Advice You - Business

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 exec

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

uted 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 loyalt

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

.

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

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

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 Manufact

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

rer) 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 ha

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

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.

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

greement 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-bran

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ding 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.

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

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

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

embers
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 simi

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ar 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 as

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ects 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.
► Appropr

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ate 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.
►

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

haring 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 c

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

overage 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 r

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

lations 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.<

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

r> ► 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

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ave 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 othe

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

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

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elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

rce”. Also, you have to make it hyperlinked to our site. To read more articles on Textile, Fashion, Apparel, Technology, Retail and General please visit www.fibre2fashion.com/industry-article.

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tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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