11.5.how can companies combine products to create strong co brands or ingredient brands by-vishnupriya aryabhumi

Setting

Product Strategy

How can companies combine products to create strong co-brands or ingredient brands?

What is Co-Branding??

• Also called as Dual branding/ Brand bundling

Lets look at few examples

Advantages of Co-Branding??

• Increased potential for market sales• Low cost of introduction• Learn about the approach of other

companies

Disadvantages of Co-Branding??

• Customer expect high quality• Dissatisfaction will have higher

negative repercussion• Brand alignment with another brand

in consumer’s mind

So when to go for Co-Branding?

When • Brand equity exists• The products are Complementary • Values, capabilities, constraints and

goals of the companies align

Price considerations in Co-Branding

• Sum is less than parts• Avoid conflicting promotions• Be wise in offering large rebates on

individual products• Consider the experience and

knowledge of the customer

Caution: Avoid price war in Single product firm Vs Multi product firm

Ingredient branding

• Ingredient branding is a special case of cobranding

• It creates brand equity for materials, components or parts that are necessarily contained within one another

Example for ingredient branding

PC manufactures pay significant premium to intel instead of buying an equivalent component elsewhere

Thankyou!

ByVishnupriya AryabhumiIITMadras

CreditsBackground

IDRA; www.preventconnect.org

4 www.brighthub.comwww.quora.com

10 www.intel.in

Based on Chapter 12 of Marketing Management by Kotler Keller Koshy Jha 14th edition

Disclaimer"Created by Vishnupriya Aryabhumi, IITMadras, during an internship by

Prof. Sameer Mathur, IIMLucknow.www.IIMInternship.com"