► To make financial benefits
► Respond to the expressed and latent needs of customers
► To strengthen its competitive position
► Introduce a new product with a strong image
► Creating a new customer perceived value
► To gain operational benefits
Benefits of Co-branding
► Increased sales revenue.
► Exploring new markets with minimum expenditure.
► Appropriate approach when company seeks quicker response. ► Access to new source of financing.
► Technological collaboration between two companies give better results than what could be achieved by single company's efforts. ► Royalty income.
► Sharing of risk.
► Companies can fetch higher price for value added by additional brands associated with it. ► Improved product image and credibility with another brand association. ► Increased customer confidence on product.
► Increased coverage and exposure from joint advertising.
► Prospects to develop working relationships leading to future joint undertakings Problems with Co-branding
► Proper understanding between co-brand partners is must. Greed to fetch too much in short time may spoil the relations and even result in failure. ► Once a co-brand take position in market, it becomes difficult to dismantle co-brand and even more difficult to reestablish the brand alone. ► Companies having different visions and...