Friday, November 9, 2007
Retailers prefer to co-brand with FMCG companies
A recent study by Johan Schwartz found that South African retailers prefer to co-brand with FMCG companies. Retail brand managers were asked to indicate the sector which they prefer to co-brand with. The options (sector) given were financial institutions, e-companies, ticketing companies and communication companies (cell phone etc.). More than 60% of the respondents indicated that they prefered to co-brand with FMCG companies. The definitions of co-branding can be described as follows. Co-branding occurs when two or more existing brands are combined into a new joint product or are marketed together in the same fashions. Co-branding also involves two or more firms that associate their brands together to create superior market offerings, or to engage in effective strategic or tactical brand building programs.