Identify at least one product (consumer or B-to-B product) and one service (consumer or B-to-B service) that employs co-branding. Identify and discuss the value and benefits derived by each of the co-branding partners, as a result of the co-branding effort.
Are there any risks associated with this co-branding partnership that could impact one or both of the partners? Discuss the risks that may arise, and to the extent possible, illustrate risks that have been experienced in the co-branding efforts of existing products and services.
Below you will find several examples of Co-Branding. Do NOT use these examples as your submission. You may refer to them in your write-up for comparison purposes, but you must identify at least one product (consumer or B-to-B product) and one service (consumer or B-to-B service) that employs co-branding that does not replicate the samples that appear below.
Identify and discuss the value and benefits derived by each of the co-branding partners, as a result of the co-branding effort. It must be at least 2 pages.
Dell â Intel
Dell computers advertise with Intel. Intel is known for its powerful processors and is almost a market leader. Naturally, when Dell claims that it has âIntel Insideâ this benefits the brand tremendously.
Intel itself cannot keep advertising its processor because the processor on its own does not serve any function. This co branding exercise has been around since many years now. This is because Intel and Dell when advertised alone, will have lesser advantages as compared to when advertised together.
Uber and Spotify
This partnership allows Spotify users to listen to their favourite songs while theyâre in an Uber ride. It provides an exclusive experience for Uber riders, Spotify customers have another a reason to pay for a premium membership, and it also gives both companies an edge over competitors like Lyft, Apple Music, and YouTube. The idea of taking a cab where one can play their own tracks offers added value and exclusivity for Uber cars. For Spotify, it offers a reason for users to upgrade to the premium level and an interesting service offering.
Fords Eddie Bauer Trim
The Ford and Eddie Bauer co-branding exercise was a tremendous success, Ford wanted to leverage on Eddie Bauerâs reputation for making durable, adventure-ready clothing and believed that it would make a great luxury trim package on its 4×4 vehicles.
Beginning 1985 with the Ford Bronco and eventually became available on the Explorer, Expedition, Taurus X and even the Aerostar minivan. The trim was easily identified by gold-colored lower fascia, the Eddie Bauer package was offered on various Ford SUVs for around 25 years with millions of units being sold.
Risks
Starting from the 1990âs, Intel powered computers have been fairly common and the company provided processors for endorsements by the manufacturers with a sticker that read âIntel Insideâ. In a co-branding arrangement both brands can benefit from joint publicity campaigns and positive word-of-mouth marketing, there are also downsides attached. In a scenario where one of the brand falls into crisis, the negative publicity can also damage the reputation of the second brand, suggesting that its important to evaluate the objectives of the partnerships and the downsides in advance.
Sometimes brands might experience a very high demand after their co-branding efforts, if one brand can keep up with this demand, but the other cannot, then this outcome may drag down the reputation of both brands.
Shell + LEGO®
Dutch oil company Shell and popular Danish toy company Lego had a successful partnership for well over 50 years. That came to an abrupt end when Greenpeace noticed this partnership and believed that it wasnât right for children to play with toys that had the name of a petroleum company having a history of questionable environmental practices. Greenpeace released a video that criticized the partnership. The public responded, and in 2011 the ShellâLEGO partnership came to an end.
Volkswagen Touareg Kong Edition (2005)
Volkswagen introduced this version as the same version of the car that was used to film King Kong (2005). Instead of getting a suspension upgrade or an engine tuning, this was a just slightly optioned Touareg with a badge to remind the customers that they purchased a special edition vehicle.
Finally, co-branding efforts involving two or more different companies generally involves a considerable amount of legal negotiations and profit sharing arrangements between brands and companies involved. Attention is given not only to the branding efforts but also to the impact of the co-branding effort and the profits enjoyed by the partners.
