Franchising and licensing: Two powerful ways to grow your business in any econom

Question

Franchising and licensing: Two powerful ways to grow your business in any economy (4th ed.)

Chapter 19 – Structuring Licensing Programs and Agreements

Intel ran a successful advertising campaign several years ago with the tag line – “Intel Inside” – indicating that the computer or technology being purchased would be better than competitors because it had an Intel chip inside.

Part of the agreement for technology companies to use the sticker on the outside of the item and the packaging was that the manufacturer could not use a competitor such as AMD. This gave the Intel a “Brand” image in the minds of consumers.

Share with your classmates any other “Branding” exercise similar to the Intel Inside campaign.

Was it successful?

Was this a long term campaign?

Any additional thoughts on the campaign?

Explanation / Answer

The branding exercise that Intel followed with its “Intel Inside” campaign, was Co-Branding or Dual Branding, where two or more brands come together with a combined offer, where both the brands strengthens the other’s brand image in its customer base due to the brand recognition it holds with its customers.

Another example of a dual branding campaign is “Experience Colours” campaign of Pottery Barn and Benjamin Moore. Pottery Barn identified its customer’s need of paint colours. So they partnered with Benjamin Moore, which is a paint company to answer the customer’s queries regarding paints, by creating a product line of paints, and added a section in Pottery Barn’s website, where the customers can pick from that product line of paints to complement the furniture they are ordering. This way the Brand Benjamin Moore got exposure to a new set of customers, where Pottery Barn’s brand helped it to establish Benjamin Moore’s brand in Pottery Barn’s customers.

It was a successful campaign for Pottery Barn, but the Benjamin Moore was later replaced by Sherwin-Williams brand of paints, though the overall campaign still is working successfully. Yes it is a long term campaign, because furniture and house paint are complementing products, and customers who are seeking to buy furniture are generally going for a refurnishing or shifting to a new house, hence mostly they might even be customers for paint. Hence, both the brands are benefiting from the campaign.

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