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Additional info for Co-Branding: The Science of Alliance
We see the co-branding exercise as an extremely powerful alignment tool – taking the partners as well as the consumer beyond the conventional models of machine manufacturer/detergent and beauty salon/shampoos. Additional Consumer Benefits By using co-branding agreements businesses have been able to offer their customers greatly enhanced benefit packages, often at little additional cost to their mainstream operations. For example, a very wide range of companies have introduced credit or charge-card facilities: retailers, airlines, hotels, charities, oil companies and utilities such as telecommunications and gas companies, to name but a few.
Monsanto used this technique to great effect in launching NutraSweet. Rather than try to establish this innovative sweetener directly in the market, Monsanto first used it as an ‘ingredient name’ in their established Equal brand sweetener. Then they targeted established confectionery brands such as Diet Coke cola and Wrigley’s Extra chewing gum and convinced the manufacturers that their product had taste advantages over saccharin and other existing sweeteners but, rather than allowing it to become another anonymous ingredient, Monsanto persuaded the manufacturers that there were benefits to be derived from cobranding, with NutraSweet being identified in on-pack flashes.
In both these cases, the use of these strongly branded ingredient items, associated in the consumer’s What is Co-Branding? 13 mind with high quality, is heavily promoted in the car’s advertising to reaffirm the premium positioning of the vehicle. Similarly, Jaguar in the UK uses Connolly hide for its upholstery because of its quality brand image. It is not only in the premium/luxury segment of the car-market that cobranding is used to reinforce particular values. In the sports saloon niche, several manufacturers use Recaro rally seats, partly because their seats have the right look and feel for the image they are trying to create and partly because the brand image of Recaro provides effective substantiation of the car’s brand positioning.