TOPIC 9
Co-Branding,
Franchising
Relationship and
Franchisor Support
Services
Prepared by Pn. Najuwa Mohd Nasir
, Definition
What is a Co-Branding?
Co-branding is the merging of
multiple brands and their products under
a single roof.
Co-branding provides additional
revenue for your franchise and offers the
potential of selling more to your existing
and new customers.
,Example of Co Branding Franchise is McDonald ’ s /
McCafe.
Co-branding, therefore, must encompass a number of
brands being joined to reach target audiences of similar
interest.
Retail co-branding is dominated by businesses that provide
convenience benefits to consumers.
Examples of fast food franchises teaming up with service
stations (fuel retail) and grocery stores, as demonstrated
by McDonald ’ s and Shell, Hungry Jacks and BP, and
Subway with 7-Eleven.
, McDonald ’ s enjoyed significant growth through the 1980s and
1990s, and consistently developed and introduced successful new
concepts such as ‘ drive thru ’, the breakfast menu and an early
version of McCafe, broader societal concerns emerged that saw
McDonald ’ s stall in sales and growth over the latter part of the
1990s and early 2000s.
Purchasing frequency by customers declined as a result of issues
such as the fat content of fast food and its effect on the obesity
levels of youth. Commentators argued that the type of high-fat,
low-fibre diet promoted by McDonald ’ s was linked to serious
diseases such as cancer, heart disease, obesity and diabetes.
McCafe concept in 1999 was adopted as a mainstream initiative
for McDonald ’ s. These initiatives were developed to reinvigorate
the McDonald ’ s brand. McCafe was created in 1993 as a coffee
pot on the counter of the McDonald ’ s.
Co-Branding,
Franchising
Relationship and
Franchisor Support
Services
Prepared by Pn. Najuwa Mohd Nasir
, Definition
What is a Co-Branding?
Co-branding is the merging of
multiple brands and their products under
a single roof.
Co-branding provides additional
revenue for your franchise and offers the
potential of selling more to your existing
and new customers.
,Example of Co Branding Franchise is McDonald ’ s /
McCafe.
Co-branding, therefore, must encompass a number of
brands being joined to reach target audiences of similar
interest.
Retail co-branding is dominated by businesses that provide
convenience benefits to consumers.
Examples of fast food franchises teaming up with service
stations (fuel retail) and grocery stores, as demonstrated
by McDonald ’ s and Shell, Hungry Jacks and BP, and
Subway with 7-Eleven.
, McDonald ’ s enjoyed significant growth through the 1980s and
1990s, and consistently developed and introduced successful new
concepts such as ‘ drive thru ’, the breakfast menu and an early
version of McCafe, broader societal concerns emerged that saw
McDonald ’ s stall in sales and growth over the latter part of the
1990s and early 2000s.
Purchasing frequency by customers declined as a result of issues
such as the fat content of fast food and its effect on the obesity
levels of youth. Commentators argued that the type of high-fat,
low-fibre diet promoted by McDonald ’ s was linked to serious
diseases such as cancer, heart disease, obesity and diabetes.
McCafe concept in 1999 was adopted as a mainstream initiative
for McDonald ’ s. These initiatives were developed to reinvigorate
the McDonald ’ s brand. McCafe was created in 1993 as a coffee
pot on the counter of the McDonald ’ s.
