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Rex Whisman

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May 14, 2011

Comments

MBT Online

Nice topic and post, as we were just talking about what things can happen in the medicine industry.

Ali Hadi

Successful co-branding must achieve equal value for all parties in any relationship; partner brands' values need to match each other; and the resulting strategy must be easily understood by consumers.

Ali Hadi

somebody has written on my wall today about co-branding strategy b/w two countries,"1st they need a know-each-other".

They know-each-other "since 1960">> If the potential relationship doesn't represent clear value for both parties, forget it. What's more, forget everything about trying to fashion a better deal out of the arrangement than your partner's deal. No relationship in which one of the two parties has a better deal has survived. This doesn't mean one brand can't be very well known and the other totally unknown. It means the benefit to both parties from the relationship must be equal.

Rex Whisman

Ali Hadi thank you for your insightful comments. I think the approach you are advocating has promise. It is an approach that might be unfamiliar to some Americans and others who live in large countries that have limited borders. Great to hear from you.

Ali Hadi

@Rex: I’m fully agreed with you both countries required co-branding strategy to sustain the long term relationship and peace in the region. For many years, one of the most efficient methods for creating a competitive advantage on an international scale has been through branding. Therefore, creating a strong and unique brand that appeals to consumers is vital for success. Brand identities are carefully developed in an attempt to achieve the desired brand position. A recent trend that is gaining foothold on an international scale is cross-border brand alliances. Most of the companies engage in co-branding activities across borders in order to innovate and leverage the brand and mitigate replication risks. In order to investigate how a cross border alliance affects the customer-based brand equity of the parent brand. With point of departure in ingredient co-branding - where a parent brand integrates an ingredient brand in order to add new value - aspects of brand alliances were analyzed. The two brands that engage in an alliance should match each other on parameters as brand fit, equity fit, and product fit. A fourth parameter – country of origin fit - was added to the analysis of brand alliances as the concept country of origin increasingly is used by consumers when evaluating brands quality. Brand image fit was found to be the most important dimension of fit, whereas product fits influence was less significant. Further, country of origin had a tremendous impact on the alliance, when the brand was unknown to consumers. Country of origin seems to influence the alliance more, when the country is perceived negatively and it is vital for countries to consider this dimension of fit in order to avoid a negative impact on its brands identity.

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