorships,
where Marlboro lends it name to Ferrari or accountants Ernst
and Young support the Monet exhibition.“
"Competing for Customers and Capital". Southwest Airlines: Put a Little LUV in Your Logo!. customersandcapital.com

3. Kotler defines co-branding as, "two or more well-known brands
combined in an offer" and each brand sponsors expect that the
other brand name will strengthen the brand preference or
purchase intention and hope to reach a new audience
Investopedia
“A marketing partnership between at least two different brands
of goods or services. Co-branding encompasses several different
types of branding partnerships, such as sponsorships. This
strategy typically associates the brands of at least two
companies with a specific good or service”.
http://www.investopedia.com/terms/c/cobranding.asp#ixzz1X6w9FEOw

5. INTENT
• There are three levels of co-branding: market
share, brand extension, and global branding.
• Level 1 includes joining with another company to
penetrate the market
• Level 2 is working to extend the brand based on the
company's current market share
• Level 3 tries to achieve a global strategy by combining
the two brands
Wei-Lun Chang, “Roadmap of Co-branding Positions and Strategies,” Journal of American Academy of Business
,Vol. 15, September, pp. 77-84, 2009.

6. FORMS
Ingredient co-branding: Creating brand equity for materials, components or parts
that are contained within other products.
Examples:
• Betty Crocker’s brownie mix includes Hershey’s chocolate syrup Slide 7
Same-company co-branding. This is when a company with more than one product
promotes their own brands together simultaneously.
Promotional CoBranding:. Co-branding with persons or events. Eg Tiger Accenture
Joint venture co-branding is another form of co-branding defined as two or more
companies going for a strategic alliance to present a product to the target audience.
Slide 10
Example:
• British Airways and Citibank formed a partnership offering a credit
Multiple sponsor co-branding. This form of co-branding involves two or more
companies working together to form a strategic alliance in technology, promotions,
sales, etc.

7. • Betty Crocker – Hershey (Ingredient co-branding)
• Betty Crocker, the brand introduced in 1921 and owned
by General Mills (GIS), is the queen of partnerships. The
company has combined the likes of Hershey (HSY)
and Sunkist to create easy-to-make food products.

8. • Adidas - Polar Electro
• Adidas (ADDDY) and Polar Electro created Project Fusion, which integrates
heart rate and speed and distance monitoring equipment into sports apparel.
• http://images.businessweek.com/ss/09/07/0710_cobranded/2.htm

9. CO-BRANDING IN INDIA
• Co-branded credit cards from LG and SBI, ICICI and
HPCL, Air-Sahara and Standard-Chartered Bank, HSBC
and Star India Bazaar, show that these have spread
across to all possible business sectors in India.
• P&G, India, undertook a co-branding exercise with
the National Association for Blind in the form of
Project Drishti ,
"The Power of Partnership", Utpal Bhaskar, "The Brand Reporter", Oct 16-31 2005.
http://www.afaqsreporter.com/perl/tbr/story.html?id=1316

10. • Boots-Piramal and Saregama-Records jointly
producing a series of music albums of old
Hindi songs.

13. Benefits of Co branding
• According to an article written by Juliette Boone about co-
branding, at least five reasons exist for forming an alliance:
1. to create financial benefits;
2. to provide customers with greater value;
3. to improve on a property's overall image;
4. to strengthen an operation's competitive position; and
5. to create operational advantages.
• Disney worldwide has an agreement with McDonalds whereby
the characters from its new films are distributed as toys with
McDonalds "Happy Meals".

14. Disadvantages
- If a brand has too many Brand Liabilities this can be detrimental to the
other brand.
- Customer dissatisfaction
- Environmental problems
- Product or service failures
- Questionable business practices
- Devaluation
- If one partner files for bankruptcy – an unexpected challenge
- Threats to operation – the partnering organizations may not be
able to work well together
- Conflict of interest if two organizations are looking to attract the same
customer, this can be detrimental to sales of one or both partners
http://www.managementstudyguide.com/co-branding.htm

15. DMRC AND CITIBANK
• India's first co-branded, '2-in-1'
transit credit card
• Launched in May 2008
• Citibank credit card
• Metro Smart card
• Citibank gained through
wider reach while Delhi Metro
gained by greater prospect of
luring in customers who were
looking for bundled benefits.
Source: http://www.business-standard.com/india/news/dmrccitibank-launch-co-branded-transit-credit-card/322235/

16. REASONS FOR SUCCESS
 The reward points accumulated on this card can be redeemed for
free Metro rides
• 2 Reward Points for every Rs.100 spent on the Metro,
• 1 Reward Point for every Rs 100 spent elsewhere
 Offer several benefits - exclusive shopping deals and discounts in
Delhi and the NCR, fuel surcharge waivers
(2.5%) at Indian Oil outlets.
 The special "Delhi Delights" feature - unique deals from some of
the biggest brands in Delhi, including Dominos, Fun Cinemas,
Nirula's, Bercos, India Today and VLCC.
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17. WOODS-ACCENTURE
• Accenture entered into an agreement with
Tiger Woods on October 2003.
• “Tiger Woods' strength, mastery, discipline
and relentless focus on winning - mirrored
the characteristics of a high-performance
business.
• Accenture used Woods to personify its
claimed attributes of integrity and high
performance.
• Accenture made the brand building of Tiger
Woods an equal part of their own brand
building.
http://www.duetsblog.com/2010/01/articles/irreparable-harm-to-the-accenture-brand/

18. FAILURE
• Wood’s car crash, the revelations of
third parties, marital issues were
key reasons for failure.
• Accenture backed out of an
endorsement deal worth an
estimated $7 million a year.
• Six year investment ended abruptly
on a low, negative note rather than
strategically timed graceful
separation.

19. 19

20. BACARDI AND COCA COLA
• Co-branding may help
usage extension.
• Helped to increase
Bacardi’s market
penetration in Europe
• Moreover, Bacardi’s status
is a powerful endorsement
for Coke as the ideal mixer.
• Pairing also benefited Coke,
which wanted to remain the
number one adult soft drink.
Source: http://www.management-hub.com/branding-co.html
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21. 21

22.  Both the telecom giants got together in 1998 to serve as Concert
 It was 50-50 joint venture with $10 billion in assets
 Convergence of applications like information like in the Internet,
communications, such as fax and voice, long distance, and local, and
entertainment
 Main focus was to provide global calls at lower rates.
 They wanted to capture the telecom market which was exploding at that time
with developments in technology.
 Planned to provide telecom services to multinational organizations like global
phones with a single number.
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23. Reasons For Failure
• The decision to end the partnership, had been widely expected as
– rising losses,
– internal squabbles
– increasing competition from rivals
• Management problems and a corporate culture clash prohibited the
desired synergy.
• A victim of the downturn in tech, collapsing telecom prices and huge
debt levels accumulated to pay for new-generation mobile-phone
licenses, Concert bled cash and was expected to rack up losses on the
order of $800 million this year alone.
Source-http://www.forbes.com/2001/10/16/1016concert.html
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24. BODYGUARD
• Bodyguard is a film starring
Salman Khan and Kareena
Kapoor in the lead.
• The movie released on occasion
of Eid.
• The movie has in the span of 6
days managed to do collection
of over Rs. 100cr.
• Movie makers usually use co-
branding to generate revenue
before the movie is released.
• In this movie the lead actors are
well known brands. 24

25. BRANDS PROMOTED IN THE MOVIE
• AUDI: AUDI SUV Q5 has been used extensively in the
movie.
• BLACKBERRY: Blackberry cell phones can be seen being
used by Salman khan in the movie.
• SYMBIOSIS UNIVERSITY: Symbiosis Pune campus has
been used.
• SONY VAIO: Kareena Kapoor who is the brand
ambassador of Sony Vaio can be seen using it in the movie.
• TIGER SECURITY SERVICES: Salman khan can be seen
wearing uniform of this company.
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26. IPHONE WITH AIRTEL AND VODAFONE
• Excessive marketing was done by both firms, which
focused on iphone as the best phone.
• Companies anticipated great sales volume and even
initiated pre-launch booking process.
• Launched at price band of Rs. 32000-400000
• But the phones prices became a reason for its failure.
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27. • Main reason being it was already available in the grey market
at less than Rs. 27000.
• Lack of 3G technology at the time being also hampered sales.
• This caused the potential buyers to purchase the cell from grey
market. Damping the expected sales figures.
• In the early quarters on 2009 – 40000 iphones were imported
and only 20000 were sold, the importers were force to offload
there imports to Sri Lanka and other countries.
• Were as Grey market managed to sell around 80000 pieces in
the same time fame.
• Airtel and Vodafone both failed to analyze the pricing
expectation of the consumer.
SOURCE: http://www.thinkdigit.com/Mobiles-PDAs/Only-20000-iPhones-sold-in-India-distributors_3460.html
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