Bellerbys Economics - Mr Stephenson

Tuesday, October 23, 2007

Tesco & Disney

The news that Tesco will soon launch a whole new range of 'healthy' foods carrying Disney cartoon characters - including fresh fruit, yoghurts and breakfast cereal - is an example of co-branding. It increases the inelasticity of the products as children use their 'pester power' to force their parents into buying the correctly branded product.

Examples of co-branding have always existed of course - breakfast cereals, for example, often carry marketing material for children's TV series and the like. However, the difference here is the scale of the agreement. Not only are whole new areas of produce going to be rebranded and repackaged - but this deal also gives Tesco the opportunity to extend its placement in Disney enterprises worldwide - only a matter of time before Donald Duck Tesco yoghurts are on sale in Disney World Florida.

It's also a neat way to remove the stigma that is often associated with own-brand supermarket products. The glamour od Disney begins to attach itself to the Tesco brand name, again increasing value-added appeal.

Other current examples of co-branding include Nike's link with iPod; the ubiquitous Prada mobile phone which is in fact produced by LG Electronics in South Korea; and the NBA Youtube channel, which is technically a microsite within Youtube - but which heralds the dawn of the chaos of Youtube perhaps beginning to be organised into sellable channels for quick downloads to video iPods.

4 Comments:

  • According to Tesco "This relationship with Disney will offer parents an easy way to make healthier eating fun." So doubtless this will be applauded. Just as teachers are supposed to be teaching in a ‘fun’ way, we are entertainers more than educators. We have happiness indexes that measure the fun we have in life and ‘Mood Food’ books telling us what to eat to have a fun life. In nightclubs people buy and sell tablets called ‘ecstasy’ and women’s magazines talk of reaching the ‘ultimate fun’ in relationships.
    There are now degree courses in happiness (University of East London) and ‘well-being’ clinics proliferate among the leafy suburbs.
    With all this fun we can forget about the homeless, the poor, the undernourished and the oppressed. If we feel a need for unhappiness we just turn on East Enders.

    By Blogger chris, at 10:00 am  

  • I like Tesco & Disney's idea about using cartoons characters to attract children and these children make pressure on their family to buy that product and by this strategy their incomes increase easily..it is very clever..

    By Blogger mojah, at 1:55 pm  

  • What is the different between sponsorship and co-branding?
    For example, Is Manchester United and Nike a form of co-branding? Is it possible if a business relationship is both involved in sponsorship and co-branding?

    By Blogger S.A.M., at 4:18 pm  

  • well,Co-branding means when two (or more) firms promote and sell the product of a manufacturer firm as a joint initiative.While Sponsorship may be an arrangement to exchange advertising for the responsibility of funding a popular event or entity or to support an event, activity, person, or organization financially or through the provision of products or services..

    By Blogger mojah, at 5:04 pm  

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