Chapter 11: Setting product strategy

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

By: Kartik SinglaIndian Institute of Technology(BHU), Varanasi

Co-Branding: Two or more well known brands are combined into a joint product or marketed together.

Company co-branding

Same company promoting two of its products together.

Joint venture co-branding

Two different companies form a strategic alliance to present a product together in

the market.

Retail co-branding

Two retail establishments which use the same location to optimize profits.

“Co-branding can induce greater sales and reduce

the cost of product introduction”

Movie makers generally use co-branding to generate revenue before any movie is released.

The lead actors of the movie are well known brands.

The customers expectations from

co-branding is really high , so unsatisfactory performance

can damage brand image of both the

companies.

Ingredient branding

A special case of co-branding where a company creates brand equity for

components that are contained within other branded

products.

“Intel Inside” forced the major PC manufacturers to buy their chips from Intel at a premium price.”

Ingredient branding

Should make the customers believe that ingredient matters to the performance

and success of end product.

Ingredient branding

Must have a distinctive logo which must signal that the host product contains the ingredient.