What Lead to Failure the Co-Branding Alliances - Essay Example

What Lead to Failure the Co-Branding Alliances Introduction Business organizations are presently operating in highly turbulent and competitive market environment. The advent of free trade has resulted in globalization where business organizations are cutting across political and geographical boundaries to reach out to newer markets across the globe. The emergence of developing markets like China and India has created huge opportunities for large multinational firms to expand beyond the traditional consumer markets of Europe and North America. Branding and brand image have become primary concerns for strategists and marketers across the globe. This is primarily because consumers normally use brands to distinguish between the product and service offering of different firms. Hence the concept of branding and brand image has been given due importance by marketers who are spending billions of dollars every year to maintain a favorable positioning of their brands in the consumer markets. Any effect on the brand image could lead to disastrous consequences for a firm as the mindset of the consumer depends on the brand image of a product. Brands like Coke and Pepsi are being valued at billions just because of their favorable brand image. This lure for capturing market has triggered a wave of competition among the business organizations. In order to cater to the growing competition and to maintain successful co-existence firms traditionally engaged in illegal collusion like cartel formation to maintain successful coexistence. In the modern world co-branding has evolved as a major strategic alliance among organizations to cater to the growing needs of competition. Co-branding is defined as “a practice of locating two or more brands at one single operation” (Prideaux, Moscardo & Laws, p.73). It has been a completely proven fact that co-branding enhances the value proposition of firms. Co-branding strategies include activities like affinity based programs, advertising, cause based marketing activities, joint branding and combined sales promotions. Firms normally use a combination of the above stated activities in order to gain strategic advantages from co-branding. Product bundling is another feature that is prevalent in co branding associations among business organizations. Firms engaged in co-branding also engage in co-operative advertising like celebrity endorsement for the bundled products etc. This form of co-operation generates greater advantages for organizations as he combined expertise of organizations helps in generating better leverage for the organizations. It has also been observed that co-branding leads to better bargaining power of the manufacturers with the suppliers. This is very vital for firms as it helps in maintaining competitive advantage in the long run. However co-branding also has certain distinct disadvantages as firms may lose certain amount of control on the brand while sharing a brand with another organization. A famous example in this regard is that of Intel Corporation. The cost of co branding in the case of Intel exceeded the benefits of co-branding. Moreover if for certain reasons the partnership between the organizations breaks apart or fails for certain reasons then the negative effects become compounded for both the organizations (Bengtsson & Servais, p. 3-9). The present study would concentrate on the aspect of co-branding in multinational organizations. The choice of the topic assumes significance considering the fact that organizations are largely resorting to co-branding strategies so as to sustain the effects of competition and to ensure a sustainable and co-operative future for them in the highly turbulent business scenario prevailing in the present consumer markets. The study would include an analysis of the existing literature which would contain an in depth analysis of the different related aspects of co-branding. Books and articles of repute authors would be refereed for this purpose. Finally a primary study comprising of a questionnaire survey would be carried out to gain firsthand market information of the topic of study. Finally a set of plausible conclusions would be presented so as to serve as a guiding template for organizations which are engaged in co-branding. These set of conclusive statements would be derived from the findings of the primary and secondary study. Objectives The main objectives of the research study would be to analyze the aspect of co-branding and the related aspects. The main focus of the literature review would be to analyze the theoretical background of the concept of co-branding. This would include an analysis of the advantages and disadvantages of co-branding. The literature review would also analyze the different aspects of branding and the factors affecting the image of a brand and its importance in the minds of the consumer. The analysis would be aimed at generating a set of plausible solutions for organizations which are trying to adopt co-branding as a part of their business strategy. The following chapter would focus upon an analysis of the existing literature on the concept of co-branding which would be followed by a primary study comprised of a questionnaire survey whose maim would be to gain a firsthand market information about practical aspect of co-branding. Literature Review Introduction to Branding A brand is a mixture of attributes, which can be tangible or intangible and which creates value and influence. Value is interpreted as “the promise and delivery of an experience” (Brand Cameo, “Brand”). Using the name of a brand for a product or a service is a natural phenomenon and is being used from ancient times when brand names were used in a person’s personal belongings and property. Using a particular mark on a product to distinguish it from other products is an age old strategy. Today the basin function of branding still remains the same. A well-defined brand that is presented consistently, and shows authenticity, helps in gaining the trust of people in the marketplace. Trust is a critical component in the field of marketing. Brand plays the two most important functions. Firstly, it should considering the vision and mission of the business or the organization. This vision is then communicated to the consumers using appropriate symbols and words. Also the communication should also be kept consistent across the media and across time (Cost, “What makes people like brands?”). Brands reflect the culminated impression help by a person regarding the organization. A brand remains in the consumers’ mind and is considered to be synonymous to reputation. In short, an organization’s brand is actually what its customers think it is (Healey, p.10). The job of the brand manager is to ensure that what the customers are thinking is right. If the company’s product is better than that which is perceived by its customers, then branding can help in improving the notion. Brands also reinforce loyalty by the use of recognizable and consistent image in places where the customers are likely to meet them. Customers generally have the tendency to believe that a branded commodity has a greater worth than that of a generic commodity. This is the reason why companies invest large amounts of money and effort in building its brand image. That is why a DVD player produced by Sony costs four times as much as that produced by an unknown producer. It is true that Sony provides a lot more features and advantages and happens to be more reliable; however, it might not be four times better than the other company’s DVD product. The price difference is attributed to the company’s brand worth (Healey, p.10). The brand image helps in building the sales revenue for the company and consequently increases the company’s share prices. Branding generates the emergence of a number of challenger brands which tries to imitate the qualities and look of the original brand, and hence try to generate the same feeling in the minds of the customer as that towards the original one. However, to avoid this, companies must try to encourage its employees in bettering their performance in all stages of manufacturing and development of the product. Internal branding helps in the production of better quality products and this helps in the attainment of a competitive edge over its competitors (Healey, p.10). Brand Management Brand management is defined as the process in which the status and name of the product is created, promoted and preserved. This is primarily done to increase awareness about the brand, loyalty towards the brand and increase customer sales. The first step towards starting a strong brand is to begin with a product which is superior in quality and performance. This is the basin requirement of all strong brands. It would not be possible to create a strong brand for a product which offers services of inferior quality. High quality is said to be pre-requisite in building a strong brand. However, this is also true that just a superior quality is not enough to differentiate the product from other competitors. This is where the requirement of brand management comes into play. It requires careful of the branding strategies undertaken by competitor companies in the market (Verma, p.18). The next component in brand management is to identify the brands’ singular distinction, develop a specific definition of the brand or the message of the brand, and the finally position the brand in the right marketplace. Once the high quality product has been chosen, it is important to identify the distinction factor for the product which would be used for targeting the market. For example, if the product is the first, or the best, or the fastest or the most luxurious in the category. Choosing this point is most crucial because whatever branding strategy it would be used to reinforce this factor in the minds of the consumers. It is interesting to know that often a brand launched as the first of its kind in the market often emerges as the market leader and can enjoy the position for many years. “Federal Express was not the first package delivery company so they invented a new category-overnight package delivery” (Verma, p.18). In doing so, they have been able to retain as the leader in the overnight shipping. In case, somebody else is already the owner in the category, then a different word should be chosen. The next step would be to tap into the emotions of people. One of the key functions of the marketer would be to develop such accessible attributes in the brand. The brand should be able to enter into the market’s psyche and simultaneously evoke a positive and emotional response. A very strong brand is able to mould the reaction that arouses in people. Once the brand is able to develop an emotional attachment of the consumer with itself, they would consequently try to justify their decision to purchase which would be based on the product’s benefits and features (Verma, p.18). The image of the brand should then be projected at every point of contact with the market. Thus, the name, the logo, advertising and other marketing communications should communicate the USP of the brand and communicate the brand’s message effectively. Every aspect of the marketing strategy should ensure to convey the same message. This also includes the brand’s website, mails, sponsors and events. The branding effort must also penetrate the entire organization. The entire workforce of the organization, starting from the CEO to the sweeper must demonstrate the brand’s distinction factor (Verma, p.18). It is important to deliver the promise which the brand makes to the market. Whatever be the brand image or the positioning statement or the USP, the brand must deliver its promise made at any cost. It must be remembered that the brand is nothing but a “promise of value” which needs to be delivered to the market by all means (Verma, p.18). Lastly, the brand equity needs to be measured against competition and continued to be built and refined. Measuring the equity for the brand at regular intervals is the best way of identifying the position of the brand amongst its competitors. This could be done by using methods of market research, conducting market surveys, analyzing the premium price that the brand enjoys, studying the brand’s sustainability and conducting research on focus groups. Brand management is the continuous process of communication with the market and keeping the promises made it made (Verma, p.18). Brand Extension When a brand tries to diversify or leverage the present brand by entering into new categories of products, it is known as brand extension. The positive strengths and images of the existing or present brand are portrayed in order to create another success story Brand extension is increasingly being used by organizations as a strategy of product development. It is considered to be one of the means of attaining an integrated architecture for the brand. Using the same brand for the newly introduced product in the new product category increases the acceptance for the product and also the intension to purchase. The strategy must maintain efficiency in advertising and other promotional expenditures. Even then it is able to create new market segments. In this case the companies do not have to allocate the same expenses as the parent brand but the level of success attained can be as much as that of the parent brand. Sometimes, it can even be more than that. Strong reputation of the original brand would be able to reduce much of the risk involved in the introduction of the new brand. The risk can be reduced further by taking the advantage of the knowledge and experiences of the consumers of the brand already established. It requires fewer expenses with regards to the conducting market surveys and industry analysis (Bloomhead, p.2). It is true that brand extension involves very little risk, but it is not completely risk-free. A certain amount of risk exists because the associations of the original brand need to be transferred appropriately and attached to the product. In case the new brand is not properly associated with the parent brand, it may have negative effects on both the new and the parent brand. The financial figures and image of the original brand can be endangered because of the failure of the strategy implementation (Bloomhead, p.2). Brand extension can be done in the following ways. The first step involves examining the attributes presently associated with the brand. It would be followed by evaluating the possible opportunities of extending the brand. Then it would involve identifying the possible consequences involved with the extension of the brand. Finally, the opportunity of extending the brand would be selected (Sexton, p.157). The first step could include asking the customers about how they perceive the brand. They could be asked about the factors they considered most effective in identifying the brand, ex, the name, logo or the color. Burger King and McDonald’s have brand association with the children. McDonald’s is often said to have alliances with Walt Disney (Sexton, p.157). The attributes of the brand determines the possible extensions for the brand. An example can be cited in this regard. If a certain soap brand has a moisturizing effect, then the possible opportunities of extension would include lotions and moisturizing creams. The two most prominent determinant of market opportunities are relative ability and attractiveness. Attractiveness would depend on such characteristics of the market like market growth and size. Relative ability is the likelihood of success of the brand based on the market opportunities and the target market (Sexton, p.158). While considering the consequences of brand extension, it is important to consider the strength of association between the original brand and the product or service category. Also any association of the new product with the original brand must also be considered. At times such associations can have damaging effects. For example, Bausch & Lomb produces contact lenses. However, they tried to extend their brand and produced mouthwashes. This was not accepted by the people. This is because they could not relate the new product with the parent brand. This brand did not survive. This shows that the new products must be in line with or have some association with the parent brand to attain success (Sexton, p.159). The final step includes selecting the opportunity. An evaluation has to be made regarding how attractive each opportunity is. The relative ability of winning also requires evaluation. The final consequences of implementing an opportunity also require analysis. It is believed that it should be the responsibility of the company to look for the right partners, and not undertake expansion so quickly that it would not be able to provide the support to its partner. Following is a clothing example in which the attributes associated with the brand would include sweater. Figure 1: Attributes and opportunities audit (Sexton, p.159) Co-Branding It is seen that through the strategy of brand extension, new products can be linked to the parent product which would possess its own associations. Co branding also referred to as brand alliances or brand bundling is formed with the combination of two or more than two brands. The two brands are marketed together and also in the very same way. The co branding strategy has been widely used for many years and is an immensely popular strategy. An example can be cited in this regard. Co branding occurred between Betty Crocker and Sunkist Growers which was used for the marketing of a “lemon chiffon cake mix” (Keller, p.311). Co branding used as a means of increasing the brand equity of a product has been used since many years. Some of the advantages of co branding have been pointed below: * Borrow the required expertise * Leveraging the equity of the brand which it does not have * Reducing production cost * Expanding the meaning of the brand into other related categories * Increase the access points; and * Source of greater revenue. One of the primary importances of co branding is that the product can be uniquely and convincingly positioned in the market by the virtue of multiple brands that are present in the campaign. Co branding is said to create a number of compelling points to be differentiated which otherwise would not have been feasible. This results in achieving greater sales not only from the present market but also from the opening up of new opportunities from the new channels and customers (Keller, p.311). It can result in lower costs of production because of the combination of two or more known and established images. Co branding can also be regarded as a means of learning about new customers and the way in which organizations approach them. In case of product categories which are poorly differentiated, co branding can be used for the creation of distinctive products (Keller, p.314). However, at times the strategy also involves risks. The company might lose control over its brand. A consumer’s expectation with regard to the commitment levels and involvement with the brand is also likely to be high. Performance below this expectation could lead to negative repercussions for both or all of the brands. If a certain brand enters into various other co branding arrangements, this would lead to overexposure and thus would dilute the importance of the associations. It could also lead to distractions and demonstrate poor focus of the brand (Keller, p.314). Besides ensuring the strategic considerations, managers must enter into such ventures with utmost care. Along with the existence of an appropriate brand equity balance, managers must ensure there is a fit between the brands in terms of values, goals and capabilities. The existence of legalized contracts, financial arrangements, and coordinated marketing programs are some of the prerequisites of co branding. Besides this, co branding requires various decisions. These are the product capabilities, the resource constraints, in terms of time, money and people, the organization’s goals and revenue needs. Most importantly before making such a venture it is to be determined whether the business venture would be a profitable move or not (Kilter, p.330). Success factors of co-branding The co branding success factors can be derived from the success factors of the regular brand transfers, namely brand extensions and line extensions. This is not surprising because co branding can be considered to be another kind of extension of a brand which involves two or more brands are extended to create a new product (Begemann, p.45). The primary requirement for the extension of a brand is the presence of the brand equity which carries the potential to be extended. The brand equity and their respective potential to be extended bears the foundation on which all the other success factors are dependent. More precisely, brand awareness and brand quality in terms of the brand association account for the main factors of success for line and brand extensions (Begemann, p.45). Apart from the brand which is derived from the brand image, the other success factor is determined by the fit between the new product and the brand. This implies the product fit as well as the brand equity accounts for the main factors of success in co branding. The success associated with the individual partners in co branding can be rated individually by the participating organizations. This can be done along the dimensions of the direct and spillover benefits. The direct benefits arising from the product co branded affect the partners associated with the co branding to the same extent. A slight variation in the success factors exists depending on the spillover effects which are considered. But additionally, the combination of two brands to produce a new product brings forth a new success factor which is evaluated hereinafter. This is the extent to which the two participating brands fit with each other (Begemann, p.45). One of the prerequisites for co branding is a decent amount of awareness of the brand and also favorability of the brand associations. But this level of brand equity is possible to be achieved only when co branding occurs from a brand pool and is not subjected to the same resource constraints and gaps which the individual brands were subjected to (Begemann, p.46). Additionally, the brand awareness associated with the participating brands has a positive influence on the attitude of customer towards the product co branded. Simonin and Ruth (1996) have tried to analyze how important the brand equities are for co branding and have concluded that the brands which have lower awareness in comparison to the partner brands have a lower contribution towards the co brands success. Additionally they also experience the benefit of a spillover effect than the brand which is more familiar. If such brands try to enhance their awareness and also create perceptions of high quality they should try to seek partners which have strong brand equities and also come from a different category of product. This is because heterogeneity increases the perceptions of quality of the brand which is unknown. In times of introduction of new brands in the market which does not possess an observable attribute, co branding is considered to be the most promising strategy provided the partner involved has strong brand equity (Begemann, p.46). The second success factor involved in co branding is the product fit. Product fit is best described as the extent to which the product categories of the respective brands fit with the category of the co branded product. The evaluation based on the consumer’s perception affects the attitude of customers towards new co branded product and also the participating brands (Begemann, p.47). The closer the product category is towards the participating brands, the more positively has consumers rated the co branding partnerships. Here, a doubt arises whether such small brand gaps vindicate the expense involved in co branding where a normal brand transfer renders the same amount of consumer appraisal also does not involve collaborating with another external brand. Thus it is said that product which have ‘high product fit’ should be branded on its own while products with lower product fit neither qualifies for cp branding nor for single brand transfers. However, it is seen that when the product fit remains at a moderate level, in such a case co branding becomes the most appropriate and promising strategy. Additionally it can be said that the experiential brands can more successfully be extended to large number of categories while the functional brands remain limited to the genuine category (Begemann, p.47). Another critical factor for co branding is brand fit which is more specific to co branding. Brand fit primarily describes the two dimensions of success, i.e., complementarity and similarity of brands. Firstly, brand identity and consumer based brand image should correspond to each other to certain extent. Thus fit between the brad associations would be the fundamental requirement in co branding. This is because it adds positively to the people’s attitude towards the co branded product (Begemann, p.48). However, there should also be a certain level of complimentarity among the partners. It accounts for one of the principle drivers of success for co branding. The two brands complimentary contribution is used as an added advantage for the co brand. When brands complement each other, each participating brand enjoys a greater and a better consumer’s appraisal. It also enhances positive formation of attitude towards the co branded product. Masstige Method The word ‘masstige’ has been derived from the mass and prestige and are also referred to as an amalgamation of prestigious brands and the mass market. Masstige brands include product categories which have a formidable brand image among the consumers and are priced at low levels in order to target the mass markets. These product categories occupy an intermediate space between the premium and the mass market segment products. Products under the masstige brands are placed over the conventional or mass market products but are relatively lower as compared to the super luxury products with regards to the value addition. Masstige brands are increasingly being used by organizations to target the mass market consumer audience. This strategy has been found to be highly effective in the urban areas which have a high concentration of the target market segment intended for such products. Masstige brands have large scale potential with new product segments but are prone to be attacked by products that have similar product features at lower cost or from the luxury product segment which can enhance the value of the product offering by many times at a small premium. The masstige branding strategy was successfully adopted by Motorola in India which helped it to capture a fair share of the market from the market leader Nokia. Electronic goods manufacturers have also used this strategy in the context of LCD and high definition televisions by offering the premium ended product at an affordable rate with reduced features. The main reason for the success of masstige brands has been attributed to the aspect of aspiration in the mindset of the consumers. Motorola used the combination of style and looks to capture the aspiration based needs of the consumers in the target market which generated large scale benefits for the organization as it could capture a fair share of the market from the market leader without going in for an all out attacking strategy on the market leader. The strategy of masstige branding is also beneficial to the consumers especially in the developing markets where the consumers can move a step up in the value chain without paying a premium or shifting loyalties with the existing low priced brands, which are available in the consumer market. (In Focus 69). Co-Branding Associations In the words of Ries and Trout, “the basic approach of positioning is not to create something new and different, but to manipulate what’s already in the mind, to retie the connections that already exist” (Healey 38). A strong brand can be said to occupy a clear and well-defined position in the minds of customers. They dominate all the other brands within the same category. For example, Adidas is the leading brand in sportswear, while Honda is the leading brand in cars. But these brands do not necessarily remain restricted to one particular category. Adidas also sells fragrances for men and women, and Honda also sells boats, planes and motorcycles. Brands are said to inhabit certain categories but do not necessarily belong exclusively to those specific categories. For instance, Adidas is also associated to winning and to championships, and not just sportswear. Similarly, Honda can also be associated with reliability and style, and not just wheels and tires. This concept is known as brand associations. A popular brand might be applied to a category, which would largely reflect its truth. One effective strategy used by new and growing brands is the tactic of associating themselves with another brand, which is an established, credible and reputable brand. Such co branding associations are said to be analogous to the four P’s of marketing (Healey 41). Primary Research In order to have a comprehensive analysis of the various aspects of co-branding, a primary research study, by means of a questionnaire survey, would have to be carried out. This would help in gathering first hand market information about the research topic. In what follows are the sections that would present the research methodology adopted for this study, which would be followed by an analysis of the responses generated from the questionnaire. Research Methodology Research Question The primary research question will focus on analyzing the notion of co-branding in business organizations. The research will attempt to uncover the different dimensions of co-branding and its effects on the image of an organization, as well as its contribution towards the organizations’ long-term profitability and sustainability. Hypothesis Testing A hypothesis is defined as a tentative conjecture made by a researcher, which is subject to further validation and testing. Hypothesis testing is primarily done in order to determine the possibility behind a particular topic or to determine the interrelationship between a set of two or greater than two variables (Crisp 233). The null and alternate hypothesis for the research study is stated below: Ho: Co-branding, as a strategic tool, is beneficial for organizations to cater to the growing needs and competition in the market. H1: Co-branding is a risky proposition for the organization and does not add value to the firm. Sampling Sampling involves selecting the target population for a particular research study. A target population is defined as “the collection of elements or objects that possesses the information sought and desired by the market researcher and about which inferences are to be made” (Malhotra 330). Sampling can be done in two ways, namely, probability and non-probability technique. In the context of this present study, the probability sampling technique will be used. Herein, the respondents for the study are selected randomly. The individuals in the sample are highly homogeneous but show large-scale differences as compared to the other groups. Moreover, a simple random sampling technique will be used in the study. Under this sampling technique, every individual has an equal chance for being selected as a respondent of the study. In this form of sampling, the different units, which correspond to the selected population, are indicated and assigned specific numbers, and these units will be selected for the final study (Babbie 211). In the context of this present study, a sample size of fifty respondents has been selected. The respondents will comprise of individuals who are engaged in the field of branding especially in the case of luxury products. Data Collection Data collection involves collecting responses from selected respondents. A questionnaire (refer annexure) has been formulated, which will be used to collect data from the respondents. The responses will be collected from the respondents through e-mail and telephone conversations. The questionnaire contains open-ended questions, which would be helpful in analyzing the data through the use of qualitative research methods. The use of qualitative methods and an open ended questionnaire would help contribute in an in-depth analysis of the research topic, and would not limit the respondent with regards to the information related to the research question. This type of questionnaire is also referred to as an unstructured questionnaire, as it does not contain fixed responses, as in the case of a closed ended questionnaire, which normally limit the respondent in terms of the information asked for with regards to a particular research question (Brace 51-52). A focus group interview technique will also be used to collect data from the set of selected respondents. Under this technique, a set of selected respondents is interrogated regarding the research topic. This semi structured approach helps in situations where an in-depth analysis is required, for this technique of data collection does not limit the respondent in terms of the information that an individual possesses with regards to the main research at hand (Collins 211). The data collected from the survey will be analyzed qualitatively. Qualitative research methods involve a method of analysis wherein data from the survey is not quantified. However, an in depth analysis will be performed using the collected data from the respondents throughout the course of the survey (Nykiel 39). Limitations The primary research will be carried out carefully to reduce the rate of errors; however certain errors may nonetheless arise due to external factors such as the respondent’s errors. The limited time frame for the completion of the study also appears as a limitation for this research. Cost is also a major factor that could emerge as a serious limitation for this study, considering the limited resources available for conducting this specific market research. Data Analysis The responses generated from the survey will display uniformity among the respondents with regards to the importance of branding. Most of the respondents hold on to the belief that in this present age of competition, it is very important for firms to ensure favorable brand positioning. This is because they feel that brands are increasingly being used by consumers to differentiate their products and services offered from one firm to another. The respondents also share a belief that the importance of brands could be seen from the fact that successful brands, like Apple and Microsoft, are valued in billions just because of the power of these brands. The findings of the survey also reveal that branding is more important in the case of luxury goods. The respondents attributed this to the consumer behavior of premium customers who do not mind paying a premium for goods and services in exchange for better products. These consumers would easily switch brands if they do not find the brand image favorable to suit their demands. It was also observed from the responses generated from the respondents that brand image was as important with the product mix of a particular product. Branding and brand image helps in giving a unique identity to a particular product or service offering. The respondents also stated that an effective brand image not only helps in generating an image in the minds of the consumer but also helps in ensuring competitive advantage for an organization. In response to a question on the prevailing competition in the consumer market, there was a unanimous response that the present age of consumer markets has enhanced the level of competition by leaps and bounds. The respondents attributed this to two main reasons of which the primary and most important being globalization and the opening up of economies across the world. Globalization has changed the business landscape of the earth by turning it into an open and boundary-less market where organizations from any part of the globe could aim to capture a portion of the lucrative consumer market segment. Almost all major brand names have started expanding their reach beyond their traditional markets. The respondents also pointed out that the large-scale economic growth of developing nations has enhanced their disposable level of income among the consumers. This is true for almost every developing nation like India and China, which have a huge market potential due to its large population. The development of the economies of these regions has further accentuated the importance of these consumer markets. As a result, competition has increased in these markets for almost every other organization is trying to capture a share of the market. This has also enhanced the demand for luxury products. The respondents also believe that in such a scenario, branding and brand image has become one of the primary areas of importance for organizations that are operating in the globalised consumer market. The analysis of the data reveals considerable enthusiasm among business organizations with regards to the aspect of co-branding. Respondents share a belief that co-branding helps in the greater co-operation and successful co-existence of firms. The respondents reflect a common view that co-branding was a highly successful strategy in new markets where it was difficult for one organization to enter and successfully sustain itself in the market. The data collected from the survey also reveals that co-branding helps in sharing the expertise of firms in different areas like operations, marketing, etc., which could be used to attain sustainable competitive advantage. Respondents also share a common view that with two different entities teaming up as a single unit, they would considerably reduce the risk of investment. In addition, a few respondents also claim that the brand value of a co-branded product increases as the combined brand values get added together. This was also true for co-branding of products with celebrities who themselves act as the model of the brand. However a set of respondents also emphasized that the lack of proper planning and carelessness in selecting a partner could lead to drastic effects on the brand’s image, as well as the sustainability of the organizations involved in co-branding. The survey conducted among the respondents also revealed the fact that by considering the risks involved in co-branding, it was evident that firms undertake a thorough analysis of the process of co-branding. Respondents also believe that there are certain prerequisites for initiating co-branding. The most important among these is the ability to ensure that the consumers are able to identify the brand easily and that there will be no confusion among the target consumers. In addition to this, respondents also state that there should be a similarity among the brands that are willing to go in for co-branding, as any dissimilarity would lead to disastrous consequences for both the organizations. The responses also indicate that the two brands should not compete against each other independently as it could create confusion among its consumers. This is more important for luxury brands, for the premium segment of consumers are generally more specific and brand conscious, and are thus prone to switching brands, given that they do not find a specific value in the product or service offered. Finally, some respondents believe that it was necessary for the brands that venture into co-branding, not to be aligned horizontally, as horizontal integration could lead to greater conflict and confusion, which in turn may harm the image of the brand and the concerned organizations in the long run. The survey results reveal a positive correlation between brand image and positioning. Majority of the respondents share the view that a favorable brand image will lead to a better positioning of a product or service in the minds of the consumer. With regards to co-branding, respondents claim that the brand image of both organizations are important for the brand image of a co-branded product is dependent upon the combination of the brand image of the two brands involved in the co-branding. A set of respondents also emphasized the importance of the positioning of the products and brands that co-branded with celebrity endorsers. The respondents state that in the case of co-branding with celebrities, it is essential that the products that will be endorsed will resemble a similarity with the personality of the celebrity. This compatibility was essential for co-branding, for it would be the determining factor of the image of a particular brand in the minds of the consumers. The primary study reveals large-scale advantage for organizations engaged in co-branding. These include risk sharing, combination of expertise, as well as co-operation between two brands in order to create a sustainable environment for two or more organizations. Respondents reveal that co-branding was a useful tool that could help take care of large-scale competitions prevailing in the consumer markets. Respondents also state that co-branding could be used to undertake a combined market research that would help to create a better analysis of the market. Some of the respondents also claim that co-branding also helps organizations to get better bargaining powers with its suppliers as a unified brand with a strong brand image. Favorable positioning would also contribute in the long-term strategic advantage of any organization in the consumer market. Finally, with regards to the co-branding of luxury products, the respondents state that co-branding in the case of luxury products provide greater advantages. Respondents also state that luxury goods require greater planning as they represent the social status of an individual. The consumer preference for this product category is also highly specific as they target consumers that are known to pay a premium for goods and services in exchange for greater value. A number of respondents feel that co-branding with a celebrity, which is often practiced by leading brands, require careful attention with regards to the compatibility of a particular product with the traits and image of a celebrity. Compatibility was important as it could lead to confusion, in the minds of the consumer, with regards to a particular brand. The survey also showed that cross-cultural barriers must also be considered while formulating a co-branding strategy. This is particularly important for luxury products when they are being marketed in different countries that have their own diverse cultures and consumer behavior. Result The main aim of this research study is to analyze the different aspects of co-branding. The analysis of the survey reveals considerable opportunities as well as advantages, with regards to the adoption of co-branding as a strategic tool. The main advantages include sharing of expertise, risk sharing, and successful co-existence in the tough competitive market. This enables firms to provide greater value to the stakeholders as well as the consumers. However, certain issues need to be addressed, which include the compatibility among the brands, its legal aspects, and its cross-cultural dimensions. The study also reveals considerable importance for brands as they provide a distinct identity to a particular good or service, and differentiates the products from the rest of its kind in the market. This is crucial because the positioning of the product largely depends on the brand image of a particular brand, which ultimately decides the acceptance of the product or service in the consumer market. Hence on the basis of the research conducted, we can accept the null hypothesis that co-branding, as a strategic tool, is proved to be beneficial for an organization to cater to the growing needs and tough competition in the market. Conclusion The present study is aimed at understanding the different aspects of co-branding in the present business environment. The analysis of the consumer market reveals considerable potential for organizations to pursue their business interests, with the rise of globalization adding to the attractiveness of the business market. On the other hand, this also shows considerable challenge in the form of large-scale competition within the consumer market. Numerous organizations have resorted to adopting the strategy of co-branding to successfully sustain its growth within the consumer market. This also includes big companies such as Intel, KFC, etc., which are among the world’s leaders in their respective business segments. Co-branding offers a unique strategic solution for organizations to counter the competition on the one hand, and to gain strategic advantage of the market on the other hand. It also provides other distinct advantages such as technology and expertise sharing, risk management, and greater bargaining power with regards to the suppliers. Co-branding is also beneficial in terms of combining the good aspects of two different brands, each of which has a certain distinct advantage. Co-branding brings together the distinct advantages of two brands to a single common platform. This provides better advantage to the organizations while pursuing their business interests. Co-branding also provides access to a larger consumer base. Co-branding with celebrities also adds to the value of the product or service offered. In spite of the above stated advantages, co-branding can also entail challenges to the organizations. These challenges include various legal aspects, mismatching the value and culture of the two brands, as well as the similarity in the positioning of the two brands, which are both trying to enter into a co-branding agreement. Compatibility between the two brands is perhaps the most important aspect that must be considered by the brands while entering into a co-branding agreement. This would not only help in better planning and co-ordination but would also contribute towards an added value for both brands. Finally, firms must pay considerable attention to the significance of local culture, as well as the sentiments of the consumers in a particular geographical location. This is important considering the fact that multinational firms target consumers from different areas who distinctly possess cultures, which affect consumer behavior in a particular consumer market. Adopting this strategy in co-branding would not only help manage the rise of competition in the market, but would also help in the long term sustainable advantage of the organizations within the global consumer markets. References Babbie, E.R. The Practice of Social Research. Cengage Learning, 2010. Begemann, F. Co-Branding as a Brand Strategy – An Analysis from the Resource-based View. GRIN Verlag. 2008. Bengtsson, A. & Servais, P. 2004. Co-branding and the impact on inter-organizational relationships. February 22, 2011 < http://www.impgroup.org/uploads/papers/4499.pdf> . Bloomhead. Brand extension and line extension. 2007. Brand Extension. The Benefits and Pitfalls. February 23, 2011. < http://www.bloomhead.com/KnowledgeBox_Jan07.pdf>. Brace, I. Questionnaire Design: How to Plan, Structure and Write Survey Material for Effective Market Research. Kogan Page Publishers, 2008. Brand Cameo. Brand. 2011. Brand Channel. February 22, 2011. < http://www.brandcameo.org/education_glossary.asp>. Collins, J.M. Preventing identity theft in your business: how to protect your business, customers, and employees. John Wiley and Sons, 2005. Cost, R. What makes people like brands?. No Date. What is a brand? February 22, 2011. < http://www.brandingsalon.com/blog/White_Papers/BSalon-whatisabrand.pdf>. Crisp, R.D. Marketing research. Tata McGraw-Hill, 1957. Haeley, M. What Branding Does. What is branding?. Rockport Publishers. 2008. In Focus. 2009. ORGANIC VS. INORGANIC GROWTH. February 23, 2011 < http://www.iisjaipur.org/iiim-current-09/OORJA-May-August-2009/03Infocus.pdf>. Keller. Strategic Brand Management, 3/E. Pearson Education India. 2008. Kotler, P. Marketing – Management. Pearson Education India. 1972.  Malhotra, N.K. Marketing Research: An Applied Orientation, 6/E. Pearson Education India, 2010. Nykiel, R.A. Handbook of Marketing Research Methodologies for Hospitality and Tourism. Routledge, 2007. Prideaux, B., Moscardo, G. & Laws, E. Managing tourism and hospitality services: theory and international applications. CABI, 2006. Sexton, D. Trump University Branding 101: How to Build the Most Valuable Asset of Any Business. John Wiley and Sons. 2008. Verma, R. Brand Management. Laxmi Publications, Ltd. 2009. Bibliography Altinay, L & Paraskevas, A. Planning research in hospitality and tourism. Butterworth-Heinemann, 2008. Baker, J. B. & Hart, S. The marketing book, Volume 2003. USA: Elsevier Ltd, 2008. Print. Baker, M.J. & Hart, S. The Marketing Book. Butterworth-Heinemann, 2007 Crane, A. Marketing, morality and the natural environment. New York: Routledge, 2000. Print. Croft, M.J. Market segmentation: a step-by-step guide to profitable new business. Routledge, 1994. Kurtz, D.L., MacKenzie, H.F. & Snow, K. 2009. Contemporary Marketing. Cengage Learning. Hiebing, R.G., Hiebing, R., & Cooper, S.W. The one-day marketing plan: organizing and completing a plan that works. McGraw-Hill Professional, 2004. Hooley & Graham, H. Marketing Strategy and Competitive Positioning. Pearson Education India, 2008. Lamb, C.W. Hair, J. & McDaniel, C. Essentials of Marketing. Cengage Learning, 2008. Okonkwo, U. Luxury fashion branding: trends, tactics, techniques. Palgrave Macmillan, 2007. Yeshin, T. Integrated marketing communications: the holistic approach. Butterworth-Heinemann. 1998 Winer. Marketing Management, 3/E. Pearson Education India, 2007. Annexure Questionnaire Name: Designation: Gender: Age: 1. Comment on the importance of branding in the present day business scenario? 2. Comment on the aspect of competition in the global consumer market? 3. Comment on the importance of co-branding in the present consumer market? 4. What are the pre requisites of co-branding? 5. Do you find any linkage between brand image and positioning? 6. What according to your views are the advantages and disadvantages of co-branding? 7. Comment on the feasibility of co-branding for luxury products? Read More