A critical analysis of the appropriate co-branding factors in the South African retail industry : a management perspective

Schwartz, Johan (2007-12)

Thesis (MBA)--Stellenbosch University, 2007.

Thesis

ENGLISH ABSTRACT: In the past decade, through the study of business acquisitions and through empirical research it has become evident that brands are amongst the most important assets of a company. Brands are the core of the consumer-driven economy and companies' sustainable business future is dependent on the success of their brands. Brands enable companies to establish and differentiate their company and its products. Additionally, brands provide the base or launching pad for new products and new business ventures. Brand leverage strategies are described as strategies that use established brands to influence the perceptions of new products. These brand leverage strategies include line extensions, vertical extensions, brand extensions and co-branding. Co-branding as a brand leverage strategy is investigated in this study. This study investigates the perceptions of brand practitioners towards co-branding within the retail industry of South Africa and identifies key aspects of co-branding strategies. The key factors in co-branding strategies are: the perceived fit (compatibility) between the brands; the different fOiTIls of co-branding; the considerations when choosing a partner and the general reasons for pursuing a co-branding strategy. This empirical study examines these key factors and conclusions are drawn from the data obtained. Data for this study was gathered by means of a questionnaire which was sent to retail branding practitioners. Subsequent to analysing the data conclusions were drawn with regards to the appropriate co-branding factors. The research results indicate that branding practitioners believe that the fit between two brands is an important consideration when evaluating co-branding strategies. Results also indicated that the fit between brand images is deemed to be a more important consideration than the fit of operational aspects when brand managers consider a co-branding strategy. Sales improvement and reaching out to new segments of the market are deemed to be appropriate reasons why retail brand practitioners pursue co-branding strategies. In comparison with improvement of sales, the improvement of brand image is deemed to be a less important reason for pursuing a co-branding strategy. Results further conclude that joint marketing is the preferred co-branding Conn and that retail managers prefer co-branding with companies in the FMCG sector. Results also suggest that retail brand practitioners place the biggest emphasis on the possibility of sales improvement when evaluating potential co-branding partners. Co-branding is deemed to be a viable alternative brand leverage strategy for retail brand managers. This study highlights the different aspects and considerations that brand mangers take into account when evaluating a possible co-branding strategy.

AFRIKAANSE OPSOMMING: In die afgelope dekade het die bestudering van besigheidswerwings (business acquisitions) en empiriese navorsing daarop gedui dat handelsmerke een van die belangrikste bates van ondememings is. Handelsmerke is die kern van die verbruiker gedrewe ekonomie en die volhoubare besigheids toekoms van maatskappye is afhanklik van die sukses van hierdie handelsmerke. Handelsmerke stel ondememings in staat om huI besigheid en hul produkte te vestig en te differensieer. Handelmerke dien ook as 'n basis vir die ontwikkeling van nuwe produkte en nuwe besigheidsgeleenthede. Handelsmerk hefboom (brand leverage) strategiee word beskryf as strategiee wat gevestigde handelmerke gebruik om die persepsies oor nuwe produkte te beinvloed. Hierdie handelsmerk hefboom (brand leverage) strategiee sluit lyn-uitbreiding, vertikale uitbreiding, handelsmerk uitbreiding en medehandelsmerking (co-branding) in. Hierdie studie ondersoek mede-handelsmerking as 'n handelsmerk hefboom strategie. Hierdie studie ondersoek die persepsies van handelsmerkingpraktisyns binne die Suid Afrikaanse kleinhandel industrie. Die persepsies van handelsmerkingpraktisyns teenoor mede-handelsmerking word ondersoek om die kern aspekte van medehandelsmerking strategiee te identifiseer. Die kern aspekte van mede-handelsmerking strategiee (co-branding strategies) is die waarneembare passing (fit) tussen handelsmerke, die verskillende medehandelsmerkingvorms, die oorwegende faktore tydens die keuse van 'n medehandelsmerksvennoot en die algemene redes vir die nastrewing van 'n medehandelsmerking strategie. Data vir hierdie navorsing is ingesamel deur middel van 'n vraelys wat aan kleinhandel handelsmerkpraktisyns (brand practitioners) gestuur is. Na die analise van die data is bepaalde gevolgtrekkings oor die toepaslike mede-handelsmerkfaktore gemaak. Die navorsings-resultate dui aan dat handelsmerkpraktisyns glo dat die passing (fit) tussen twee handeIsmerke 'n belangrike oorweging is wanneer mede-handelsmerking strategiee oorweeg word. Resultate dui ook aan dat die passing (fit) van die handelmerk beelde 'n belangriker oorweging is as die passing van operasionele aspekte. Verbetering in verkope en die uitreik na nuwe segmente in die mark word beskou as die geskikte redes waarom handelsmerkpraktisyns mede-handelsmerking strategiee volg. Wanneer mede-handelsmerking strategiee gevolg word, word die verbetering in verkope as 'n belangriker rede as die verbetering van die handelmerk beeld beskou. Resultate wys ook dat gesamentIike bemarking (joint marketing) die voorkeur medehandeismerkingvorm is. Die studie kom ook tot die gevolgtrekking dat maatskappye in die VBVG (Vinnig bewegende verbruikers goedere) sektor die voorkeur sektor is waarmee kleinhandelaars wil saamwerk. Resultate dui ook aan dat kleinhandel handelsmerkpraktisyns (brand practitioners) die grootste klem plaas op die moontlikheid van verkope toename wanneer potensieIe medehandelsmerkingsvennote oorweeg word. Mede-handelsmerking word beskou as 'n lewensvatbare altematiewe handelsmerk hefboom strategie (brand leverage strategy) vir kleinhandel handelsmerk bestuurders Hiedie studie bring na vore die verskillende aspekte en oorwegings wat handelsmerk bestuurders in ag neem wanneer moontlike mede-handelsmerking strategiee ontleed word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49205
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