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Advantages And Disadvantages Of Co-Branding

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Co-Branding is the marketing strategy of an involvement of two or more brands in a specific way to enhance their products. This involvement creates new perceptions on the consumer’s minds. This new perception includes both sides attributes; both negatives and positives. Thus, Co-Branding has its advantages and disadvantages which are risks a company will be taking. Other than that, because there are more than one brand involved, the promotion expenses are divided between co-branding companies. This makes it much easier to promote and distribute the product. Co-Branding can occur between minimum of two brands or one company. As one company can Co-brand in the company’s two brands underneath the company together. Moreover, a Co-brand union …show more content…

Both types has their distinctive qualities which can have triumphant results as well as disastrous results. First Type of Co-Branding is Ingredient Co-Branding. As the name also gives its hints, ingredient co-branding implies the usage of an element or some elements of a well-known brand in the production of another well-known brand. With Ingredient Co-Branding the brand equity of the ingredient brand is fused into the primary brand. Thus, the ingredient brand creates a sub-perception on this new product in the buyer’s mind. In example, Dell using INTEL’s processors as well as their brand mark on their laptops is Ingredient Co-Branding. INTEL is the ingredient brand while Dell is the primary brand. This is already a general strategy almost all the computer companies adapt (MSG, n.d). In another example YATAŞ, a Turkish bed company uses Woolmark standard wool and uses their marks and names on every promotion it has. Other than the advantages this gives in the previous example, in this one this co-branding gives YATAŞ a huge competitive advantage. The trademark of Woolmark creates a perception that YATAŞ beds are in better quality compared to other beds, because they use regular wool. Thus, YATAŞ can sell more and sell expensive (YataşProjects, n.d). In order to use an Ingredient Co-Branding strategy the ingredient brand should be unique says “MSG Experts” (Co-branding - Meaning, Types and …show more content…

Co-branding can be done by using a primary brand and a secondary brand which contributes on a very small scale or co-branding can be done by equally including both parties. These strategies should be picked very carefully as one can be suicidal for a product and another can be triumphant. Finally co-branding as all marketing strategies involve, has its cons and pros. The disadvantages of co-branding can cause a minor party to get diluted in an alliance, can cause the product get harmed in the long term due to the changes in the parties and also can cause a total failure for the product because of our wrong choices for our partners. On the other hand, the pros of this strategy involves the division of the burdens of promotions and distributions, usage of resources effectively, gaining a broader audience and sharing the risks of the

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