Co-branding can be very effective. When the fashioncompany H&M - which has quite a budgetimage - works with upgraded brands of guestdesigners like Madonna and Victor & Rolf, interesting things happen. As long as both brands are strong, they can handle this and take advantage of it. H&M is wellknown almost worldwide. The company has a large and attractive targetgroup which may be a bit off to the side for Madonna and Victor&Rolf under normal conditions. By cooperating with H&M they can get in touch with this targetgroup and still hold on to their upgraded image.
The trick is to know when co-branding works and when it does more harm. Common values may be a guideline, but it isn´t always the answer.
Bild: H&M
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