Co branding offers many advantages Because each brand dominates in a different

Co branding offers many advantages because each brand

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Co-branding offers many advantages : - Because each brand dominates in a different category , the combined brands create broader consumer appeal and greater brand equity . - Co-branding also allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone . For example, by licensing its Healthy Choice brand to Kellogg, ConAgra entered the breakfast segment with a solid product. In return, Kellogg could leverage the broad awareness of the Healthy Choice name in the cereal category. Co-branding also has limitations : - Such relationships usually involve complex legal contracts and licenses . - Co-branding partners must carefully coordinate their advertising , sales promotion , and other marketing efforts . - Finally, when co-branding , each partner must trust the other will take good care of its brand. Brand development: 14 هثدحم هخسن 1/31/2012
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BE200 Summary Prepared by: Honey Bonny (( دمحموبأ Brand development strategies A company has four choices when it comes to developing brands (brand strategy). It can introduce: 1. Line extensions: existing brand names extended to new forms, sizes, and flavors of an existing product category. 2. Brand extensions: existing brand names extended to new product categories. 3. Multi-brands: new brand names introduced in the same product category. 4. New brands: new brand names in new product categories. Line extensions: o Occur when a company extends existing brand names to new forms, colours, sizes, and flavors of an existing product category. Example: Dannon introduced several line extensions, including seven new yogurt flavors, a fat-free yogurt, and a large, economy-size yogurt. o Line extensions involve some risks. An overextended brand name might lose its specific meaning or heavily extended brands can cause consumer confusion or frustration. Brand extensions: o A brand extension involves the use of a successful brand name to launch new or modified products in a new category. Example: uses its company name to cover different products such as its automobiles, motorcycles, snow blowers, lawn mowers, marine engines, and snowmobiles. This allows Honda to advertise that it can fit "six Hondas in a two-car garage. o A brand extension has many advantages : - A brand extension gives a new product instant recognition and faster acceptance. - It also saves the high advertising costs usually required to build a new brand name. 15 هثدحم هخسن 1/31/2012
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BE200 Summary Prepared by: Honey Bonny (( دمحموبأ o In contrast, a brand extension strategy involves some risk: - Brand extensions such as Big pantyhose, Heinz pet food, Life Savers gum, and Clorox laundry detergent met early deaths. - The extension may confuse the image of the main brand. - If a brand extension fails, it may harm consumer attitudes toward the other products carrying the same brand name. - Brand name may not be appropriate to a particular new product, even if it is well made and satisfying. Multi-brands: o Companies often introduce additional brand names in the same product category.
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