Added: 28.06.2011 14:40
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Uniting brands

Uniting brands is a way to compete in the market and while one brand is good two brands in one product is even better.

Brands that are uniting usually increase interest about the result so it's a very effective marketing tool. In addition in that way the target group definitely increases and the more different the brands are the bigger can be increase in target group. However it's also more risky.

But still many brands have done this for longer or shorter period of time, just for one collection as for example H&M has done with Madonna or Karl Lagerfeld. Or now Telia and Sonera has created a new brand TeliaSonera where both the Swedish and Finnish parts are together. Of course also the latest and most popular union of Nokia and Microsoft is a big question mark - what will be the result and will the aim to beat Apple iPhone be reached.

It has always been interesting to follow what will be the result of uniting two or sometimes even more brands. And usually I would like to say that the result has been positive. But still there are different kinds of customers with different opinions. Moreover after releasing the common product and getting the feedback from customers how to divide profit if the product is sold good in the market or how to divide loss if it isn't successful. Also some misunderstandings about producing process can appear so there is a high risk of conflicts even despite contracts that have been done.

Research question: The outcome of uniting brands.

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