Co-Branding

Co-branding involves combining two or more brands into a single product or service. Companies engage in co-branding to leverage strong brand. It is becoming a popular business practice to strive for a positive association between different brands that can develop synergy. A well executed co-branding strategy can lead to win-win situation for both co-brand partners and can help in realizing unexplored markets or untapped opportunities. Concisely, it is instrumental to handle almost every marketing matter from creating initial awareness to building customer loyalty.

Companies form co-branding alliance to fulfill following goals:

► Expanding customer base

► To make financial benefits

► Respond to the expressed and latent needs of customers

► To strengthen its competitive position

► Introduce a new product with a strong image

► Creating a new customer perceived value

► To gain operational benefits

Co-branding is a frequently practised in fashion and apparel industry. Some of the examples of co-branding are between Nike – Phillips (Electronics Manufacturer) and Adidas -Porsche (car manufacturer). Co-branding can be used for promotion campaigns, to use cartoons on t-shirts, for using logos, distributing through branded retailer etc.

Co-branding Agreements

In a co-branding alliance, both companies should have a relationship that has potential to be commercially beneficial to both parties.

Co-branding agreement includes rights, obligations and restrictions that are binding on both the parties. It includes important provisions and needs to be carefully drafted to give clear guidelines to the parities involved.

Agreement also explains about marketing strategy, brand specifications, confidentiality issues, licensing specifications, warranties, payments and royalties, indemnification, disclaimers, term and termination. Person involved in campaign must be very clear about these issues.

Co-branding can take following forms:

Promotion

Promotional co-branding is the most common type of co-branding practiced by companies. Co- branding starts with endorsements with celebrities and institutions. It can enhance brand image. Sponsorship can provide with ample opportunities.

Agreement with Supplier

Alliance with suppliers gives easy access to offerings and long lasting relationships which leads to low level of investment. Distinctiveness is very important for such co-branding which is possible through patent protection.

Agreement with Value Chain members

It aims to give customers altogether new experience and enhance customer value. In value chain co-branding, members in a distribution channel both horizontally and vertically linked form alliance. Such co-branding can be between supplier-retailer, companies offering similar product or service or between product and service provider.

Innovation

This approach offer opportunity of growth in existing market and exploring new markets. In such alliance companies come together to create new offerings for customers. Risk and return are two important aspects which need to be considered. Top level management co-operation and organizational collaboration is essential for a successful agreement.

Benefits of Co-branding

► Increased sales revenue.

► Exploring new markets with minimum expenditure.

► Appropriate approach when company seeks quicker response.

► Access to new source of financing.

► Technological collaboration between two companies give better results than what could be achieved by single company’s efforts.

► Royalty income.

► Sharing of risk.

► Companies can fetch higher price for value added by additional brands associated with it.

► Improved product image and credibility with another brand association.

► Increased customer confidence on product.

► Increased coverage and exposure from joint advertising.

► Prospects to develop working relationships leading to future joint undertakings

Problems with Co-branding

► Proper understanding between co-brand partners is must. Greed to fetch too much in short time may spoil the relations and even result in failure.

► Once a co-brand take position in market, it becomes difficult to dismantle co-brand and even more difficult to reestablish the brand alone.

► Companies having different visions and culture are in-compatible for co-branding.

► If brand don’t possess sufficient credibility in market, it can negatively affect the other partner’s brand.

► Repositioning of brand by one party may adversely influence the other party’s brand or campaign.

► When two products are totally different and have different set of customers, co-branding may not work.

► Inability to meet the requirements of other party may result in termination of co-branding agreement.

► Legal requirements.

► Mergers and takeovers of one party may prove detrimental to other party.

► Future environmental changes like political, legal, social, and technological or changes in consumer preferences may give unexpected outcomes.

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The Law of Averages in Network Marketing

The law of averages is a common term used to express the theory that eventually, everything evens out. If the law of averages is true, then, theoretically, you should have the same amount of good and bad luck. Indeed, this law of averages is not an average law, being far more powerful than, say, the law of wasting assets: even, the path of physics that science finds itself treading is nothing compared to it.

Marketing

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Fertilizer Industry in India Contributes 25 Percent to GDP

India is basically an agricultural country which economy depends largely upon its agrarian produce. Agricultural sphere contributes about 25% to the country’s GDP. As a result, Indian fertilizer industry has tremendous scope in and outside the country as it is one of the allied parts of agriculture.

Today, Indian Fertilizer Industry is developing in terms of technology. Indian manufacturers are adopting advanced manufacturing processes to prepare innovative new products for Indian agriculture. India has entitled as the third largest producer and exporter of nitrogenous fertilizer.

Growth of Fertilizer Industry in India

Fertilizer industry in India is meeting all the requirements of agricultural industry since the time of its inception in 1906. The first plant for fertilizers manufacture was set up in the same year in Ranipet, Chennai. Then established the first two large-sized fertilizer plants, one was the Fertilizer & Chemicals Tranvancore of India Ltd. (FACT) in Cochin, Kerala, and the another one was Fertilizers Corporation of India (FCI) in Sindri, Bihar. These two were established as pedestal fertilizer units to have self sufficiency in the production of foodgrains. Afterwards, the industry gained impetus in its growth due to green revolution in late sixties, followed by seventies and eighties when fertilizer industry witnessed an incredible boom in the fertilizer production.

The tremendous demand of fertilizers has led the country to invest huge in the public, co-operative and in private sectors. At present, India has more than 57 large sized plants of fertilizers, manufacturing wide assortment of fertilizers including nitrogenous, phosphatic, Ammonium Sulphate (AS), Calcium Ammonium Nitrate (CAN) urea, DAP and complex fertilizers. Apart from it, there are other 64 small and medium scale Indian manufacturers producing fertilizers.

Here is the list of some public sector Indian fertilizer industries;

– Madras Fertilizers Limited

– National Fertilizers Limited

– Hindustan Fertilizer Corporation Limited

– Steel Authority Of India Limited

– Fertilizers & Chemicals Travancore Limited

– Rashtriya Chemicals &Fertilizers Limited

– Paradeep Phosphates Limited

– Pyrites, Phosphates & Chemicals Limited

– Neyveli Lignite Corporation Limited

Some of the major private sector fertilizer companies in India are:

– Balaji Fertilizers Private Limited

– Ajay Farm-Chem Private Limited

– Chambal Fertilizers & Chemicals Limited

– Bharat Fertilizer Industries Limited

– Gujarat Narmada Valley Fertilizer Co. Limited

– Southern PetroChemical Industries Corporation Limited

– Godavari Fertilizers & Chemical Limited

– Shri Amba Fertilizers (I) Private Limited

– Gujarat State Fertilizers & Chemicals Limited

– Maharashtra Agro Industrial Development Corporation

– Mangalore Chemicals & Fertilizers Limited

The speedy growth in the fertilizers production is swaying the Indian manufacturers to transform into Indian exporters, and helping them create a long lasting impression on global consumers.