Strategy of co branding, advantages and disadventages

2. Extended
Core
Existing New
ProductComplementarity
Target Group / Market

3. 1. Reaching In

4. 2. Reaching Out

5. 3. Reaching Up

6. 4. Reaching Beyond

9. • Be an advantage for both parties and not use the image of one on order to
boost the other one. It should bring an added value for both brands in the
consumer view.
• - It is necessary that both partners are on the same quality level. If a
brand is perceptible with a lesser quality, both brands can be affected by a
negative reaction of the consumer. However we must underline that the
risk for brands with strong reputation is higher.
• - It should be relevant to the consumer view. In another word, it
should be innovative and bring an advantage to the end user. For instance:
the sports wear of Sergio Tacchini who collaborated with 3M for the
production of an athletic suit water resistant and antitask.
• - It could be the association of unexpected brands, such as Opel and
Durex, in order to differentiate one of the brands or both fom their
competitors which is the case for Opel in the cars market.

10. • Dilution of brand image: Beyond an operation of co-branding, a
brand is linked not only with another brand but it also combines
with its values and image. The consumer can be flustered by the
leading association which introduce different characteristics, and
as a result the brand image can be changed and lose its
signification. To restrict the image dilution of the brand, it is
primordial that the co-branded brands show consistent values.
• Cannibalization of brand partners: A co-branding operation can
ask the question of the cohesion of a range of products: when
the co-branded product is positioned on a market close to co-
branded brand products. This co-branded product can create
confusion in the consumer mind.
• Brand disparition : Sometimes, the Co-branding
can consist in programming and orchestrating the
disparition of a local renowned brand , to the
advantage for another worldwide brand. At
first, the worldwide brand can appear in a very
discreet way but « petit à petit » it evicts it
definitively. In this case, a successful co-branding
is the one that does it gently. The objective is to
keep the faithful customer.