Do you know about - Co-Branding
Campaign Financing! Again, for I know. Ready to share new things that are useful. You and your friends.Co-branding involves combining two or more brands into a single stock or service. Fellowships engage in co-branding to leverage strong brand. It is becoming a popular company institution to strive for a obvious association between distinct brands that can manufacture synergy. A well executed co-branding strategy can lead to win-win situation for both co-brand partners and can help in realizing unexplored markets or untapped opportunities. Concisely, it is instrumental to cope almost every marketing matter from creating first awareness to building buyer loyalty.
What I said. It is not outcome that the true about Campaign Financing. You read this article for info on anyone need to know is Campaign Financing.How is Co-Branding
Companies form co-branding alliance to fulfill following goals:
► increasing buyer base
► To make financial benefits
► acknowledge to the expressed and latent needs of customers
► To strengthen its competing position
► Introduce a new stock with a strong image
► Creating a new buyer perceived value
► To gain operational benefits
Co-branding is a often practised in fashion and apparel industry. Some of the examples of co-branding are between Nike - Phillips (Electronics Manufacturer) and Adidas -Porsche (car manufacturer). Co-branding can be used for promotion campaigns, to use cartoons on t-shirts, for using logos, distributing through branded retailer etc.
Co-branding Agreements
In a co-branding alliance, both Fellowships should have a association that has inherent to be commercially beneficial to both parties.
Co-branding trade includes rights, obligations and restrictions that are binding on both the parties. It includes important provisions and needs to be considered drafted to give clear guidelines to the parities involved.
Agreement also explains about marketing strategy, brand specifications, confidentiality issues, licensing specifications, warranties, payments and royalties, indemnification, disclaimers, term and termination. Man complex in campaign must be very clear about these issues.
Co-branding can take following forms:
Promotion
Promotional co-branding is the most coarse type of co-branding practiced by companies. Co- branding starts with endorsements with celebrities and institutions. It can improve brand image. Sponsorship can provide with ample opportunities.
Agreement with Supplier
Alliance with suppliers gives easy access to offerings and long continuing relationships which leads to low level of investment. Distinctiveness is very important for such co-branding which is inherent through patent protection.
Agreement with Value Chain members
It aims to give customers altogether new caress and improve buyer value. In value chain co-branding, members in a distribution channel both horizontally and vertically connected form alliance. Such co-branding can be between supplier-retailer, Fellowships gift similar stock or aid or between stock and aid provider.
Innovation
This advent offer opportunity of increase in existing store and exploring new markets. In such alliance Fellowships come together to generate new offerings for customers. Risk and return are two important aspects which need to be considered. Top level administration co-operation and organizational collaboration is important for a victorious agreement.
Benefits of Co-branding
► Increased sales revenue.
► Exploring new markets with minimum expenditure.
► suitable advent when company seeks quicker response.
► access to new source of financing.
► Technological collaboration between two Fellowships give best results than what could be achieved by single company's efforts.
► Royalty income.
► Sharing of risk.
► Fellowships can fetch higher price for value added by supplementary brands connected with it.
► Improved stock image and credibility with other brand association.
► Increased buyer reliance on product.
► Increased coverage and exposure from joint advertising.
► Prospects to manufacture working relationships important to time to come joint undertakings
Problems with Co-branding
► permissible comprehension between co-brand partners is must. Greed to fetch too much in short time may spoil the relations and even effect in failure.
► Once a co-brand take position in market, it becomes difficult to dismantle co-brand and even more difficult to reestablish the brand alone.
► Fellowships having distinct visions and culture are in-compatible for co-branding.
► If brand don't possess sufficient credibility in market, it can negatively sway the other partner's brand.
► Repositioning of brand by one party may adversely sway the other party's brand or campaign.
► When two products are totally distinct and have distinct set of customers, co-branding may not work.
► Inability to meet the requirements of other party may effect in termination of co-branding agreement.
► Legal requirements.
► Mergers and takeovers of one party may prove detrimental to other party.
► time to come environmental changes like political, legal, social, and technological or changes in buyer preferences may give unexpected outcomes.
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