First, reviews the main theories that attempt to explain the evolution and development of franchising Next, the phenomenon of co-branding in a franchising environment is introduced Finally, using the unique case of McDonald’s Australia’s conception and introduction of McCafe as an example of co-branding, the methodology and findings of an in-depth case study are revealed
Retail co-branding is dominated by businesses that provide convenience benefits to consumers. 32 Hence, we observe examples of fast food franchises teaming up with service stations (fuel retail) and grocery stores, as demonstrated by McDonald ’ s and Hungry Jacks with Shell and BP, and Subway with 7-Eleven. What motivational factors instigated co-branding arrangements within McDonald’s / McCafe? Why it is co-branding not brand extension?
1, this movement of the McDonald’s brand from company as brand to a master brand position (parenting its own brand equity and that of McCafe) in a brand hierarchy scheme explains the shift from a single brand to that of a brand portfolio. 2, Other examples of this retail co-branded environment are Allied Domecq ’ s use of Dunkin ’ Donuts, Togo ’ s and Baskin Robbins in the United States and Canada where the three brands were combined in one retail offering but operating discretely under the one roof. One franchisee was encouraged to own the entire outlet containing all three brands. Another more notable example is that of Yum Restaurants International combining the three brands of Pizza Hut, Taco Bell and KFC in a similar fashion. Ultimately, these examples differ slightly from McDonald ’ s in that the master brands of Yum Restaurants International and Allied Domecq do not facilitate the same brand meaning at the consumer exchange level as the McDonald s brand. 3, McDonald’s / McCafe can therefore be seen as a collaborative venture constructed to further the interests of the two brands (one master and one sub-brand) in a planned, strategic format. It has...
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