Group Alliances TeamGroup Strategy and AlliancesNovember 2014

ASAP COMPETITIONInnovative Alliance Best Practice

Innovative Alliance Best Practice proposition:Structured Approach for Joint Branding

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Co-branded alliance

• Expresses and supports a joint proposition of Philips and another brand

• Two brands are partners of a joint offer

• Clear win-win, balance in needs and contributions

• Could require creating a dedicated brand identity

What is a co-branded alliance & why we use co-branding Alliances in Philips

Co-branded alliances support further growth

• Bring one story alive

• Leverage each brand’s strengths

– Brand stands for credibility and specific domain(i.e. coffee)

• Better addressing specific target group

• Develop new channels

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The Philips Strategic Alliance Process incorporates the joint branding processA 6-steps framework supports the development of an alliance, from the identification of the need and strategic rationale to the alliance evaluation and leveraging of key learnings. The co-branding process is part of the third step.

Trust Trust

Evaluatestrategic options

Manage thealliance

Evaluate the alliance

Partner selection and term sheet

Prepareshort list

Design the alliance

Alliancecapabilities

1

2

3

4

5

6

STRATEGIC ALLIANCE PROCESS

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Structured approach for defining joint branding for joint propositionsA structured process supports the creation of joint branding, from identifying the strategic rationale and brand value of each partner to the right communication of the joint brand to customers.

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Your objective

Your partner

The VPH

Your branding strategy

Joint branding

Signature branding

Ingredient branding

Sign

off

Joint proposition name development

Joint brand identity creation

Joint branding guide

Use signature branding guidelines

Use ingredient branding guidelines

Step 1 Step 2

Sign

off

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Determine the alliance Branding strategy (Step 1a)In order to determine which branding strategy is the most appropriate for the potential alliance, there are certain elements that should be identified.

Define your objective:4 objectives: brand leverage, category leverage, brand communication leverage, innovation leverage

Assess your partner: Branding principles that should be considered when making assessment:

Find your insight: Deep understanding of consumer and customer behavior, follow the 3 step logic of the Value Proposition House (VPH): outside-in, inside-out, brand positioning.

Choose your brand strategy: Before selecting the best branding strategy you need to ask yourself few questions.

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Understand the branding strategy (Step 1b)Philips uses 3 possible branding strategies for an alliance.

Joint Branding: Joint proposition of Philips and another brand. The two brands are equal partners of a jointly owned proposition. It requires the creation of a dedicated brand identity thatrespects the communication principles of both parties.

Signature Branding: A distinctive mark or character that identifies a person or a thing. This strategy allows Philips to offer special proposition through collaboration with a guest partner.

Ingredient Branding: Philips appears as a component of another brands’ offer. The Philips component increases the desirability and credibility of the host’s brand proposition and is used to promote Philips technology.

Intro: explain the background of the alliance cooperation (how did it start, when?)

Why: define the objective of the alliance (include KPIs and scope)

What: describe the alliance proposition (include insight and discriminator, or VPH)

How: state which alliance branding strategy you selected (based on the appropriate set of questions)

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Sign off the branding strategy (Step 1c)The Philips global brand team will approve any joint branded alliance proposals.

Once the branding strategy is validated, the necessary guidelines for its implementation are provided.

It is essential to take a step back and review the submitted proposal.

validated not validated

To submit for the joint branding approval, the brand strategy should consist of:

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Develop a Joint Proposition Name and Brand Identity (Step 2a)

The Naming Process: It is essential to start the joint branding project with the creation of a joint proposition name following the naming process.

The joint Brand Identity:The joint branding identify consists of the name for the joint proposition, scanning and assessing the brand identity elements of each partner’s brand, and creating the right logo lock-up.

Photography Typography Tone of voice Graphics Layout Color palette

start create select validate trademark Linguistic check Final choice

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Joint proposition name: includes the outcome of the joint naming process andthe chosen name

Joint brand identity: describes the principles and elements of the created jointbrand identity

Joint brand guide: shows relevant examples of the joint branding in action, for all relevant

touch points.

Sign off the final alliance joint branding (Step 2b)Signing off by the Global Brand team to be set for a successful launch.

Go to market with joint branded proposition

It is essential to take a step back and review the submitted proposal.

validated not validated

To submit for the joint branding approval, the brand identify should consist of:

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Impact of the process and its contribution to alliance managementAdopting a structured approach for creating a joint brand with the potential partner, results in the

value maximization of the joint proposition.

• The joint branded alliances better “bring one story alive”

• Leverage each brands strengths (brand’s value and credibility in a specific domain)

• Better addressing specific target group

• Develop new channels

• Purchase intend increase

• Better proposition explaining the story

• Proposition uniqueness differentiation

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The alliance between Philips and Disney – A Joint Branding ExampleThe joint branded alliance between Philips and Disney, is considered as one of the most successful alliances from the co-branding perspective.

We have created a new market which helps us to support our growth ambition.

• Bring one story alive

• Leverage each brand’s strengths

• Higher level of credibility for consumer

• Better addressing specific target group

• Develop new channels

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Joint marketing planning/ Go-to-marketA joint plan and execution accelerates the market penetration

Create awareness & communicate the joint proposition

• Create a joint Marketing plan

– With a clear vision, objectives and responsibilities

– In all customer / consumer touch points the joint brand identity and communication strategy should be reflected

– Align on required planning and deliverables

• Communicate and roll-out together

– Joint market kick-offs / project teams and customer kick offs

• Evaluate the joint communication

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• Continue sharing Philips’ Best practices in Driving Alliance management at (ASAP) conferences.

• Continue using the tools together with our alliance partners. Open sharing

Transferability of Alliance Joint-Branding Best PracticeSharing innovative practices with others, in order to improve our process & for others to use as a best practice for alliance management.

Use as best practice by other

organizations

• Other organizations could use this Alliance Co-Branding Best Practice to set up their own joint branding process.