95. literature review on challenges and opportunities of cobranding
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Literature review on challenges and opportunities of
Co-branding in international marketing
Table of Content
1 Introduction .......................................................................................................................... 3
2 Brands and Brand Equity ..................................................................................................... 4
3 Co-branding ......................................................................................................................... 7
4 Impacts of Co-branding ....................................................................................................... 8
4.1 Direct effects ................................................................................................................. 8
4.2 Spill-over effects ......................................................................................................... 13
5 Possible strategies for co-branding in international marketing .......................................... 17
6 Conclusion ......................................................................................................................... 22
References ................................................................................................................................ 25
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1 Introduction
There is going to be more and more competitiveness in marketplaces and due to this
schematic opposition between corporations develops as a tool for schematic companions to
achieve advantages. In circumstances distinguished by a severe decrease of the economy, in
which the chief precedence is to minimize expenses in order to achieve bigger effectiveness of
operation, connecting so as to make the competition, which is a rising basic marketing plan to
confront more effectively the obstacle of the implementation of a brand name with worldwide
features. The brand name is an insubstantial property which has played very important part in
schematic provisions, for public as well as private corporations (Abimbola, 2001). A prominent
brand picture provides the corporation a competitive advantage, as it lets the clients recognize
much more advantage in association with the features and standard of the product or service. The
impact of the brand is rooted on the presence of trust and a series of hopes. Co-branding is rooted
on connection between two acknowledged brands for the development of a product with high
added value. In such method, co-branding lets the transference of fame and being credible
between companion brands, letting the marketing procedure more effective. This study aims to
provide literature review on challenges and opportunities generated by co-branding in
international marketing. On this basic of understanding provided the recommendation on
marketing strategy to take competitive advantages from co-branding in international market.
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Table 1 Success factor for direct effect of co-branding
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Table 2 Success factor for spill-over effect of co-branding
Figure 1 Co-branding strategy
…………………………………………………………………………………………………..
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2 Conclusion
Taking into consideration the recent trend of co-branding internationally as marketing strategy
to gain competitive advantages, this study has reviewed the opportunities as well as challenges in
co-branding strategic management in international marketing. Despite its challenges, co branding
has become implemented as marketing strategies in order to take competitive advantages in the
international market. Giving the right situation, co-branding is considered as an effective mean
of making the products outstanding within the context of economic globalizations and
internalisations. However, to develop an effective and efficient co-branding as a marketing
strategy, the following critical factors are recommended to be considered:
Transition cost should be taken into consideration for the two firms embarked to make
co-branding success. For the JV, both firms are responsible for profit and liability
generated; thus, transition cost is shared and symmetric. However, for the merge firm,
one is required to take responsibilities for the other; thus, the transition cost would
largely affect the co-branding success.
Cultural difference should be also taken into consideration as an essential factor in the
plan of co-branding. To try consolidating firms from different environments might
bring various uncertainties in many aspects of business operations; thus, it contributes
largely on the directions as well as outcomes of co-branding strategy.
Consumer acceptance should be considered as one of major drivers of success in co-
branding. Since it is relatively difficult in finding a leverage point and common
grounds for both firms in purpose of satisfying the radical differences in consumer
groups between two different environments, it is advised firms to identify andmake
main focus on consumer demands and needs.
Core positioning is one of important factor since each brand has its separated core
competences, core positioning is essential of the co-branding between two brands. It is
advised firms to have clear and unique identification and positions of their core
competences in purpose of making jointed brand integrating with the original ones.
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Capital restructuring takes an important place of those factors affecting the success of
co-branding strategy. Since each firm is responsible for one or several financial
aspects, adequate capital structures for both firms is essential before starting co-
branding plan.
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