A new product that is the result of two brands collaborating should primarily mesh with the values of those brands, rather than with their other products. It wouldn ' t be such a surprise if Hummer were to start making sturdy kids ' strollers, even though the firm mainly builds cars. Engaging in a collaboration may help improve the plausibility of ' brand-alien ' aspects in the customer ' s perception.
Philips entered into collaboration with, among others, Swarowski for the manufacture of a luxury, crystalstudded USB stick. Their goal was not so much to sell large numbers, but rather to adjust their respective positioning. The partnership enabled Philips to enhance the status of its products, while Swarowski ' s association with a high-tech company allowed it to upgrade its somewhat old-fashioned image.
comparison to other cartoon movies, then it might add only 10 % to a box of cornflakes. The reason is that the ' entertainment ' aspect for which Disney is famed plays a subordinate role with respect to cornflakes, where other aspects dominate such as nutritional value, flavour and convenience.
In addition one must ask what the position of the added brand is in comparison to the main brand. For Macbooks by Apple, for instance, having an ' Intel processor inside ‟ may not carry as much weight as for a weaker computer brand such as Toshiba.
Developing a unique product
Consumers often see one of the two brands as more important than the other. This is termed brand dominance. This is generally due to the fact that one brand triggers more associations in the consumer ' s perception, for example thanks to brand familiarity, the promotion upon introduction, the function of the product, or the distribution. Considering tablets with beneficial properties for the skin: should we associate these with skin creams( such as Biodermal) or with vitamin pills( such as Davitamon)? It may therefore prove useful to make one of the brands dominant, and to give the other brand a supporting role.
Co-branding actually means relying on the value of the added brand. The independent value of this can be calculated reasonably well using methods such as the Brand Asset Valuator( see above). Usually, the added brand is used to highlight certain aspects of the product. Accordingly, the added value should only be seen in relation to this aspect.
Suppose, for instance, that the Disney brand on a DVD cartoon makes it possible to ask a 50 % higher price in
Having a unique product is an important means of setting yourself apart on the market and of keeping your competitors at bay. It actually means that you have a small monopoly. This gives protection for
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