...CO-BRANDING OF CREDIT CARDS: AS A TOOL FOR CUSTOMER ACCQUISITION Contents CO BRANDING: .......................................................................................................................................... 3 INTRODUCTION: ....................................................................................................................................... 3 TYPES OF CO BRANDING: ...................................................................................................................... 4 Reach & Awareness Co-branding ............................................................................................................. 4 Value Endorsement Co-branding .............................................................................................................. 4 Ingredient Co-branding ............................................................................................................................. 5 Complementary Competence Co-branding ............................................................................................... 5 The Power of Co-Branding ........................................................................................................................... 5 Benefits of Co Branding ............................................................................................................................... 7 Problems with Co-branding .........................................................................
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...How the co-branding affect company According to Srinivasan (2007), Co-branding is the marriage between two brands with different backgrounds, which focuses on combination of the partners’ resources and best capacities. In this competitive society, hundreds of forward-looking companies are trying to expand their business scale and impact by doing brand alliance and refresh themselves by lowering prices using new technologies. According to Mckinsey & Company Statistics: the number of joint enterprises in worldwide in 1994 - including co-branding company, involving millions of dollars assets with an annual rate of 40% growth.(1994) That is because consumers become more and more dependent on brands, and become more difficult for company if they want to keep the strong competitiveness and get more profits. Co-branding provides the chance for this situation. However, the co-branding does not fit for every company and does not bring the benefit for them. There are also exist some problems not only in culture but also between in partners. So I will talk about how co-branding affects the company in positive ways and negative ways. There are several reasons why some companies would want to pursue co-branding. The first one is that co-branding can attracts a wide range of consumers. Because once company adopts the co-branding, for consumers, it means that it provides more selection and more function of products. For example: Nike and Ipod, announced a partnership, which resulted...
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...Strategic Advantage Through Successful Co- Branding ABSTRACT Today’s market is suffering from a syndrome of sameness where all the products offered to the customers look very similar. This similarity is not only from the sameness in the physical brand element but also in the symbolic value proposition offered to the market. In this situation marketers are searching for alternative method of branding for creating sustainable competitive advantage. Co-branding as an alternative branding proposition is fast making grounds due to various factors. The opening of Indian economy with spate of entries by multinationals makes it evident that the Indian consumer is going to face lot of products with co branding options. This paper looks in to the psychological principles of co-branding strategy and highlights the potential benefits and dangers of co-branding strategy as a brand building alternative in Indian Market. Key Words: Co-Branding, Classical conditioning, Conditioned stimulus, branding strategy, brand association, ingredient co-branding, joint venture co-branding, multiple sponsor co-branding. Introduction There are various strategic options available to a marketer for building a strong brand in the market place. Brand image building is a long term process and three key issues need attention to make a brand distinct from other products or brands in the same product categories. It is difficult to develop a long term one way strategy for a brand and make it...
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...Personal Branding: Personal branding and corporate branding are visual ways to represent a person, place or thing. Whether that representation is successful or not is the ultimate goal. While they both have their benefits and difficulties, there is a controversy about which one is more important. Creating a personal brand is better than a corporate brand because of the image, resources, and marketplace. First, the person in the spotlight and the face of the company will be the reason people will want to pursue that company. The spokesperson will influence an audience through his or her personal brand, in a positive way. That person’s personal brand includes his or her great appearance, extensive knowledge of the product, and likable personality. The audience will take that personal brand with them, and then the audience brings it to the market. In return, the market will come back to the person or company they work for and will want to buy their product. The image gets the company started while the quality and usefulness of the products keep it up and running. Personal branding will help people remember the company the spokesperson is associated with, while corporate branding will have to rely on advertisements to reach the market in hope it is not overlooked. They are asking advertisements to speak for them while a person can do a much better job and give the audience more information. The advantages of pursuing a personal brand as opposed to a corporate brand involves;...
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...Classic Knitwear and Guardian Case Analysis Problem Classic Knitwear is a publicly traded company, which operates in the unbranded market segment. It is a manufacturer and distributor of non-fashion casual knitwear. The main business comes in from Wholesalers and Retail Channels. Recently, the company has been able to take advantage of low production costs through their state-of-the-art offshore production facility, established in the Dominican Republic. Due to Classic Knitwear’s moderate cost advantage over other US producers, rival companies such as JamesBrands and FlowerKnit had noticed Classic Knitwear’s model. It would only be a matter of time until these rivals reached similar or better manufacturing efficiencies. Classic Knitwear’s primary short-term objective is reaching and sustaining a gross margin of 20% in 2006. The low gross margin is due to Classic Knitwear’s poor brand recognition, the company needs to focus on innovating their products and raising recognition. To reach this objective and maintain a consistent stock price, Classic Knitwear knows that it needs to communicate compelling plans for margin growth. Through market research, the company found that a licensing agreement with the chemical firm Guardian, a manufacturer of odorless insect repellents, would benefit the reputation and financial stability of the company. In this case, I will calculate the break-even point in order to determine the best solution for Classic Knitwear. Solution Executives...
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...Co-branding involves the presentation of multiple brands and products to the public under a single marketing strategy. For instance, a single advertisement may show a person buying a certain brand of shoes and then also using a specific brand of credit card to do so. Likewise, a single brand may be used on separate products, such as athletic shoes and athletic equipment. Both practices have definite advantages and disadvantages. Ads by Google 4imprint Promotional Item 1000s of New Products. Huge Sale. Free Samples! Order Online or Call. www.4imprint.com Reinforcement One way to create a stronger brand is through the use of reinforcement. The more often a consumer sees a particular brand the more often he has the opportunity to form particular associations related to it. A brand is meant to communicate meaning and identity; by co-branding multiple products a company can create a deeper impression on the public. A wider range of products can do more to reinforce a particular brand image than just one product. Signaling Co-branding is a way of signaling various forms of information to consumers. From association with another product, a consumer may be able to infer a similar level of quality. The mystique or glamor that one product has gained for itself in the market can be extended to others through the use of a brand. If a single product is associated with multiple brands, that signals the two companies have invested their good names in its success. Related Reading: Single...
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...usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. Label is a pictorial, descriptive, or informative matter (such as a brand, mark, or tag), attached, embossed, impressed, marked, printed, or stenciled on (or otherwise forming a part of) a product and/or its container. • 5 Major Branding Strategies Brand Positioning Brand positioning is defined as the conceptual place you want to own in the target consumer’s mind — the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximize customer relevancy and competitive distinctiveness, in maximizing brand value. Brand Name Selections a systematic process for the development of a brand name that will increase a product's chances of success; the process usually begins with a review of the product's benefits, target market and planned marketing strategies, and will include such considerations as its likelihood to infringe on existing brand names, the ease with which it can be translated into foreign languages, and the degree to which it can be legally protected. Brand Sponsorship Manufacturer’s brands Private brands (store brands) Licensed brands Co-branding Brand Development Line Extension: introduction of additional items in a given product category...
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...Journal of Marketing and Management, 3 (1), 60-77, May 2012 60 Perceived Impact of Ingredient Branding on Host Brand Equity Prof. Kavita Tiwari, Dr. Rajendra Singh AICAR B-School, Navi Mumbai, India kavitat786@yahoo.com, prajsingh71@rediffmail.com Abstract The aim of the study is to discuss and estimate the perceived impact of ingredient branding on host brand in terms of brand equity. For the purpose of our study, we will measure the impact in terms of association, neutral and disassociation of ingredient brand with host brand. In this study many theories and models is studied to identify the potential factors of ingredient branding. The research methodology adopted for the analysis in our study is to some extent a replica of previous studies conducted within ingredient branding. We conducted a survey based on questionnaire method. For which a close ended structured questionnaire on 5- point Likert scale basis is being designed .The survey was conducted among 212 respondents consisting of customers in Indore city. While doing this research we have gained insights on how several aspects of our study could have been conducted differently. We recommend that a similar study should be conducted again, this time with well known host brands and ingredient brands that focus on utilitarian needs from a consumer perspective. A more representing respondent group would also increase the arguments for generalization among a wider population. By using SPSS we can conclude...
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...minimum purchase effort • Intensive/widespread distribution • Mass promotion by producer Shopping Products • Buy less frequently, planned, carefully compare alternatives • Selective distribution • Promotion by producer & retailers Specialty Products • Special purchase effort, but little comparison of brands • Unique characteristics or brand identification • Exclusive distribution • Carefully targeted promotions by producer & retailer • E.g., Lamborghini, Rolex, Prada Unsought Products • Innovations (little awareness) & products consumers don’t want to think about (no initial desire) • Require much promotion (usually personal selling) • E.g., life insurance, blood donation Individual Product and Service Decisions 1. Product attributes 2. Branding 3. Packaging 4. Labeling 5. Product support services 1. Product and Services Attributes Product quality •...
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...Importance of brand equity demands need for more practical experience and comparative research to judge and validate the usefulness of brand evaluation methods (Farquhar 1990). The recent merger and acquisition trend has also increased the importance of measuring brand equity (Tauber 1988). The role of brands is now far beyond product differentiation or competing for market share. They are accumulated annuities which the firm can acquire from its balance sheet (Tauber 1998). Firms could have a strong competitive edge over competitors if they could create brand equity ‘through building awareness, image, and linking associations’ (Keller 1998). A stronger brand would always have a better understanding of needs, wants, and preferences of consumers than the brands that are not competitive. Thus stronger brands would help in creating effective marketing programs that could go beyond consumer expectations. (Keller 1998). Brand equity since last one decade has remained popular for attracting new market segments (Pitta & Katsanis, 1995). This phenomenon of brand equity has coincided with the newly emerged but equally popular phenomenon of brand extension (Ambler & Styles 1997). Research shows a two way relationship between brand equity and extension. A brand's equity could influence the success of extensions, and extensions could positively influence brand's equity. The result is that highly valued brand extensions are more successful. Consumers tend to choose those brands that have...
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...Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organizations use this strategy to increase and leverage brand equity of their established brands for maximizing returns on their investments in these brands. Marketers have long recognised that strong brand names that deliver higher sales and profits (i.e. those that have brand equity) have the potential to work their magic on other products categorises. In recent past, the role of brand extension as a strategic tool for introduction of new products has gained significant mileage among product planners. The main reason behind this recent trend has been the increasing risk associated with the failure of new product introduction and exponential increments in cost of building and establishing new brands. In a highly competitive market, where each player is fighting for fractions of market share and access to customer mind and heart, makes launch of a new product a high risk decision. Besides the risk of failure for a completely new product due to increasing competition, the other factor that concerns these product planners is escalating cost associated with building a new brand. These reasons have made brand extension as preferred option among product planners. Applying this strategy provides easier access to already existing loyal customer base and distribution network of brand and cost less to marketer...
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...DAYANAND SAGAR BUSINESS SCHOOL BANGALORE ASSIGNMENT OF PRODUCT & BRAND MANAGEMENT ON SUCCESSFUL AND UNSUCCESSFUL BRAND EXTENSIONS SUBMITTED TO- Mr. Sai Ganesh SUBMITTED BY –Khushbu Roy DSBSPGDM09022 BRAND EXTENSION “Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category.” Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business. ...
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...It starts with an idea s t a g e s o f innovation Best Practices in Brand Extension: Effective Application of Brand Recognition BRAND EQUITY CAN BE DIVIDED INTO THREE COMPONENTS: EXPERTISE, EMOTIONAL ATTACHMENTS AND PRODUCT ATTRIBUTES Brand extensions are an effective and popular method of gaining a competitive advantage when entering a new product area. Consumers are faced with an increasingly complex and confusing marketplace. The ability of a brand to act as a mental shortcut for consumers, thereby simplifying the decision-making process, makes it one of, it not the, most important asset for a company. The ability of a brand to influence consumer behavior, and its subsequent value to companies, will increase as consumers face a growing amount of information in the marketplace. By placing a well-known brand on a new product, a company can imbue that product with all the positive associations of that brand, thereby giving it a competitive advantage. With some estimates of the failure rate for new products at 90%, the added value of being associated with a trusted brand can be critical to a new product’s survival. Given the increasing value of established brands and the difficulty in launching new products, the popularity of brand extensions is understandable. However, the brand extension process must be carefully planned in order to insure the value of the brand is successfully transferred to the extension without jeopardizing the brand’s equity. To do so, a company...
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... Managing Brand Extensions Brand Mix ▪ Definitions ▪ Breadth and Depth of Brand Mix Brand Extensions ▪ How to make brand extensions? ▪ Advantages and disadvantages ▪ Examples 1.2 A company may have more than one brands in different product categories It is critical that the firm can help consumers understand its products and services and organize them in their minds. The brand-product matrix help to characterize and formulate branding strategies by defining various relationships among brands and products. 1.3 The brand-product matrix A graphical representation of all the brands and products sold by the firm Brands rows Products columns 1 A Brands B Products 2 3 4 C 1.4 P&G Matrix Shampoo Cosmetics Toothpaste Toothbrush Floss Brands 1.5 Definitions Brand line ▪ All products sold under a particular brand 1.6 P&G Matrix Brand Line 1.7 Definitions Brand line Brand portfolio ▪ The set of all brands in a particular category 1.8 P&G Matrix Brand Portfolio 1.9 Definitions Brand line Brand portfolio Brand mix ▪ The set of all brands that a particular seller/company makes available to buyers 1.10 P&G Matrix Brand Mix 1.11 Breadth of brand mix How many different products should we carry? (Whether we should go into a product category?) ▪ Aggregate market factors ▪ ▪ ▪ ▪ ▪ Market size Market growth...
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...Branding Strategy: Building Strong Brands Some analysts see brands as the enduring asset of a company, outlasting the company’s products and facilities. Brands are powerful assets that must be carefully developed and managed. Here are some key strategies for building and managing brands. Brand Equity: Brand equity is the differential effect that knowing the brand name has on customer response to the product and its marketing. It’s a measure of the brand’s ability to capture consumer preference and loyalty. A brand has positive brand equity when consumers react more favorably to it than to a generic or unbranded version of the same product. It has negative brand equity if consumers react less favorably than to an unbranded version. High brand equity provides a company with many competitive advantages. A powerful brand enjoys a high level of consumer brand awareness and loyalty. Because the brand name carries high credibility, the company can more easily launch line and brand extensions. A powerful brand offers the company some defense against fierce price competition. Building Strong Brands: Branding poses challenging decisions to the marketer. The major brand strategy decisions involve brand positioning, brand name selection, brand sponsorship, and brand development. • Brand Positioning: Marketers need to position their brands clearly in target customers’ minds. Positioning refers to the act of designing the company’s offering and image in such...
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