how can companies combine products to create strong co-brands and ingredient brands

Setting Product Strategy

How can companies combine produc t s to c rea te s t rong co -brands or ingred ien t

b rands?

Presentation byDivyasree P K

IIT Madras

Co-Branding

N. Process by which di f f erent products are combined together in to a jo in t product or marketed together in a jo in t fash ion

TypesSame company co-brandingJoint venture co-brandingRetai l co-brandingRetai l co-branding

Same company co-branding

Two or more products from the same company are promoted togethercompany are promoted together

Same company co-branding

Aquaguard Eurocleanpromoted together by Eureka Forbes

Same company co-branding

Promoted by Oriental Cuisines Private Limited

Joint venture co-branding

Two or more products from different companies are promoted togethercompanies are promoted together

2 in 1 transit credit cards

Citi bank credit card

Joint venture co-branding

DMRC

Citi bank credit cardMetro transit card

Additionalcustomers

Increased reach

Retail co-branding

Two retail establishments use same location to optimize space and profitslocation to optimize space and profits

Pizza Hut & KFC

co-branding?

Easy positioning

Visibility due to multiple brands&

Existing market

New channelsPLUS

New channels

INCREASED SALES

Reduced cost of product introduction

Speeds up the adoption process!

MOST importantly,

Provides opportunity to understand how other brands approach the customerother brands approach the customer

co-branding?

BRAND EQUITYEQUITY

Brand awareness

PLUS

Brand image

1Ensure separate brand equity exists

2Ensure a logical fit between the brands

CO-BRANDS....must be

complementary and unique..

..to ensure favorable perception by customers

3Adopt due diligence before entering co-branding ventures

FIT ofValuesCapabilityGoals essential

INGREDIENTBrandingBranding

N. Process which creates brand equi ty for products that are contained wi th in o ther branded products

Carl Zeiss lens in Sony digital camera

Success story of Intel

Ingredient brand became the preliminary cutoff for the selection of host product!!

Successful Ingredient Branding

Requirements

1Ingredient is integral to the success of host

2Ingredient offers tangible quality differentiation

3Host must display a visible marker of the ingredient

4Concerted efforts to make the customer understand the value of the ingredient