Let’s take phone advantages and disadvantages of co-branding and discover how e-commerce strategy contributed to the country’s recovery from the recent economic recession. Our listing of co-branding examples indicate that the advantages have been prevalent in today’s “participation economy.”
Once the co-branding strategy was first introduced during the 1980s, its initial objectives included the optimization of the rising advertising costs for launching scarpe calcio nike services. With billions of resources being spent on advertisement and marketing of brands, companies formed alliances, and also the merger of their knowledge and reputation produced new and higher quality products and services.
Yet in those days, business strategists were well aware of the pros and cons of the advertising tool; hence, just a few ventured to tread this route.
However, the current decade’s dragging recession, saw a lot of companies struggling for survival, amidst a market that proliferated with products that were much like theirs. Consumer goods carried different brand names but basically promised exactly the same values to the buying public at lower costs. High quality companies whose adverts provided the value for their products, soon found their positions being threatened by consumer items supplied by the less popular brands.
Thus, the business means of forming an alliance with other established brands became a widely-held option, as a means for an organization to remain along with its industry. Successful these 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 on. These co-brandings have created large benefits for stakeholders.
Smaller businesses also entered linking and co-branding with giant brands like Procter & Gamble, Nike, and Starbucks, which dispelled the myth that co-branding is only suitable for large international brands. All these benefited the buying public, who found greater satisfaction using the new business set-ups.
Kevin Roberts, the CEO of Saatchi and Saatchi advertising agency whose industry was threatened through the creation of co-branding strategy, came up with his own method of counter the results of co-branding. At any given time when companies were beginning to regard advertising expenses as discretionary costs, Saatchi and Saatchi introduced a new marketing concept.
The organization launched a marketing movement where consumers were asked to recognize an item according to its values rather than its brand. In doing this, Saatchi’s CEO formed a company called ‘Lovemarks”, along with the country’s top wholesalers and retailers.
Their mission was to instill consumer awareness concerning the value of the merchandise not by the interest in its brand but by being able to satisfy sound, sight, smell, touch and taste. As the end-users, they’ve the right to demand products that are intended from from genuine inspirations, or from a genuine knowledge of their actual living conditions. products should be presented to all of them with total commitment and dedication.
Hence, products recommended by ‘Lovemarks” carry with it a silent endorsement of the positive qualities —that they possess more than just a well known brand name but also have unquestionable value and quality. In no time, Lovemarks was accompanied by more information on businesses whether big or small, which included the likes of GAP, Mary Quant, KFC, Tommy Hilfiger, Yakult, ATP World Tour, Nike and Kiehl’s, simply to name some.
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It would be interesting to consider a closer inspection at some of the most successful and up to date co-branding examples, to discover how consumers are now experiencing the better of both brands at the best values.
1. Adidas (ADDDY) – Polar Electro and their Project Fusion nuove mercurial. Sports apparel by Adidas that is integrated with Polar Electro’s heartbeat, speed and distance monitoring system, called “adiStar Fusion” and adiStar Fusion shoe, which are integrated using the Polar’s s3 Stride Sensor, The Polar WearLink transmitter and The Polar RS800 Running Computer.
2. Apple – Nike Sports Kit – This team-up is definitely an ensemble made up of a set of Nike+ shoes and a group of iPod nano, ipod itouch, iPhone 3GS, or iPhone 4 as well as the Nike + iPod Sport Kit or Sensor, that’s tucked inside a specially-designed built-in pocket under the shoe insole.
3. Gillette (PG) teamed-up using the Art of Shaving to produce a power razor called Fusion Chrome Collection that is compatible only with Gillette’s blade cartridges.
eval(ez_write_tag([[336,280],’brighthub_com-banner-1′,’ezslot_4′]));4. Asus – Garmin and the N??vifone new mobile phones which supplies location-based service. The telephone also has a ‘Where Am I” tracker, which provides users ionformation regarding their exact location all the time. Garmin operates through its subsidiaries which are into designing, developing, manufacturing, and marketing global positioning system (GPS) enabled products, as well as other forms of navigation and communication devices.
5. Dairy Queen – The lady Scouts and the Girl Scout Tagalongs – The skinny Mint Blizzard, a unique special edition which was featured within the Tagalong product, sold more than Ten million in one month.
6. MasterCard – Virgin team-up which aims to offer a prepaid credit card for those who don’t have a bank account or for those who have low credit ratings.
7. Best Western – Harley – Best Western the master of, operates nike magista obra and franchises a chain of hotels in the usa and internationally, furnishes Harley Davidson riding enthusiasts by having an exclusive rewards program to obtain special treatment at their hotels together with a clean wipe-down towel at check-in.
8. Benjamin Moore – Pottery Barn, the second as being a major provider of home furnishings, which it offers via website, catalog and outlets, This combined effort provides an excellent portal for consumers who’re constantly seeking the latest Benjamin Moore color palettes to be used for his or her home improvement projects.
9. Bonne Bell – Dr. Pepper – The latter to be the manufacturer of non-alcoholic beverages in the usa, Canada, Mexico, and also the Caribbean, had become the cosmetic company’s best ally once they came up with Lipsmackers, a great favortie among teen girls.
10. Jack Daniel’s – T.G.I. Friday’s – An old time favorite among consumer’s cobranded choices, since the companies’ team-up in 1997. T.G.I. Friday’s comes with an entire section of its menu dedicated to Jack Daniel’s (BFA) flavored food.
It would also be worth mentioning that some negotiations for co-branding alliances didn’t push through. An example was that of Penske Logistics, Penske Racing Inc., and Penske Racing South Inc. and GM’s Saturn. The main reason was that the Penske Group’s car manufacturer’s contract renewal didn’t push through either. Naturally, these companies are aware that regardless of the benefits of co-branding, you may still find the risks of the disadvantages to consider.