Co Branding
...rent layers of the hierarchy. Generally saying, co-branding has four layers in the hierarchy. Reach and Awareness Co-branding This is the lowest level of shared cooperation in a cobranding exerciseand its objective is to rapidly increase the awareness of the sharing brands through eachother’s strength in the respective domains. The examples for this type of co-branding is found in the credit cards. In fact co-branding of this type finds the maximum utility of co-branding. The benefits of co-branded cards to the cardholder is that he gets points whenever he uses it and he can get these points redeemed for additional products or services for free. Thus it builds loyalty to the brand or service in use by the customer. This is a sort of affiliate marketing between three brands viz a payment service franchiser (Mastercard, VISA), a bank and a product or service. Value Endorsement Co-branding This is the second level in the co-branding hierarchy wherein the shared value creation and the strength of relationship is such as to have endorsement of one brand values to the other witha strong affinity towards the other. The most appropriate example here would be of the companies getting involved with a cause with some non government organisation.eg. Thus here one of the brands gives a small proportion of its transaction revenue to charity and the brand comes to be associated in the public mind with a worthy cause and with a good citizen brand values. Ingredient Co-branding Intel Inside on a Compaq personal Computer explains the basis of ingredient co-branding. In this form there is a physical identifiable ingredient brand which has a high brand value for the customer and with it the value of the final product greatly increases. Here one of the strong brand is an ingredient to another strong brand adding value to the final product. The potential of value created in this cooperation is tremendous and without it the value of the product will be diminished significantly. Complementary Competence Co-branding This is the highest layer in the hierarchy of co-brnading. In terms of value creation it is just next to the Joint ventures. Here the two powerful and complementary brands come together and combine for a product or service that is more than sum...