Co-branding: Telecom Co. joins hands with Coca-Cola
From Marketing Section of 24h.com.vn, updated Nov 26th, 2012

The market has witnessed a combination of Coca-Cola Vietnam and VinaPhone in a promotion campaign that VinaPhone will offer their mobile telecommunications services to customers who luckily win the prize when purchasing products of Coca-Cola in Vietnam.

Earlier, Coca-Cola and Samsung also co-hosted a banquet music SoundFest at an international standard in Vietnam.

The link between Coca-Cola - Samsung or Coca-Cola - VinaPhone is considered a format of "co-branding" - a concept of marketing that mounting a product or service with more than one brand. Co-branding is also known as a brand partner when the two companies formed the alliance to work together, creating marketing synergy.

The aim of this cooperation is to combine the power of two or more dominant brands to increase the value that customers are willing to pay to take it, or to connect customers’ various perception of the brand with certain products.

The concept is not new, but that fact that the big brands such as Coca-Cola associated with the domestic brands in a promotion campaign is still considered rare. Maybe in hard time of economic situations, consumers have to tighten their spending; therefore, the business cooperation between different brands to launch such the promotion campaign is a wise & effective approach.

Thus, only about 50% of subscribers continuing to use VinaPhone can make this integrated promotion campaign. Besides, the wide coverage of the Coca-Cola distribution network will help VinaPhone approach & get closer to the markets in which VinaPhone has grown.

For Coca-Cola, the tracking traffic of 3.5 million texting messages or assessing the websites for the promotion information does not mean that all these products of Coca-Cola sold are just 3.5 million. It’s because there exist the many other customers purchasing Coca-cola & do not care about the promotion information in the bottle caps.

The co-branding will help expand business scale and satisfy customer needs; achieve financial benefits; strengthen competitive position; introduce new products with a strong impression; creating customer value new experience; increase performance.