Brand Alliances New Model of Networking

Brand Brand Brand Brand strategystrategystrategystrategy

New New New New modelsmodelsmodelsmodels of of of of networkingnetworkingnetworkingnetworkingEdited by P S Gopalakrishnan

Charlotte Puisais

Juin 2009 Specialized Master Marketing, Management&Communication

Tutor : Christophe Benaroya

I. Analysis of the book

II. Proposition of a model

III. Application to a concrete case

Charlotte Puisais

Specialized Master Marketing, Management&Communication


I. I. I. I. AnalysisAnalysisAnalysisAnalysis of the bookof the bookof the bookof the book

� An academic review on what are brand alliances in contemporary business

� Writing by several marketing professors and experts

� Division in 2 parts

“Brand Alliances are the outcome of the understanding among firms to join hands for

promoting their brands together or for bringing out a totally new product into the marketplace” *

* PS Gopalakrishnan, Brand alliances, New model of networking, p. I

Charlotte Puisais



P S Gopalakrishnan, Julio Cerviño, José Maria Cubillo-Pinilla, Ignacio Cruz-Roche, David James, Paul F Nunes, Stephen F Dull, Patrick D Lynch, Mriam Claire Beezy, Lisanne Bouten, Erik Jan Hultink, Cees de Bont, Nicole van Leeuwen, Swati Soni, Makarand Upadhyaya, Serge Dive, Marie-Hélène Abbo, P. Venkatesh, D. Gavatri,

Sethuraman P R, Stanley V Thomas

→ 1111stststst section: section: section: section: theorytheorytheorytheory chapters 1 to 9

- Overview based on literature, studies and brief concreteexamples

- Very concepts of what are brand alliances

→ 2222ndndndnd section: section: section: section: experiencesexperiencesexperiencesexperiences and applications and applications and applications and applications chapters 10 to 14

Sony’s Ericsson ; Yum! Brands ; ING Group&Vysia Bank

Charlotte Puisais



� No single definitions on what is a brand alliance or co-branding in marketing literature

� Several types of brand alliances:

Basic brand alliance

or « co-master brands »Co-branding

Brand licences

Charlotte Puisais



AimsAimsAimsAims of a brand alliance: of a brand alliance: of a brand alliance: of a brand alliance:

- attract new customers in quick and cost-effective way

- capture new market through resources’ joining

- having a greater impact on consumer mind

- way of rejuvenating a brand.

Charlotte Puisais



AdvantageAdvantageAdvantageAdvantage of a brand alliance: of a brand alliance: of a brand alliance: of a brand alliance:

differenciation complement

innovation credibility

quality

exclusivityreliability

rejuvenation

Charlotte Puisais



KeysKeysKeysKeys to to to to succeedsucceedsucceedsucceed: : : :

Synergy between brands

Know the specificities of the other brand

How the product can be integrated in our portfolio ?

=> Consider the legal aspects

Long term strategy

Charlotte Puisais



DisadvantagesDisadvantagesDisadvantagesDisadvantages of a brand alliance: of a brand alliance: of a brand alliance: of a brand alliance:

� dilution of the brand

� negative impact of both brands

� deficience of one brand

� legal aspects

Charlotte Puisais



II. Proposition of a modelII. Proposition of a modelII. Proposition of a modelII. Proposition of a model

Charlotte Puisais



� conception of a grid

� application of this grid to concrete examples given into the 2nd section of the book , in order to validate the model

Charlotte Puisais



Co-Master brands / basic brand alliances*

Co-branding** Brand licenses

Brand 1

Brand 2

…

Product – product alliance ?

Brand – brand alliance ?

Brand 1

Brand 2

…

Brand 1

Brand 2

…

joint promotion ?

research and development ventures ?

technology transfer ?

direct investment ?

creation of a new product ?

product integration ?

commune promotion ?

long term

short term

TYPES OF BRAND ALLIANCES

* = sponsorship or endorsements or special promotion or advertising

Agreement

Attributes of the brand

Strenghts

Form of brand alliances

DisadvantagesValues developed by the alliance

Duration and purpose

Physical production

** = ingredient branding or product integration or reach and awareness co-branding or value-endorsement co-branding or complementary competence co-branding or service warranty co-branding or unorthodox co-branding

*** = Who launch the alliance ? When ? Context of the launching ?

Launching***

Brand

AimsLegal agreementsAdvantages

Specifics considerations before the alliance

Charlotte Puisais



III. Application to a III. Application to a III. Application to a III. Application to a concreteconcreteconcreteconcrete casecasecasecase

Brand alliance Brand alliance Brand alliance Brand alliance betweenbetweenbetweenbetween

a brand and an a brand and an a brand and an a brand and an artistartistartistartist

Charlotte Puisais



WhatWhatWhatWhat isisisis a brand ?a brand ?a brand ?a brand ?

« A brand is a name, a term, a sign, a symbol, a drawing, a design or all types of combinationwhich allows to identify a product and to differentiate it versus its competitors »

Philip KOTLER

Charlotte Puisais



Basic brand alliances

LVMH & cultural events

Charlotte Puisais



Co-branding

++++

Takashi Murakami & Louis Vuitton

Charlotte Puisais



Licences

++++

Ben Vautier & Quo Vadis

Charlotte Puisais



Brand Alliances New Model of Networking

Business

specialized

brand alliance

managementamp

brand alliances

product integration

brand

communication

brands