Advantages and Prospects of Co-Branding in the Ukrainian Market

Abstract

BACKGROUND AND OBJECTIVES. The marketing practices of companies over the past two decades have increasingly been based on co-marketing, or inter-firm marketing alliances. The mutual recognition and understanding that each firm's success depends in part on the other firm forms the foundation underlying co-marketing activities. Firms move from trying to win alone to forming networks of partner firms. Corporations understand the need for alliances to acquire and maintain competitive advantage.METHODS. We used general scientific and special research methods: abstract-logical – to summarize theoretical and methodological foundations of co-branding as an integrative marketing tool for joint development of companies; economic-statistical – to analyze the level of development of poultry companies; monographic – to study the experience of individual companies with horizontal form of co-branding; analysis and synthesis – to study the components of co-branding companies; sociological research – to identify key success factors of co-branding.FINDINGS. The structural and logical model of co-branding alliances of poultry companies, the use of which is based on a co-branding strategy, creates the necessary basis for its further development within the framework of modern marketing theory, will increase the effectiveness of co-branding.CONCLUSION. Co-branding, which is a form of strategic collaboration between two brands that involves bringing them together to create a new product or service, makes the marketing alliances of companies visible to the consumer. In doing so, companies imply recognition of the fact that their prominence represents added value. Closer collaboration with retailers, more focused promotion, and co-branding are becoming ways for many consumer companies to control costs and keep prices down. An example of such cooperation is the use of a co-branding strategy for poultry companies.

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“…A form of complementary competence co-branding is innovative co-branding associated with the development of a new, innovative product. It is associated with innovative co-branding alliances (Dudko, 2022). The literature analyzes innovative co-branding in the context of new product development with cultural references (Sun et al, 2022), a long-term perspective (Ströbel et al, 2020), and value creation potential (Nunes et al, 2003).…”

“…In the literature, co-branding is analyzed as a brand leveraging strategy (Quamina et al, 2023) to create value, uniqueness, and competitiveness (Hjalager & Konu, 2011), to achieve competitive advantage (Grębosz, 2013) and to improve a company's competitive power (Zuhdi et al, 2020). Studies have highlighted innovation's impact on co-branding effectiveness (Dudko, 2022). For example, innovative co-branding between a popular shoe brand and a well-known food brand allowed for the creation of additional value, which attracted attention and increased consumer engagement.…”