Co-Branding as a Tool for Customer Accquisition

Topics: Brand, Credit card, Co-branding Pages: 12 (3420 words) Published: March 21, 2011
CO-BRANDING OF CREDIT CARDS: AS A TOOL FOR CUSTOMER ACCQUISITION

Contents
CO BRANDING: .......................................................................................................................................... 3 INTRODUCTION: ....................................................................................................................................... 3 TYPES OF CO BRANDING: ...................................................................................................................... 4 Reach & Awareness Co-branding ............................................................................................................. 4 Value Endorsement Co-branding .............................................................................................................. 4 Ingredient Co-branding ............................................................................................................................. 5 Complementary Competence Co-branding ............................................................................................... 5 The Power of Co-Branding ........................................................................................................................... 5 Benefits of Co Branding ............................................................................................................................... 7 Problems with Co-branding .......................................................................................................................... 9 Adding Value To The Customers ............................................................................................................... 10 EXAMPLES: .............................................................................................................................................. 11 American Express, Kingfisher launch co-brand credit card ....................................................................... 11 ICICI AND KINGFISHER AIRLINES MASRTER CARD: ................................................................. 12 CASE: ..................................................................................................................................................... 13 Delhi Metro and Citibank Launch Co-Branded Transit Credit Card ...................................................... 13 Conclusion: .................................................................................................................................................. 14

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CO BRANDING:

"Co-branding is a form of co-operation, in which all the participants' brand names are retained."

And Kotler defines co-branding as, "two or more well-known brands combined in an offer" and each brand sponsors expect that the other brand name will strengthen the brand preference or purchase intention and hope to reach a new audience.

INTRODUCTION:

Today's consumers have many more choices than ever before. They look for products and services that simplify their lives and express their individuality. A co-brand partnership is designed to strengthen the bond with your customers. It can increase loyalty, attract promising new customers, lower your acquisition costs and help keep your company top-of-mind. All can add profits to your bottom line.

Most companies have explored co-branding at one time or another. But few have realized its full potential. While there are many forms of co-branding; before a company can decide which option makes the most sense for its situation, it must fully explore four main types of cobranding.

Each is differentiated by its level of customer value creation, by its expected duration, and perhaps most important, by the risks it poses to the company. These risks include the loss of investment, the diminution of brand equity and the value lost by failing to focus on a more rewarding strategy.

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TYPES OF CO BRANDING:

Reach & Awareness Co-branding This is the...
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