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This question has been closed, and points have been awarded.
Failures In Co-branding
Posted By: Neeraj* on 11/1/2004 5:41 AM (CST) 250 Points
There have been a lot of Co-branding exercise around the world. Identify a few failures of co-branding exercise beyond the credit card category.

Posted by: Jett* Accepted Answer
11/1/2004 8:58 AM (CST)
the following industries perform a lot of co-branding:

1. Travel

2. Automobile Dealers

3. Website designers and hosts

4. Wholesale products (t-shirts, food,)

5. Toys

6. Sunscreen/Lotion

I hope this helps!
 
Posted by: SRyan ;] Accepted Answer
11/1/2004 12:18 PM (CST)
How about the ballpark for the Houston Astros? For a while it was Enron Field!
 
Posted by: SteveByrneBranding Accepted Answer
11/2/2004 5:06 PM (CST)
Here are a couple of links that might be helpful --

A McKinsey study saying co-branding ventures have grown over 40 percent indicates that co-branding is as much practice as it is theory. Do co-branded ventures really achieve the positive synergy participants seek? Or does only one brand end up the winner in these partnerships? Have any brands been winners at all?

Source:
http://www.clickz.com/experts/brand/brand/print.php/984831


Co-branding in the hospitality industry can also be difficult and complicated. The idea of introducing new variables that can complicate day-to-day operations is one of the major drawbacks. Hotel management teams have to be sure that partnering with a branded food and beverage outlet, for example, will not result in direct competition with the hotel’s existing in-house food and beverage services; rather, the alliance should complement the hotel’s established amenities. Other challenges include, but are not limited to: negotiating monetary commitment and initial investment fees between the two parties; the fear of losing brand reputation and recognition or of experiencing a decrease in quality levels during the term of the alliance; and the concern of partnering with the wrong brand. Many instances of unsuccessful partnerships have been the result of miscommunication between the partners.

Source:
http://www.hotelnewsresource.com/article8736.html


best of luck,

- Steve
 
Posted by: eugene Accepted Answer
11/3/2004 4:33 AM (CST)
Neeraj,

Co-brands have many wonderful benefits but not without it's fair share of problems.

I suppose one of the main challenges for a co-brand is finding the right partner. Having a strong partner is good but a partner that is too strong might dilute your brand. On the other hand, a weak partner might pull you down.

As what Steve said, partners must be complimentary, not conflicting. For example, a bookstore chain might work well with a coffee chain.

One of the things that i've seen through my experience that causes a co-brand to fail is lack of communication and activity. A lot of co-brands create a lot of hype but is not carried through, hence the excitement dies and the end result? Yes, you've guessed it. A natural death.

It must also be something that offers relevant benefits to consumers, not just a me too benefit that does not stand out from the crowd.

Hope this helps.


Cheers.
 
Posted by: jose04 Accepted Answer
11/7/2004 2:26 PM (CST)
Hello Neeraj

Conservativism is an expression of a lack of trust in a partner. Strategic alliances solve the problem of the burden of totally trusting the new partner.

Co-branding to work perfectly requires total trust and synergy between the partners. Working together is the only way to achieve a synergy. Bullheadedness and lack of humanism usually results in the 'locked in' effect making both the partners lose the race.

Co-branding efforts usually fail due to shelving either conservatism or liberal thoughts too fast. Not everybody turns out to be a CEO or a leader. Co-branding to succeed requires that the key stakeholders, (like the employees) of the firm, are taken care of.

There are more sensational success stories of co-branding, than the failures which i could offer. For example, the HDFC Bank, India has joined hands with the National Insurance Company (NIC) and MasterCard International to launch a successful Credit / Health Card.
Other examples in India involve rediff.com, bazee.com, satyam infoway etc.

Hope these thoughts help!!
 
Posted by: jillm Accepted Answer
11/11/2004 5:02 PM (CST)
One big one comes to mind: Martha Stewart Living & K-Mart. One brand came to rely on the other for support, business revenue, etc. And when that big brand (Martha herself, actually) became tainted, the whole house of cards began to fall.

Good luck on your assignment!

- Jill
 
Posted by: Val (Moderator)* Moderator Response
11/12/2004 7:23 PM (CST)
Hello all. I am closing this question since it's more than 10 days old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

Thanks, so much, for participating!

Val (Moderator)
 


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