Himme, Alexander and Leonie Zuhorn

Brand Extension versus Co-Branding: Welche Strategie verspricht den größeren Erfolg?

Marketing ZFP - Journal of Research and Management, 34 (2): 158-140, (2012).

Copy reference link   DOI: 10.15358/0344-1369-2012-2-140

Abstract: Brand extension and co-branding are two brand strategies with numerous similarities, but also distinct differences. So far, the existing literature has analyzed these strategies without making a detailed comparison between them. That is why this study discusses the joint and differing opportunities and risks of these two strategies. Spill-over effects, cost synergies, image transfers, coordination and independence issues are assessed in detail. In addition, the study considers the critical success factors for each strategy, which is necessary for a final assessment of the different strategy benefits. These success factors include characteristics of the parent brand, product and brand fit as well as consumer and company characteristics. In this context, the study elaborates under which general conditions which strategy may be more preferable. In the end, it becomes clear that there are some advantages related to a co-branding strategy, which cannot be realized by pursuing a brand extension strategy.

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