Brand Alliance

WHAT, WHICH, WHERE?

Alliance
Alliances provide organizations with access to assets they dont have or
dont want to own directly.
Physical (products, people, capital)
Identity (brand, reputation, association,)
Intellectual (knowledge, processes,)

Company Value Chain

The Concept of a
Company Value Chain
The value chain contains two types of activities

Primary activities
most of the value is created
physical creation, sale and transfer to the buyer, after sales
services/assistance

Support activities
facilitate performance of the primary activities
support the primary activities and each other

The Concept of a
Company Value Chain
Primary activities
Inbound logistics- receiving, storing and disseminating inputs.
Material handling, warehousing, inventory control, scheduling.
Operations- Activities involve transferring inputs into outputs.
Machining, assembly, packaging, equipment, maintenance, testing,
printing, facility operations.
Outbound logistics- collecting, storing, physically distributing the
product to buyers, finished goods warehousing, material handling,
delivery vehicle operations, order processing, scheduling
Marketing- advertising, promotion, sales force, channel selection,
pricing, channel relation
Service- installation, repair, training, parts supply, product
adjustments. It enhances or maintain the value of product.

The Concept of a
Company Value Chain
Support activities
Procurement process employed, technology used, procedure for
dealing vendors, qualification rules, information system.
Technological development- know how, procedures, technology
embodied in processing equipments, telecommunication, order
entry system, servicing procedures.
HRM - recruiting, hiring, training, development, compensation
General administration/Firm infrastructure- general management,
planning, finance, accounting, legal, government affairs, and quality
management.
Infrastructure supports the entire value chain.

Cross Value Chain Examples

Secondary Associations

BRAND BUILDING TOOLS

AND ACTIVITIES

CBBE: BRAND
KNOWEDLGE

BRANDING
BENEFITS

Choosing Brand Elements

Brand name
Logo
Symbol
Character
Packaging
Slogan

Memorability
Meaningfulness
Appeal
Transferability
Adaptability
Protectability

Brand Awareness
Depth

Recall
Recognition

Breadth

Purchase
Consumption

Tangible and intangible benefits

Value perceptions
Integratepush and pull
Mix and match options

Leverage of Secondary Associations

Company
Country of origin
Channel of distribution
Other brands
Endorsor
Event

Awareness
Meaningfulness
Transferability

Greater loyalty
Less vulnerability to competitive
marketing actions and crises
Larger margins
More elastic response to price
decreases

Developing Marketing Programs

Product
Price
Distribution channels
Communications

Possible Outcomes

More inelastic response to price

increases
Brand Associations
Strong

Relevance
Consistency

Favorable

Desirable
Deliverable

Unique

Point-of-parity
Point-of-difference

Greater trade cooperation and

support
Increased marketing communication
efficiency and effectiveness
Possible licensing opportunities
More favorable brand extension
evaluations

Leveraging Secondary Associations

Company (through branding strategies)

Country of origin (through identification of product origin)

Channels of distribution (through channels strategy)

Other brands (through co-branding)

Special case of co-branding is ingredient branding

Characters (through licensing)

Celebrity spokesperson (through endorsement advertising)

Events (through sponsorship)

Other third-party sources (through awards and reviews)

Company

Ingredients
Alliances

Other
Brands

Extensions

Events
Causes

Employees
Things

Brand

People
Endorsers

3rd Party
Endorsements
Places
Country of Origin

Channels

Leveraging Secondary Associations

Creation of new brand associations
Effects on existing brand knowledge
Awareness and knowledge of the entity
Meaningfulness of the knowledge of the entity
Transferability of the knowledge of the entity

Leveraging Secondary Associations

These secondary associations may lead to a transfer of:
Response-type associations
Judgments (especially credibility)

Meaning-type associations
Product or service performance
Product or service imagery

How to Look for an Alliance

Partner

Four Cs Framework - Brand

Alliance
Complementarity:
Issue:
Do the potential partners offer complementary resources?
Your Strategy:
How did you search for complementary resources (Search pattern &
questions to ask)?
Suggestion:
Systematic search for complementarities

Four Cs Framework - Brand

Alliance
Congruent goals:
Issue:
Do the potential partners have common goals for the venture?
Your Strategy:

What trading hazards/barriers concerned you? How did you adapt?

How did you price resources?

What determined bargaining power?

Suggestions

Must understand partners motivation/needs

Power is derived from resource differentials

BATNA: Be ready to walk (know alternatives)

Monitoring/Incentives: Verify partners using external information & repeated

transactions

Four Cs Framework - Brand

Alliance
Compatibility:
Issue:
Are the firms compatible in terms of culture & organization?
Your Strategy:
Were some teams harder or easier to communicate with? Why?
Suggestions:
Asymmetric transferability: Knowledge/ technology can be easy
or hard to transfer

Four Cs Framework - Brand

Alliance
Change:
How did the factors above shift over time?
How will the other three Cs change over the course of an alliance?
Resources gain/lose value over time

Thats All!!