co-branding Parallel co-branding is the marketing strategy where multiple brands come together and create a combined brand. Ingredient co-branding Ingredient co-branding is a marketing strategy carried out by a supplier where an ingredient of a product chooses to position its brand. Advantages of product-based co-branding Value addition and differentiation Access to new customers Better integrated communication Positioning Reduction of product introduction cost Disadvantages of product-based co-branding Loss of control Poor performance of co-brand Communications-based co-branding Communications-based co-branding is a marketing strategy that involves linking of multiple brands from different companies in order to jointly communicate and promote their brands. Advantages of communication-based co-branding Endorsement opportunities Sharing advertising costs Resource sharing Enhances awareness Disadvantages of communication-based co-branding Difference of opinion Negative co-brand image Poor performance of co-brand Intent According to Chang, from the Journal of American Academy of Business, Cambridge, there are three levels of co-branding: market share, brand extension, and global branding. Level 1 includes joining with another company to penetrate the market. Level 2 is working to extend the brand based on the company's current market share. Level 3 tries to achieve a global strategy by combining the two brands. Forms of co-branding There are many different subsections of co-branding. Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once. The forms of co-branding include: ingredient co-branding, same-company co-branding, national to locally co-branding, joint venture co-branding, and multiple sponsor co-branding. No matter which form a company chooses to use, the purpose is to respond to the changing marketplace, build one’s own core competencies, and work to increase product revenues. One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products. Examples: Betty Crocker’s brownie mix includes Hershey’s Chocolate Syrup Pillsbury Brownies with Nestlé Chocolate Dell Computers with Intel Processors Kellogg Pop-tarts with Smucker’s fruit Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously. Examples Kraft Lunchables and Oscar Mayer meats Courtyard by Marriott, a hotel brand (Courtyard) operating under Marriott International's signature brand (Marriott) National to local co-branding occurs when a local small business teams up with a national brand or network to target local audiences and interests. Examples: Visa co-branding credit cards with