The paper "Multibranding Strategy: Co-Branding" is a great example of a business research paper. Co-branding is a marketing strategy, under which two brands are merged to form a new product, in order to increase sales. These brands may have long term or short term associations, under this strategy. A new brand name may represent these two brands, which symbolizes them. One of the strategies employed in this process is that the host brand is associated with the secondary brand, so as to provide it with additional qualities. Another technique of co-branding is to combine the unique characteristics of one of the brands is incorporated into the qualities of the other brand.
The objective of this exercise is to obtain the best possible success for these products (Luczak, Pfoertsch, Beuk, & Chandler, 2007, 125). It is the combination of two brands, so as to improve product significance and attract customers. It enables companies to increase their market presence and profits. The reputation and domination enjoyed by each of these brands are significantly increased by this process. This mechanism provides individual brands with new market opportunities and has exerted considerable psychological influence on consumers.
Co-branding causes the impression among consumers that their preferred brand has additional benefits. This strategy increases marketing opportunities, as more consumers tend to purchase products that are promoted, in this fashion, with reputed products (Panda). Companies employ the co – branding marketing strategy to promote sales and enhance awareness about their products among consumers. Co-branding is an effective means of marketing that varies from recommending additions to products; to integrating sophisticated technologies, so as to bring about a new product.
An instance of the former is the suggestion that Hershey’ s syrup is added to Betty Croker Brownies, and that of the latter is the creation of the highly sophisticated Sports Kit by the combined efforts of Apple and Nike (Crawley & McKee, 2009). Co-branding has found favor with restaurant owners and franchisors. These entities have commenced to successfully, combine a number of business ideas at one place. For instance Yum! has established restaurants in places that are not conducive to a single notion, and it has ensured that other brands are also available at these places.
This has ensured an increase in the turnover of these restaurants (Enz, 2005, 85). It was observed that operational complexity has increased significantly, due to having to provide several brands at the same outlet. Nevertheless, this measure has enabled Yum! to bring about brand expansion, not only in terms of increased sales but also in the number of its restaurants. Another project on the anvil is to combine its Pizza Hut products with Pasta Bravo (Enz, 2005, 85). This strategy assures customers of a considerable degree of quality, in these products.
It reduces investment costs and risks and provides a quicker realization of profits. The host brand, in this process, is the original brand of the product category, from which the newly created product had been placed on the market. The secondary or ingredient brand provides the ingredient or technical knowledge to be used with the final product. (Luczak, Pfoertsch, Beuk, & Chandler, 2007, 125). The process of co-branding has emerged as a common trend, during the recent past. This strategy bestows benefits upon the companies, as well as the consumers.
It engenders instant brand recognition, and even brands that do not enjoy a wide consumer base can benefit from this mechanism. In addition, there is a considerable financial benefit to such companies; because there is a sharing of advertisement space and costs, operating costs and other expenditure.
Crawley, D., & McKee, S. (2009). Two Brands Trumpet One Product. Retrieved December 3, 2009, from BusinessWeek: http://images.businessweek.com/ss/09/07/0710_cobranded/index.htm
Enz, C. A. (2005). Multibranding strategy: the case of Yum! Brands. (CQ cases). Cornell Hotel & Restaurant Administration Quarterly , 46(1), 85 – 91.
Luczak, C. A., Pfoertsch, W., Beuk, F., & Chandler, J. D. (2007). In-branding: development of a conceptual model. Academy of Marketing Studies Journal , 11(2), 123 – 135.
Panda, T. K. (n.d.). Through Succesful Co-branding. Retrieved December 3, 2009, from http://dspace.iimk.ac.in/bitstream/2259/203/1/Strategic+Advantage+through++Successful+CoBranding.pdf