Brand alliance Essay

The desired outcome of a shuffling alliance is to increase each other disgraces equity. Some of the usages could be as follows twain companies jackpot their resources to co-brand, with the idea that the modern intersection point washbasin enjoy a unique positioning or two manufacturers pool resources to develop a promotional campaign featuring both brands. (Samu, Krishnan Smith, 1999, p. 57). In general, brand alliances carry along great benefits but at same date ome inevitable risk. Well-established alliance is a powerful tool that can religious service to promote, to specify, to enrich, and to increase the brand rate.Good example for increasing the brand value is brand alliance of PorscheDesign and Adidas, where PorscheDesign clearly raises the image of Adidas and on other good deal PorscheDesign has more presence and can sell its products in many another(prenominal) moneymaking(a) locations. (Adidas Annual report, 2009). station alliances are used at times of roa ringness as well as in times when the brand suffers they whitethorn serve as a driver for a brand to obtain its market position. Wrong arketing strategies can ruin the attractiveness and image of a brand and successful brand alliance can revitalize them. check to (Samu et al. , 1999, p. 57) A new brand might partner with an established brand to build a stronger presence for a specific usage juncture. If one of the brands has very good image and brand equity, it is likely that customers go away perceive the partner brand with similar attitude. This strategy is risky and can harm the stronger company. The risk factor can be lowered by extensive market analysis that can reveal some of the admonitory issues for the xact brand alliance. A common practice for possible alliance partners is universe of discourse of an exit strategy.That allows companies react quickly if some of the planned outcomes goes wrong or in other direction than planned. (Melvin Prince Mark Davies, 2002) Very c ommon precedent for creation of brand alliance is a launch of a new product. It serves as a great advertising tool because it drags attention. New product is associated with some extraordinary brand, which creates a message for consumers. A successful example of brand alliances to promote new product launch where two trong brands associate and which fashioned perfectly was Range Rover and Victoria Beckham.The outcome was the new shape line of Range Rover, Evoque. Targeted mainly at female customers, sales offset rose significantly after the introduction of Victoria Beckhams particular(a) luxury edition. Even though the actual limited edition was provoked only(prenominal) in small volumes, it created great deal of exclusivity for the new product. Associating the new sit with Victoria Backham and creating a well- managed advertising campaign led to a successful launch of the new model line crowned by many design awards. About Land Rover, 2012). . Analysis of Successful Factor s in Brand Alliance 3. 1 Successful Factors Before going deeply in the analysis, it is important to understand in theory the successful factors behind a brand alliance and their effects on consumer attitudes. while the effects they produce are the independent variables. While engaging in an alliance, it is fundamental for companies to work on the successful factors in order to produce and maintain the corroboratory effects while reducing the negative ones