The types of branding

Products are often combined with products of other companies in various ways. Co-branding or dual branding is a rising phenomenon in which two or more well known existing brands are joined into a joint product. The main advantage of co-branding is that a product may be convincingly positioned by virtue of the multiple brands involved. It can create larger sales from the existing target market as well as open additional opportunities with new consumers and channels. It is a source to reduce the product introduction cost as it’s the two well known brands that are combined. It is a valuable means to learn about consumers and how other companies approach them.

The disadvantage of co-branding is the risk and lack of control from becoming associated with another brand in the minds of the consumers. Consumer expectation about the level of involvement and commitment with the co-brands are likely to be high. Unsatisfactory performance leads to bad name to both the companies whose brands are associated with. If the other brand has entered into a number of co-branding arrangements, there may be a risk of overexposure which may dilute and transfer the associations. It may also result in a lack of focus on existing brands.

The success of co-branding is that the two brands separately have brand equity, adequate brand awareness and a sufficiently positive brand image. The most important requirement is that there is a logical fit between the two brands such that the combined brand or marketing activity maximizes the advantages of the individual brands while minimizing the disadvantage. Company looking for models have to make a detailed study about the types of companies that has joined and the type of image they have. It’s so because; sometimes it’s not necessary to have the same image for both the companies before the customers. It’s been found that, consumers are more apt to perceive co-brands favorably if the two brands are complementary rather than similar.