08-09-2014, 04:17 PM
A manufacturer has four sponsorship options:
1). A manufacturer’s brand (or national brand) is a brand created and owned by the
producer of a product or service (Examples include IBM and Kellogg).
2). A private brand (or middleman, distributor, or store brand) is a brand created and
owned by a reseller of a product or service.
3). A licensed brand (a company sells it’s output under another brand name).
4). Co-branding occurs when two companies go together and manufacture one product
(General Mills and Hershey’s make Reese’s’ Peanut Butter Puffs cereal).
Combined brands create broader customer appeal and greater brand equity.
It may allow a company to expand its existing brand into a category it might otherwise have
difficulty entering alone. But at the same time there are certain disadvantages of combine branding
like:
?? Complex legal contracts and licenses are involved.
?? Coordination efforts are often difficult.
?? Trust is essential between partners. It is often hard to come by.
1). A manufacturer’s brand (or national brand) is a brand created and owned by the
producer of a product or service (Examples include IBM and Kellogg).
2). A private brand (or middleman, distributor, or store brand) is a brand created and
owned by a reseller of a product or service.
3). A licensed brand (a company sells it’s output under another brand name).
4). Co-branding occurs when two companies go together and manufacture one product
(General Mills and Hershey’s make Reese’s’ Peanut Butter Puffs cereal).
Combined brands create broader customer appeal and greater brand equity.
It may allow a company to expand its existing brand into a category it might otherwise have
difficulty entering alone. But at the same time there are certain disadvantages of combine branding
like:
?? Complex legal contracts and licenses are involved.
?? Coordination efforts are often difficult.
?? Trust is essential between partners. It is often hard to come by.