Co Branding

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CO-BRANDING
 Definition, types,
prerequisites of
co-branding
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 Benefits of
co- branding

 Drawbacks of
co- branding

 Some examples
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01
Definition, types,
prerequisites of co-
branding
 Definition
Co-branding is the
strategy that strives to
capture the synergism of
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combining two well-


known brands into a
third, unique branded
product (Rao and
Ruekert, 1994).
 Types of co-branding
Ingredient co-branding:
Brands collaborate based on compatible ingredients
amongst them.
Example: Dell + Intel Co-brand
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Composite co-branding:
Combining the strengths of two or more well-known
brands that are usually not easy to promote
individually.
Example: BMW-Louis Vuitton Co-Brand
 Prerequisites of co-branding
 Brands are easy to identify based on their product or
trademark

 Brands provide different variety of items, which are


considered to be the best value for the price
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 There is a symbiotic relationship between the two


brands

 Brands are compatible and complementary, but not


competing with each other
 Brands should bring different products and/or services
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02
BENEFITS OF
CO-BRANDING
Product image enhancement,
since they are associated with
another renowned brand

Brands can Joint advertising,


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share the risk which gives them a


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and cost wider scope

Technological The customers


benefits tend to trust the
product more
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03
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DISADVANTAGES OF
CO-BRANDING
 Disadvantages of co-branding

1. Uncertain amount of time


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given for building relationship


between business
 Disadvantages of co-branding
2. Incompatibilities of both brands
Cultures, attitudes, value
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Operational aspects (deliveries, inventory


keeping, accounting systems, sale)
Sibling brands of one
 Disadvantages of co-branding

Yum Brand
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 Disadvantages of co-branding
 3. Negative impacts of one overextended side
 4. Alteration in strategy, positioning, marketing
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or vision of one brand


 5. Changes in financial status of one brand or
both brand
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04
SOME EXAMPLES
 SOME EXAMPLES
Vietcombank – Vietravel
co-branded card
- Cardholder will receive cashback of 0.2
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- 0.5% spending volume at POS of VCB

- Cardholder can be accumulated


rewards points for Vietravel
membership

- Card service fee benefits


 SOME EXAMPLES
New World Phú Quốc Resort
(Sun Group & Rosewood Hotel Group)
- Built by Sun Group with 375 villas
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- Sun Group with Rosewood Hotel Group in


management and operation

- Expected to make it a leading regional


destination in the near future.
 SOME EXAMPLES
Vietjet TravelCare
(Vietjet & Chubb Insurance Vietnam)
- Vietjet TravelCare is especially designed for
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Vietjet passengers and underwritten by


Chubb Insurance Vietnam

- Your travel inconveniences such as an


accident, trip cancellation and other travel
inconveniences will be taken care of.
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Thanks For Your Attention!

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