Choosing the Wrong Secondary Brand as a Partner Might Create Negative Spill Over Effects

The statement "Choosing the wrong secondary brand as a partner might create negative spill over effects" suggests that a poor choice of secondary brand in a brand alliance can lead to negative consequences, potentially affecting the image and reputation of the primary brand. In this context, brand alliances refer to collaborations or partnerships between two or more companies involving their respective brands, such as co-branding, joint promotions, licensing, or sponsorships. A suitable secondary brand is of utmost importance to ensure the success and effectiveness of a brand alliance. There are several potential reasons why a brand alliance with the wrong secondary brand may create negative spill over effects: 1. Brand Image Mismatch: A mismatch in the brand images of the partnering companies can lead to confusion and dilution of the core values and promises associated with each brand. The customer may struggle to understand how the two brands align and, as a result, either or both brands may suffer negative consequences related to their image and perception. Example 1: In 2016, luxury fashion brand Louis Vuitton partnered with skateboarding and streetwear brand Supreme to release a limited-edition collection. While the collaboration was successful for both companies in terms of sales and generating buzz, some traditional Louis Vuitton customers, who appreciated the brand for its elegance and sophistication, felt alienated by the alliance with a streetwear brand, causing a minor negative impact on Louis Vuitton's brand image. 2. Inconsistency in Quality and Performance: If the secondary brand is perceived to deliver lower quality products or services or has a history of poor performance, it can negatively impact the primary brand's reputation. Customers may question the primary brand's commitment to quality and its choice of partner, which can cause doubts about the integrity and consistency of the primary brand's offerings. Example 2: In the late 1990s, luxury car manufacturer Aston Martin signed a deal with Ford to produce an entry-level sports car, the DB7. Even though the project was aimed at increasing the accessible luxury segment, some enthusiasts and potential buyers questioned the quality and performance of the resulting product, as Ford was predominantly known for producing mainstream vehicles. This partnership created some negative perceptions about Aston Martin's commitment to their heritage of luxury, performance, and exclusivity. To prevent negative spill over effects that can result from a poorly chosen brand alliance, companies should make sure they carefully evaluate potential partners for compatibility in terms of brand values, image, target audience, as well as quality and performance. By doing so, they can ensure a successful and effective brand alliance that drives growth opportunities, market expansion, and overall positive results for both parties.