Combining Woolworths and UberEats
The successful introduction of new brands into a market is not an easy task, due to saturated markets and increasing advertising costs (Klopper and North,2011). A different approach known as brand extension or brand growth strategies is an increasingly popular way to introduce a new product. There are four main ways to grow a brand within a product category, namely, line extensions, brand extensions, concept extensions and co-branding. For the purpose of this blogpost we will explore co-branidng as a potential growth strategy. Using a co-branding strategy between Woolworths and UberEats, we will explore the elements that has to be considered when implementing a co-branding strategy as well as the future benefits of this new strategy.
Video 1: What is co branding
A co-brand, in essance, is a brand allience which involves brands from different organisations that combine to engage in effective, strategic or tactical brand building programmes, or to create co-branded market offerings (Simonin&Ruth,1998). Co-branding is an initiative that utilises the advantages of two strong brands and combining them to display a logical relationship. This logical relationship has the ability to benefit both brands in a unique manner. Two brands that I think have a logical relationship is UberEats and Woolworths Food. I would suggest a co-branding strategy between these two brands with the product offering of Woolworths’ “eat in for 4 under R150” deal to be made available on UberEats. When a brand wants to implement a co-branding strategy there are some elements to consider, we will look at the following considerations (printrunner,2017):
Is the target market of UberEats and Woolworths food cohesive?
The target market of the Woolworths “eat in for 4 under R150” are families that need quality meals at a great deal that can be prepared easily and without hassle. UberEats’ target market are individuals that are searching for reatsaurant qulaity meals in the comfort of their homes. Both target markets are interested in a quality product that is convenient. When we combine Woolworths’ offering with UberEats both target markets are not only satified, but the Woolworths consumer is given the option of convenience delivered to their door. This will, in return create a space where both customers are more satisfied with the new product.
Is the brand personalities of UberEats and Woolworths simbiotic?
The brand personalities of Woolworths and UberEats are cohesive and will offer even more to their consumers as a collective. Both brands are sophisticated and strive to deliver quallity products. As a collective they can offer their consumers even more.
Image 1: Woolworths Eat in for 4 under R150 special
Image 2: UberEats logo
Will the reach and presence of the brands benefit eachother?
The reach of UberEats will expand Woolworths consumer profile and UberEats will be exposed to consumers utilising the UberEats app. This means that both Woolworths and UberEats will benefit from the co-brands presence and reach.
When we take a look at the considerations that are vital to a co-branding strategy between Woolworths and UberEats, it is evident that the two brands will form a successful Co-brand that will not only benefit both brands, but also grown them.
Looking at the above considerations we can say that co-branding in this instance will establish credibility as Woolworths and UberEats are both successful brands within the South African market. These two brands working together establishes credibility, as each company is able to highlight and reflect each other’s assests and thus strengthen their position in their given market (primepay,2013). Woolworths and UberEats offering a joint product will automatically ensure the opportunity for each brand to gain the interest of each other’s market. With the help of co-branding, extending reach can also ulimately increase the chances of generating more sales for each brand (primepay,2013). Another great benefit that is assocated with co-branding is a double or increased marketing budget. The costs of marketing this new strategy/product can be split between UberEats and Woolworths.
Through understanding and analysing the considerations and benefits associated with co-branding, it is evident that a growth strategy, in the form of co-branding, between Woolworths and UbertEats could be a successful venture. It can be successful due to the fact that there a mutual benefits for both brands and both brands will have the chance to grow in their respacted markets.
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References:
Video 1: What is co branding Available at: https://www.youtube.com/watch?v=vjWFrEfw23I
Image 1:Woolworths Eat in for 4 under R150 special Available at: https://www.facebook.com/WoolworthsSA/photos/a.235745168177.137047.214878073177/10151158791748178/
Image 2: UberEats logo. Available at: http://hkubereats.com/en/
