Short answer

When developing new product strategies, explore partnerships with complementary brands, especially if one brand has lower market recognition, to leverage combined appeal and enhance overall consumer preference.

Field: Innovation & Markets
Source: ResearchSpace (University of KwaZulu-Natal) (2016)
Method: Experimental research
Sample: 331 participants
Evidence: Moderate effect

Pairing an established brand with a less recognized but complementary brand in a co-branded product can positively influence consumer perception and preference for both entities. This innovation & markets research insight is drawn from a 2016 study published in ResearchSpace (University of KwaZulu-Natal). Using Experimental research with 331 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When developing new product strategies, explore partnerships with complementary brands, especially if one brand has lower market recognition, to leverage combined appeal and enhance overall consumer preference.

Study

Innovation & MarketsHigh ImpactModerate effect

Co-branding with complementary, lesser-known brands can enhance overall brand preference.

Pairing an established brand with a less recognized but complementary brand in a co-branded product can positively influence consumer perception and preference for both entities.

ResearchSpace (University of KwaZulu-Natal) · 2016

Key Findings

01Co-branding can positively influence overall brand preference, even when one of the brands has low equity.
02The way co-brand concepts are presented and measured significantly impacts observed preferences.
03The equity level of the original brands influences the overall preference for the co-brand.
04Cause-related marketing can act as a modifying variable affecting co-brand preference.

Application

Design takeaway

How to apply

When launching a new product or seeking to revitalize an existing one, identify potential partner brands that offer complementary benefits and have a strong existing customer base, even if their overall brand recognition is lower.

Project actions

01When exploring co-branding, consider the perceived 'fit' between the brands.
02Think about how the visual identity of each brand will merge in the co-branded product.

Method & Evidence

AimTo investigate how consumers perceive and respond to co-branded products formed by complementary brands of varying equity levels, and to assess the impact on overall brand preference.

MethodExperimental research

ProcedureParticipants were presented with individual brands and co-branded product concepts. These co-brands combined a lesser-known or unknown beer brand with a complementary, relatively well-known restaurant/fast food brand. The study evaluated how different combinations of original brand equity (high, medium, low) and the introduction of a cause-related variable affected overall preference for the co-branded product.

Sample331 participants

ContextConsumer packaged goods (specifically the beverage and food service industries)

Variables

IV["Brand equity of individual brands (high, medium, low)","Type of co-branding alliance (complementary)","Presence of a cause-related modifying variable"]

DV["Overall brand preference for the co-branded product","Consumer response to brand associations"]

CV["Product category (beer and restaurant/fast food)","Participant demographics (though the sample was specific)"]

Strengths & Limitations

Strengths

+Investigated the impact of unknown real brands in co-branding.
+Developed and tested a new measurement scale for 'overall brand preference'.

Limitations

The chosen sample might not reflect diverse consumer demographics. The specific industry context might limit applicability to other sectors.

Reliability & validity

The study employed experimental procedures to control variables, enhancing internal validity. The use of a specific measurement scale for brand preference contributes to reliability, though generalizability might be limited by the sample.

Think critically

How might the cultural context of the target market influence the success of a co-branding strategy involving complementary brands?

Design Principles

"Leverage complementary brand equity to create synergistic product offerings that enhance overall consumer preference."

In crowded markets, co-branding offers a strategic avenue to leverage existing brand equity and introduce new or less prominent brands to a wider audience. Understanding how consumers process these combined brand identities is crucial for developing effective marketing campaigns and product introductions.

What This Means for Your Design

Teaming up a popular brand with a less famous but related brand can make people like both more, especially if they are presented well.

How to use in your project

1.Use this research to justify exploring co-branding as a potential strategy for your design project.
2.Reference findings on brand equity and consumer preference when discussing your design choices.

Add to My Project

Quick Cite

Paragraph starter

Research indicates that co-branding, particularly when pairing a well-established brand with a complementary, lesser-known entity, can significantly enhance overall consumer preference. This strategy is effective in competitive markets by leveraging existing brand equity to introduce new offerings and positively influence perceptions of all involved brands.

Source

ResearchSpace (University of KwaZulu-Natal)

An analysis of complementary competence co-branding potential in the beer industry.

journal · 2016

View source

Questions About This Research

What does the research say about co-branding with complementary, lesser-known brands can enhance overall brand preference?: When developing new product strategies, explore partnerships with complementary brands, especially if one brand has lower market recognition, to leverage combined appeal and enhance overall consumer preference. Evidence: ResearchSpace (University of KwaZulu-Natal) (2016).
Why does "Co-branding with complementary, lesser-known brands can enhance overall brand preference." matter for design?: In crowded markets, co-branding offers a strategic avenue to leverage existing brand equity and introduce new or less prominent brands to a wider audience. Understanding how consumers process these combined brand identities is crucial for developing effective marketing campaigns and product introductions.
How can designers apply this research?: When developing new product strategies, explore partnerships with complementary brands, especially if one brand has lower market recognition, to leverage combined appeal and enhance overall consumer preference.
What were the main findings?: Co-branding can positively influence overall brand preference, even when one of the brands has low equity.. The way co-brand concepts are presented and measured significantly impacts observed preferences.. The equity level of the original brands influences the overall preference for the co-brand.. Cause-related marketing can act as a modifying variable affecting co-brand preference.
What research method was used?: Experimental research with 331 participants.
How strong is the evidence?: Evidence strength is rated Moderate effect, based on a 2016 journal from ResearchSpace (University of KwaZulu-Natal).
What should I do differently in my next project?: When launching a new product or seeking to revitalize an existing one, identify potential partner brands that offer complementary benefits and have a strong existing customer base, even if their overall brand recognition is lower.
What are the limitations?: The study used business students as participants, which may not fully represent the general consumer population. The specific brands used were unknown to the participants, which could influence generalizability.