11.5.how can companies combine products to create strong co brands or ingredient brands...
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Transcript of 11.5.how can companies combine products to create strong co brands or ingredient brands...
Setting
Product Strategy
How can companies combine products to create strong co-brands or ingredient brands?
Advantages of Co-Branding??
• Increased potential for market sales• Low cost of introduction• Learn about the approach of other
companies
Disadvantages of Co-Branding??
• Customer expect high quality• Dissatisfaction will have higher
negative repercussion• Brand alignment with another brand
in consumer’s mind
So when to go for Co-Branding?
When • Brand equity exists• The products are Complementary • Values, capabilities, constraints and
goals of the companies align
Price considerations in Co-Branding
• Sum is less than parts• Avoid conflicting promotions• Be wise in offering large rebates on
individual products• Consider the experience and
knowledge of the customer
Caution: Avoid price war in Single product firm Vs Multi product firm
Ingredient branding
• Ingredient branding is a special case of cobranding
• It creates brand equity for materials, components or parts that are necessarily contained within one another
Example for ingredient branding
PC manufactures pay significant premium to intel instead of buying an equivalent component elsewhere
CreditsBackground
IDRA; www.preventconnect.org
4 www.brighthub.comwww.quora.com
10 www.intel.in
Based on Chapter 12 of Marketing Management by Kotler Keller Koshy Jha 14th edition
Disclaimer"Created by Vishnupriya Aryabhumi, IITMadras, during an internship by
Prof. Sameer Mathur, IIMLucknow.www.IIMInternship.com"