Co-branding: challenges and opportunities in international marketing

Co- chumping challenges and opportunities in transnational sellingStrategic adhesions Created by engaging companies and brands in co-stigmatisation is gaining popularity across different industry. Disneys alliances with Mattel, McDonalds and Burger queer be prime examples of much(prenominal) co-branding ventures.Co-branding is the strategy of pre directing devil or much independent brands jointly on the same harvest-tide or function. (Erevelles et al., 2007)In co-branding- too called dual branding or brand bundling- twain or more than(prenominal) well k right a managementn brands ar feature into a joint product or food marketed together in some fashion. (Kotler keller, 2009)Co-branding as a underframe of cooperation between two or more brands with signifi back endt customer recognition, in which all the participants brand names be retained (B pretermitett and Boad, 2002)Co-stigmatisationIt is a win-win site where two parties indulged in this process and it is h elpful for them to incr eternal sleep the value a brand hold. Sometimes in worse scenarios, it might skunk accidental injury ane among them which is usually the stronger brand effected by the separate brand. This work ups selecting the pardner brand the al almost important agentive role which fits with the conjunctions value, image and product.The presentation speaks intimately the major objectives to why to go under co-branding and their shared values as to how they are created and relate to other brands. Internationally the co-branding arse provide natural product integration or complimentary impost and image. Co-branding is been practiced in almost every kind of big and sharp industry. Be it FMCG industry, trip out Industry, Fashion Industry e.g. The outputs from co-branding are usually more than perceive or judge. Because brand names are valuable assets, they may be combined with other brand names to form a synergistic alliance in which the sum is greater than t he parts (Washburn.J.H Till.B.D Priluck.Randi, 2000). Grabbing the opportunity is the second most important aspect. To be at the correct place at the right gives you an edge everywhere others.The presentation reveals Joint Ventures as a co-branding which conflicts the mind. other conflict among the presentation was to name celebrity warrant as co-branding. Celebrities are brands in themselves or not. There are debates going on at global stage that is it a part of co-branding, acquisition and celebrity endorsement actually. It is a widely used caper strategy in industries like food and drinks, retailing, air travel and financial service, with the emergence of firms using it outgrowth by forty percent/year (Blackett and Boad, 1999). Co-branding can be specify as several brands collaborating in engineering science diement, merchandising, or production trance keeping their independence as separate stemma entities (Stewart, 1995. trade in the raws program 29(4), 5). Co- branding is increasingly becoming a popular strategy in the hospitality industry. In general, co-branding cards can be an effective selling neb that helps family restaurants to build both behavioral and attitudinal customer loyalty. Co-Branding InternationallyGlobalization has accelerated, so has the choice of brands, both everywhereseas and home(prenominal) (Hsieh, 2002). A brand has been specify as an placeable product, service, person or place augmented in such a way that the buyer or substance abuser perceives applicable unique values which match their needs most closely (de Chernatony, 1998, 3). The associated incremental value added to the product by virtue of its brand has been referred to as its brand equity (Aaker, 1991 Keller, 1993). In todays competitive battleground, the concept of brand equity has turn up to be an important source of strategic insight for marketers (Moore, Wilkie and Lutz, 2002, 17).City BrandingCity branding is a quickly growing concept. Thi s practice is adopted by umteen cities build up urban competition for vigorous resources, markets, opportunities and attention across the globe. Crucial strategy within city branding is the creation of the citys identity, which should be developed from a range of contextual variables such as history, demography, economy, politics and policies. A city usually has certain identifiable images or core values perceived by its people. For example, Paris is perceived for romance, Milan for style, New York for diversity and dynamics, Washington for power, and Tokyo for modernity. (L. Zhang, S.X. Zhao / Cities 26 (2009)). Branding Beijing, the neat of China for the Olympics 2008. Branding London, the capital of United Kingdom for the Olympics 2012. umteen of the astronomic and low-pitched companies go forth be officially involved in some(prenominal) of the activities. Like McDonalds is been named as the official restaurant for the Olympics 2012 in London. Around 7,000 count on con tracts are expected to generate huge profits and nigh 75,000 opportunities.Co-Branding across the husbandryCulture also has a great influence on buying behaviors. Co-branding is a popular technique used in domestic markets to absent the positive associations of the associate brands to a raw(a)ly formed co-brand (Linda C. Ueltsch, 200) all culture has their own effects. Taking an example of Pakistan and India, they share similar culture across the border. And a company like Pepsi came up with an ad featuring celebrities from both sides. And launching the advertisement in both countries.ExamplesIn the photocopy market, many products sold by, say, Canon are actually make by Ricoh.In the car industry, although BMW own the rover company, at the product level spider cars show no BMW logo or connection. Mercedes and Swatch launched innovative car named smart as a result of joint venture. Mercedes is unlikely to put its denounce on the smart Because of the threat.In the Tea market, Ne stle and coca poop launched a product Nestea against Unilevers range. Nestle create the product while, and Coca sess market and distri just nowed it. inquiry has shown that customer evaluations of co-brands are affected by the head to which the skills and resources of the parent brands are perceived to fit with or generalize to the young co-brand (Klink and Smith, 2001). The theoretical foundations in the cognitive psychology literature suggest that similitude between a brand and an extension or alliance facilitates the transfer of experience, attitude and purchase intention (Martin and Stewart, 2001).Even a well phrased co-branding musical arrangement cannot promise success of an poorly picturized co-branding strategy. Co-branding is not al slipway a mulish option for all products or services. co-branding done without proper look and readiness may cause more damage. Thats why co-branding strategy must be carefully thought out and is usually successful when symbiotic or sy nergistic brands and goods are combined through an effective marketing plan.The international marketing of alert services industrious merchandiseThe presentation highlights the rapidly shifting trends of engineering. And gaining popularity among the new generation. The shift from carnal to internet and recently from estimators to wandering. Mobile info services are the convergence of planetary communication technologies providing entropy services. Explaining and elaborating various categories of diligent data services available to the public.The demand for agile eddys equipment such as cell phones, PDAs, and digital music players that are typically used on an anytime, anywhere basis without cosmos connected by wires and services that use these brisk gimmicks (mobile services) is growing rapidly worldwide. (Shankar, V. Balasubramanian, S. (2009)).What is Mobile Marketing?The mobile channel is a multi-faceted interactional network for delivering individual communicati on, personalization, info and entertainment products and services. (Manis, 2005 Becker 2005 Bragge et al. 2005 Dickinger et al. 2004 Nysveen et al. 2005).A set of practices that enables organizations to elapse and ensnarl with their hearing in an interactive and relevant manner through any mobile construction or network (Mobile Marketing Association, 2009).Mobile information Services fuse handheld and internet technologies to create new value prepositions (Keen and Mackenzie, 2001, quoted from Gilbert, 2003).According to Informa Telecoms Media, a research conducted in April 2006, there were 215 one thousand thousand mobiles subscribers in 1997. There are around 2 billion mobile users in 2005. And this count is expected to reach 3 billion in 2010.The emergence of mobile barterThe number of mobile phone users worldwide has increased rapidly over the last five years from an estimated 1.87 billion in 2004 to 2.5 billion in September 2006 (InfoSync do principal(prenominal), 200 4 Usability News, 2006). In Japan, already seven out of 10 people ca-ca cell-phone accounts, and in countries such as Italy, Norway, Sweden and the United Kingdom, the market shrewdness of mobile phones has already exceeded 100% (Sultan and Rohm, 2005). Undoubtedly the mobile phone has been one of the fastest adopted consumer products of all time (Kalakota and Robinson, 2002 Scornavacca et al., 2006). In addition, according to Forrester research (2005), some 90 per cent of all phones in use will be mobile Internet-capable this year. The proliferation of Internet-enabled mobile devices has created an extraordinary opportunity for e-commerce to leverage the wins of mobility (Barnes and Huff, 2003 Clarke, 2001 Durlacher Research, 2002). The conduit for this is mobile e-commerce, comm nevertheless known as m-commerce, which refers to the ability to conduct financial transactions (including, but not exclusively, the ability to purchase goods or services) through a wireless Internet- enabled device (Barnes, 2002a Scornavacca and Barnes, 2006).Integration with Marketing MixIntegration with Marketing Mix is the key to success. It Deliver consistent brand value/image. And gives a fresh element on companies promotion mix. According to mobile data association in UK, almost 94% of SMS received are read. And around 36% users admit that they are likely to purchase products. (Karjaluoto et al. 2004)Complexity of the technology enables to acquire the mobile data services by users. New scholarship methods alter consumers to bridge the gap between the advanced technology and user interface. Solving the problems and adding value in everyday life.Opportunities ThreatsUntapped Customer Segments. maturement Popularity of Wireless Broadband.Limited Use of PC-Based Internet Services (3rd screen) are the key opportunities for the mobile marketing. There are many threats attached to it too. Regulatory Interference can be a hurdle. Continued Pressure on Revenue as it is a long t ime process. Cost of New Investments Eroding Data Services Profitability and Competition From Carriers and other Service Providers.PortabilityAn important benefit of a mobile device to consumers is its ultra small size and the ease with which it can be carried (Balasubramanian et al. 2002). A mobile device is not only portable, but because it fits in a hand, it is a constant companion to the user and is used on a continuous basis. This property makes it easier for marketers to quickly communicate with the user at any point in time, but the small screen size does not allow information-intensive messages to be delivered.Post-purchase behaviorResearch shows that after controlling for selection, online customers are more loyal than offline customers, so migrating customers from offline to online could call down customer loyalty (Shankar, Smith, and Rangaswamy 2003)Acceptance of Mobile MarketingAcceptance of mobile marketing across two global markets. Drawing upon technology credenza and uses and gratifications theories, we develop and estimate a conceptual model of the influences of antecedent factors (including insecurity acceptance colligate to the mobile platform and personal attachment related to mobile devices) on behavioral intent related to mobile marketing practice. We further propose that the above relationships are mediated by activities that consumers engage in such as downloading, forwarding content and registering with firms. Focusing on youth consumers, we empirically test the model using data stack away in both an established (U.S.) and an emerging market (Pakistan). Findings across these two markets reflect cross-market similarities and differences related to consumer acceptance factors. (F. Sultan et al.(2009))Mobile marketing researchMobile marketing is a new technology. This is successful because it is a two way communication unlikely to the traditional research process. It involves active audience which is interactive, not passive. And re searches gets a rapid feedback.In many countries, social, cultural and political issues are discussed with the general population. Like in India, IDEA mobile company launched and advertisement showing the use of polling through mobile where the youth can express their own views to government.Short Messaging ServicesInnovation creates marketing opportunities and challenges. Mobile media, for example, transcend traditional communication and harbour one-toone, many-to-many and mass communication. The most popular mobile application, referred to as text messaging in the UK or Short Message Service (SMS) in most other countries, attracted 580 million users who sent 431 billion messages in 2002. In the first quarter of 2004 users sent 135 billion SMS messages and predictions are that 94.9 million mobile commerce users in 2003 will grow to 1.67 billion users by 2008. SMS will account for the great deal of mobile telephone companys revenues from data services until 2006. This high diffusi on of SMS facilitates analyzing usage behavior and hints at the commercial potential of future communication services. multimedia system Messaging Services (MMS), for example, will build on the success of SMS but allow for richer content based on similar asynchronous, digital and interactive communication. (A. Scharl et al. (2005))Mobile shoppingIn interviews with more than 100 Japanese and foreign firms between 2000 and 2005, the author investigated the stupor of a number of technical trajectories on mobile shopping applications that are suggested to be promising ones based on the behavior of lead users. Push-based Internet mail and other key services that are not yet available inWestern markets were the initial drivers of the market for mobile shopping in Japan between 2001 and 2003. Currently, the fastest growing market for mobile shopping in Japan involves the integration of mobile sites with other media such as magazines and radio and television programs where these other med ia compensate for the small screens of mobile phones. This paper forecasts the impact of improvements along a number of technological trajectories on the integration of mobile sites with other media. (J.L. Funk. (2007))A mobile device is not a standard personal computer. It is a frequently used, location-sensitive device with very limited visual space. A mobile message will be most effective if it is brief, memorable, and well-coordinated with time and the users location. The rapidly changing technology can be a flaw. Simply transporting a companys Internet marketing strategy to mobile marketing strategy could be a normal for failure.The impact of culture in international e-commerce.The InternetThe Internet (or World Wide Web) is a network of computers providing assenting to information from around the world. Many businesses and government agencies have set up Internet sites (websites) providing information on their business. (Department of Trade and economical Development)E-Comm erceE-Commerce (Electronic Commerce) is a form of business operation in which the parties interact over computer, mails over the Internet rather than by physical exchange or conduct. (Department of Trade and Economic Development)What is E-commerceV. Zwass 127, p. 3 defines e-commerce as the sharing of business information, maintaining business relationships, and conducting business transactions by means of telecommunications networks. Treese and Stewart 112, p. 5 define e-commerce as the use of the global Internet for purchase and sale of goods and services, including services and support after the sale. Kalakota and Whinston 61, p. 3 define e-commerce as the delivery of information, products/services, or payments via telephone lines, computer networks or any other means. They do not limit their coverage to just Internetbased means. Kauffman and Walden 67, p. 3 emphasize the Internet as a medium for enabling end-to-end business transactions. Their definition applies equally well in dotcom and Internet-only business settings, as well as more traditional business settings where the new channel of the Internet is being used alongside existing channels.The main business uses of the InternetE-commerce allows consumers and customers the ability to buy, sell and advertise products and/or services. It is a tool to interact businesses and customers around the globe. It is useful for companies to promote product and services through different means like brochures, manuals, product updates, and websites e.t.c.E-commerce arguably has a potential to add a higher value to businesses and consumers in ontogeny countries than in developed countries. Yet most create country-based enterprises have failed to draw in the benefits offered by modern information and communications technologiesBarriers to e-commerce in developing countriesEconomic and sociopolitical factors focus primarily on the environmental characteristics, the cognitive constituent reflects organizational an d individual behaviors. Arguably, for the initial adoption of e-commerce in developing countries, the cognitive component plays a more prominent role. As organizations assimilate sophisticated e-commerce practices, environmental factors play more critical rolesEconomic BarriersIn under-developing countries, lack of galvanizing supply is a big barrier for e-commerce as all the devices include in a transaction, runs on electricity. Lack of purchasing power is also one of the biggest. As people hardly have money to make their livings. Resulting in a low percentage of people having access to Internet. Manufacturing companies of randomness and Communication Technology products focus on large distributors often fit(p) in developed countries for achieving high sales and they dont focus to the under developing countries. This is another problem with the e-commerce industry. Credit cards is a key factor for completing the deals over internet for making the payments. In Asiatic Countries, 34-40% of the financial transactions are being made in form of cash. Other systems are underdeveloped such as online banking is not popular. (N. Kshetri, (2007))Socio-politic BarriersIn Asian countries, personal relationships are important in businesses while anonymous online relationships are considered as threaten established interpersonal networks. As well as people prefer to deal face-to-face are preferred over business deals made through e-mails and internet.Political factors are not implied and they lack law legislation and the electronic signatures.Cognitive barriers Cognitive barriers are more serious than other categories of barriers in developing countries. Consumers lack of awareness and knowledge of benefits involved in ecommerce and their lack of trust in service providers have also hold back the growth of e-commerce. Latin America, experience a low rate of credit card is an attributed to the lack of trust in than lack of access to the credit card system.E-commerce and mobileInternet has been spread out substantially by a new generation of mobile devices, coal scuttle the door for rapid growth of mobile-commerce. While the traditional PC access to the Internet continues to be vital for exploiting the advantages of the Internet, the mobile access appears to attract more people because of flexible accesses to the Internet in a ubiquitous manner. Accordingly, e-commerce is now in the process of being converted into m-commerce. The purpose of this paper is to develop and analyze a mathematical model for comparing e-commerce via the traditional PC access only with m-commerce which accommodates both the traditional PC access and the mobile access. The distribution of the number of products purchased by time and the distribution of the time infallible for selling K products are derived explicitly, enabling one to assess the impact of mobile devices on e-businesses. (U. Sumita, J. Yoshii, (2009))The global marketing use internet which enables firms to leap-frog the stuffy stages, as it removes all geographical constraints, permits the instant establishment of virtual branches throughout the world, and allows direct and immediate foreign market entry to the smallest of businesses (Bennett, 1997, p. 327).The Internet is creating a unique global marketplace that has the potential to change profoundly the way international business is conceptualised and configured (Srirojanant and Thirkell, 1999 Bennett, 1997 Kedia and Harveston, 1999). The rapid commercialization of the Internet calls into school principal many of the fundamental tenets of international business (Hamill and Gregory, 1997, p. 9).DEVELOPING INTERNET E-COMMERCE BENCHMARKS benchmark is a standard for measuring and comparing the performance of like systems. For new product makers, a benchmark can provide important statistical information so products can be tine-tuned before their deployment. For end users, on the other hand, a benchmark can be used to equation the st rengths and weaknesses of different products so that an informed decision can be made about system adoption. Benchmarks aid in estimations of scalability in terms of the number of users and/or transactions that a system can support, and system reply times under various loads and hardware/software deployment platforms. inescapably of small to medium enterprises (SMEs) and big business and we motivate the need for a benchmark suite for e-commerce. (DAWN JUTLA et 1999)The Internet has altered international business development. The ways in which e-commerce continue to evolve. It makes sure that any statute changes they make can deal with future developments, even if these appear somewhat nebulous at present. It really depends on ones stand point as to whether e-commerce is seen as being or producing something new, which requires separate tax regulations. In terms of theoretical considerations, the live situation must be regarded as unsatisfactory. (J.F.Hughes, K.Glaister (2001)