CO-BRANDING Nike and Apple brought music and exercise together when they developed the Nike + iPod

Sports Kit a wireless system that allows users listening to music as well as to see how !ar and !ast they have run and the amount o! calories they have burnt" #o achieve this Apple computers $nc" provided a tiny i%Pod and there was a wireless system that received data !rom a sensor in the insole o! the shoes" All in all it looks a brilliant idea and a win%win situation !or both companies" #his is a classic example o! co%branding a concept o! bringing two or more brands together under one umbrella !or a mutual purpose" &o%branding sometimes known as cross%plat!orm marketing is a strategic partnership between pro!essionals or organi'ations that recogni'e the value o! leveraging each other(s reputation to ampli!y awareness about a product service event or cause" #ypical co branding includes combining the strongest elements o! a product with the best complementary brands to o!!er new goods and services" Also a common practice is the utili'ation o! two or more brands to name a new product" Benefits of co branding: )" *each more o! the consumers who are currently customers o! something else" +" Sharing o! marketing costs especially in ma,or campaigns that can cost in excess o! -S.)// million" 0" 1ore bene!its to present customers enhance brand loyalty and widen customer base" 2" #alent expertise and creativity can be shared on the basis o! the principle that success o! one will bring success o! the other" 3" &o%branding can be an e!!ective strategy to survive down times and even grow" Types of co branding: Ingredient co-branding: $t implies using a renowned brand as an element in the production o! another renowned brand. #he ingredient should either be a ma,or brand or should be protected by a patent" $ngredient co%branding leads to better 4uality products superior promotions more access to distribution channel and greater pro!its" #he seller o! ingredient brand en,oys long%term customer relations" #he brand manu!acture can bene!it by having a competitive advantage and the retailer can bene!it by en,oying a promotional help !rom ingredient brand" Eg: Intel started t e !Intel inside" ca#paign $%&&%' in association (it co#p)ter #an)fact)rers li*e Dell+ ,- and .eno/o ( o (ere licensed to )se Intel0s logo. T ey

red)ced t eir o(n ad/ertising b)t still t eir s are rose to &12 by %&&3 in t e #icroprocessor #ar*et.

Co#posite Co-Branding: 5ere two or more brands come together to create a completely new product using the capabilities o! both and that could not be possible individually" #his co%branding is success!ul when the brands coming together really complement each other in the new o!!ering" Eg: Citiban* tied )p (it 4T5 to la)nc a co-branded debit card. It ga/e t e prospecti/e card #e#bers an opport)nity to fly free to 4alaysia or dine (it 4T5 56s. T e card also offered c)sto#ers benefits at certain o)tlets called 4T5 Citiban* Cl)b.

Basic considerations for co branding: $t is important to evaluate any co%branding opportunity be!ore committing it as certain things have to be in place !or success to be achieved" )" -nless customers are willing to receive the real bene!its !rom the exercise" +" #he target audiences o! the partners should have similar types o! pro!ile demographic and psychographic" 0" #he partners should have similar brand values otherwise there will be signi!icant strategy problems and working together may well be problematic" Disad/antages of co-branding: )" &o%branding may !ail when the two products have di!!erent market and are entirely di!!erent" +" 6orging a misalliance with another brand which cannot keep up with consumer(s demands may tend to drag down the other brand(s reputation" 0" Adverse experience o! customers o! one component brand may a!!ect the co%brand(s integrity and reputation"

&o%branding is a hot pancake and companies are eager to give it a try7 some will hit the bull(s eye i! they work out a smart and consumer%appealing combination" All it needs is clever business strategy and you have a winner at hand"