Brand Alliance, a Strategy to Enter New Markets and a Tool for Positioning

Brand alliance has emerged in the last two decades as a form of cooperation between two or more established brand names and has expanded as a business strategy to include both the production/ service sectors. This strategy is taking different forms; the most common one is co-branding which involves associating a single product with more than one brand name. .Another approach to create a brand alliance is brand licensing, in which one business obtains the rights to utilize the brand name owned by another business for a specific project or activity under a licensing agreement or contract. The third common approach is known as cross-marketing, and this implies the creation for a joint marketing campaign which allows two or more companies to promote each other and consequently broaden their prospective consumer bases.Brand alliance may be a short-term tactical partnership to increase awareness in the consumer’s minds, promote sales and provide urgent financial resources, as it may also be a long-term strategic tool for brand growth and development and marketing success. In this sense, relying on a case study which involves a contracted alliance since 2005, between Algeria post foundation and mobiles branch, the researcher will try to demonstrate the advantages of such a strategy for these two operators, as a tool to enlarge the target population, penetrate new markets, strengthen the brand image in the mind of the consumer and reinforce its competitive position.

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