Abstract
Brand alliances, which involve intentionally presenting two or more brands together, appear in many different forms. For example, Subway stores placed within Wal-Mart, Airbus A380 airplanes with Rolls-Royce Trent engines, and Nike + iPod co-developed personal trainers are among the more well-known manifestations of this strategy. Our study contributes to the literature on brand alliances by conceptualizing and measuring a typology of brand alliance types based on their degree of integration. We also empirically test and find that consumers are sensitive to varying degrees of brand alliance integration. We then link these findings to the managerial decision of how and with whom a brand should form an alliance. We use extensive examples, conversations with managers, and survey-based experiments to show that brand alliance integration is relevant and impactful to both managers and consumers.
Similar content being viewed by others
Notes
A more comprehensive review is available by request.
Results of a replication study using different participants, product categories, and brands are available upon request.
References
Amaldoss, W., & Rapoport, A. (2005). Collaborative product and market development: theoretical implications and experimental evidence. Marketing Science, 24(3), 396–414.
Bagozzi, R. P., & Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8–34.
Burgelman, R. A., & Doz, Y. L. (2001). The power of strategic integration. MITSloan Management Review, 42(3), 28–38.
Byun, K., Song, D., & Kim, M. (2017). The dilution effects of media strategy on brands’ copromotion efficiency: identifying best practices for copromotion media planning. Journal of Advertising Research, 57(2), 207–226.
Desai, K., & Keller, K. L. (2002). The effects of ingredient branding strategies on host brand extendibility. Journal of Marketing, 66(1), 73–93.
Dhar, S. K., & Raju, J. S. (1998). The effects of cross-ruff coupons on sales and profits. Management Science, 44(11-part-1), 1501–1516.
Dudey, M. (1990). Competition by choice: the effect of consumer search on firm location decisions. The American Economic Review, 1092–1104.
Ghosh, M., & John, G. (2009). When should original equipment manufacturers use branded component contracts with suppliers? Journal of Marketing Research, 46(5), 597–611.
Hair, J. F., Bush, R. P., & Ortinau, D. J. (2006). Marketing research. New York: McGraw-Hill/Irwin.
Hamilton, R. (2016). Consumer-based strategy: using multiple methods to generate consumer insights that inform strategy. Journal of the Academy of Marketing Science, 44, 281–285.
Helmig, B., Huber, J., & Leeflang, P. S. H. (2008). Co-branding: The state of the art. Schmalenbach Business Review, 60(4), 359–377.
Iyer, G., & Pazgal, A. (2003). Internet shopping agents: virtual co-location and competition. Marketing Science, 22(1), 85–106.
Johnson, J. L. (1999). Strategic integration in industrial distribution channels: managing the interfirm relationship as a strategic asset. Journal of the Academy of Marketing Science, 27(1), 4–18.
Koschmann, A. & Bowman, D. (2018). Evaluating marketplace synergies of ingredient brand alliances. International Journal of Research in Marketing, forthcoming.
Monga, A. B., & Lau-Gesk, L. (2007). Blending cobrand personalities: an examination of the complex self. Journal of Marketing Research, 44(3), 389–400.
Netemeyer, R. G., Krishnan, B., Pullig, C., Wang, G., Yagci, M., Dean, D., Ricks, J., & Wirth, F. (2004). Developing and validating measures of facets of customer-based brand equity. Journal of Business Research, 57(2), 209–224.
Newmeyer, C. E., Venkatesh, R., & Chatterjee, R. (2014). Cobranding arrangements and partner selection: a conceptual framework and managerial guidelines. Journal of the Academy of Marketing Science, 42(2), 103–118.
Park, W. C., Jun, S. Y., & Shocker, A. D. (1996). Composite branding alliances: an investigation of extension and feedback effects. Journal of Marketing Research, 33(4), 453–466.
Radighieri, J. P., Mariadoss, B. J., Grégoire, Y., & Johnson, J. L. (2014). Ingredient branding and feedback effects: the impact of product outcomes, initial parent brand strength asymmetry, and parent brand role. Marketing Letters, 25(2), 123–138.
Rao, A. R., Qu, L., & Ruekert, R. W. (1999). Signaling unobservable product quality through a brand ally. Journal of Marketing Research, 36, 258–268.
Samu, S., Krishnan, H. S., & Smith, R. E. (1999). Using advertising alliances for new product introduction: interactions between product complementarity and promotional strategies. Journal of Marketing, 63(1), 57–74.
Samuelson, B. M., Olsen, L. E., & Keller, K. L. (2015). The multiple roles of fit between brand alliance partners in alliance attitude formation. Marketing Letters, 26(4), 619–629.
Simonin, B. L., & Ruth, J. A. (1998). Is a company known by the company it keeps? Assessing the spillover effects of brand alliances on consumer brand attitudes. Journal of Marketing Research, 35(1), 30–42.
Stremersch, S., & Tellis, G. J. (2002). Strategic bundling of products and prices: a new synthesis for marketing. Journal of Marketing, 66(1), 55–72.
Swaminathan, V., Reddy, S. K., & Dommer, S. L. (2012). Spillover effects of ingredient branded strategies on brand choice: a field study. Marketing Letters, 23(1), 237–251.
Van der Lans, R., Van den Bergh, B., & Dieleman, E. (2014). Partner selection in brand alliances: an empirical investigation of the drivers of brand fit. Marketing Science, 33(4), 551–566.
Venkatesh, R., & Mahajan, V. (1997). Products with branded components: an approach for premium pricing and partner selection. Marketing Science, 16(3), 146–165.
Voss, K. E., & Gammoh, B. S. (2004). Building brands through brand alliances: does a second ally help? Marketing Letters, 15(2–3), 147–159.
Wernerfelt, B. (1994). Selling formats for search goods. Marketing Science, 13(3), 298–309.
Worm, S., & Srivastava, R. K. (2014). Impact of component supplier branding on profitability. International Journal of Research in Marketing, 31(4), 409–424.
Yan, R., & Cao, Z. (2017). Is brand alliance always beneficial to firms? Journal of Retailing and Consumer Services, 34, 193–200.
Acknowledgements
The authors would like to thank John Hulland, Vanitha Swaminathan, Sayan Chatterjee, and Jagdip Singh for feedback on previous versions of this manuscript.
Author information
Authors and Affiliations
Corresponding author
Appendices
Appendix 1
100 brand alliance examples
1 | LG Android Nexus smartphone | 26 | Citi American Airlines credit card |
2 | Nike + i Pod Sport Kit 1 | 27 | Happy Meals with Disney toys |
3 | Krups—Heineken BeerTender | 28 | Huggies with a coupon for Good Dinosaur |
4 | Coach leather Baker Furniture | 29 | Starbucks and Spotify |
5 | Color Your Room by Pottery Barn and Sherwin Williams | 30 | Southwest Airlines Rewards and Hertz |
6 | Tide with Downy fabric softener | 31 | Costco and Walgreens via Google Express |
7 | Frito-Lay chips with KC Masterpiece | 32 | ampm convenience gores and BP |
8 | Eddie Bauer edition Ford Explorer | 33 | KFC–Taco Bell–Pizza Hut outlets |
9 | DQ Oreo Blizzard | 34 | Starbucks and Barnes & Noble |
10 | Samsung phone with Android software | 35 | JC Penney and Sephora |
11 | Dell PC with Intel processor | 36 | Costco and American Express |
12 | Ford Explorer with Firestone tires | 37 | Costco and Visa |
13 | Airbus A380 with Rolls-Royce engine | 38 | Southwest Airlines Rewards and Chase |
14 | YoCrunch yogurt with separate Oreo pieces | 39 | Hilton and AT&T wireless service |
15 | Whirlpool appliance with CoolVox speaker | 40 | Capital One and Transunion Credit Wise |
16 | iPod with Bose mulct system | 41 | McDonalds and various brands for Happy Meals |
17 | Pfizer’s Human with BD pen needles | 42 | Fox and NFL |
18 | Bacardi Rum and Coke | 43 | Bonne Belle and Dr. Pepper: Flavored Lip Balm |
19 | Dell PC with a Canon printer | 44 | BMW and Louis Vuitton |
20 | Converse X Jordan 2-pack of basketball shoes | 45 | Uber and Spotify: Soundtrack for Your Ride |
21 | Tide with Febreeze | 46 | BuzzFeed and Best Friends Animal Society |
22 | Gap and RED | 47 | Alexander Wang and H&M |
23 | Historical iPhone and AT&T | 48 | CoverGirl and Lucasfilm: Light Side and Dark Side Makeup |
24 | Ford and Eddie Bauer | 49 | Google and Luxottica |
25 | GoPro and Red Bull | 50 | Snapchat and Square’s Snapcash |
51 | Christian Dior Fusion Sneakers and Colette | 76 | McDonald’s and Monopoly |
52 | Apple Pay and Mastercard | 77 | Crest Scope products |
53 | Kohls and Vera Wang | 78 | Glad trash bags with Febreeze |
54 | Target and Fixer-Upper | 79 | Lunchables with various branded components |
55 | Canon’s moters for other laser printers | 80 | Dodge and Yamaha co-promotion |
56 | Historic: NutraSweet/Splenda Diet Coke and Pepsi | 81 | University of Oregon and Nike |
57 | Beech Nut baby foods with Chiquita bananas | 82 | University of Maryland and Under Armour |
58 | Bayliner Boat/Volvo Engine | 83 | Sabra Hummus with Rold Gold pretzels |
59 | Healthy Choice Cereal by Kellog | 84 | Dole and Incredibles 2 |
60 | Special K, Ego Waffles | 85 | Costco and Bali Blinds |
61 | Martha Stewart Paint by Sherwin Williams | 86 | Alienware Laptop with NVIDIA graphics card |
62 | Stevie Nicks and Tom Petty | 87 | Adobe and McAfee Software |
63 | CNN/Time News-stand episodes | 88 | Barnes & Noble and University Bookstore |
64 | Jack Hanna/Columbus Zoo animal experiences | 89 | Direct TV and AT&T |
65 | Coca-Cola and Ballpark sweepstakes promotion | 90 | Cooking Light and Living Magazine bade |
66 | Cleveland Clinic and Cleveland 66 Indians Youth Baseball | 91 | Target and Soul Cycle |
67 | Starbucks and Spotify | 92 | Sirius XM in various branded vehicles |
68 | Ziploc bags with Disney character images | 93 | Target and Mossimo |
69 | Metallica and the San Francisco Orchestra | 94 | J.Crew X New Balance |
70 | Historical: FedEx and Kinkos | 95 | NBC Olympic broadcasts |
71 | Cold Sone Creamery and Tim Horton’s | 96 | Corvette Racing and SONIC Tools |
72 | Jeep and Mopar | 97 | Casper mattresses and West Elm furniture stores |
73 | Google and Luxottica glasses | 98 | Chevrolet and Road America |
74 | Dodge HEM I engines | 99 | Mastercard and Apple Pay |
75 | Starbucks and Safeway | 100 | Dick’s Sporting Goods Pittsburgh Marathon |
Appendix 2
Personal interviews with executives: profiles of participants and research methods
Profile/Characteristics | Participants | |
---|---|---|
Exchange type | Business-to-business (primarily) | 16 |
Business-to-consumer (primarily) | 11 | |
Industry | e-Commerce/information technology | 8 |
Food | 3 | |
Consumer goods (inexpensive, nonfood) | 4 | |
Technology | 5 | |
Consulting | 2 | |
Other | 5 | |
Position | Chief executive officer/managing director | 3 |
President, vice president, or director | 15 | |
Manager, senior manager | 9 | |
Function | Marketing (including advertising) | 14 |
Sales | 5 | |
Business consulting | 1 | |
Senior management | 5 | |
Corporate planning | 2 | |
Total | 27 |
Interview Protocol (Guideline Questions)
-
Could you talk about brand alliance examples that your firm has pursued or overseen? Why did your firm pursue these relationships?
-
How do your customers view your cobranding efforts? What do they stand to gain or lose?
-
In the above examples, how would you assess the actual outcomes vis-à-vis the intended outcomes?
-
How do you see the different types of brand alliances? When and why would firms pursue these types of partnerships?
-
What characteristics do you look for in your partners? Why?
Appendix 3. Experimental stimuli
1.1 Higher Integration: Co-development
Barnes & Noble bookstores has announced that they have teamed up with Starbucks coffee to co-develop and co-produce a special summer blend of coffee. The blend will be sold in Starbucks outlets located within Barnes & Noble stores. Barnes & Noble spokesperson Chris Rayes said “This coffee blend – co-developed and jointly produced by Barnes & Noble and Starbucks – will be perfect for the warmer seasons.”
1.2 Lower Integration: Co-promotion
Barnes & Noble bookstores has announced that they will be selling a special summer blend of Starbucks coffee. The blend will only be sold in Starbucks outlets located within Barnes & Noble stores. Barnes & Noble spokesperson Chris Rayes said “This coffee blend – developed and produced by Starbucks and sold at Barnes & Noble – will be perfect for the warmer seasons.”
1.3 Control
Barnes & Noble bookstores has announced that they will be selling a special summer blend of coffee developed and produced by Starbucks. The blend will be sold in Starbucks outlets located within Barnes & Noble stores as well as other Starbucks locations. Barnes & Noble spokesperson Chris Rayes said “This coffee blend – developed and produced by Starbucks – will be perfect for the warmer seasons.”
Rights and permissions
About this article
Cite this article
Newmeyer, C.E., Venkatesh, R., Ruth, J.A. et al. A typology of brand alliances and consumer awareness of brand alliance integration. Mark Lett 29, 275–289 (2018). https://doi.org/10.1007/s11002-018-9467-4
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11002-018-9467-4