LICEO DE CAGAYAN UNIVERSITY

Rodolfo N. Pelaez Boulevard, Kauswagan

Cagayan de Oro City, Misamis Oriental

MIDTERM EXAM
ESSAY

Submitted By:

Charrysah T. Tabaosares

BSBA – FM4

Submitted To:

Mario E. Temporada

Date Submitted:

October 22, 2020

TEST I: ESSAY

1. Why would you be interested in co-branding if you are a franchisor?

 If I’m a franchisor I would be interest in co-branding because of this following

aspect.

 Co-branding helps in enhancing your brand by associating it with another

reputed brand. Along with brand identity, your brand credibility and
reputation will also get a boost, since one brand compliments the other.

 With co-branding, your combined business will have a much larger common
marketing budget, providing you the flexibility to invest more where it
counts.
Aside from that, co-branding also helps in bringing in more talent to drive
your promotions, marketing, and sales, leading to much better returns on
investment (ROI).

 Every business comes with a certain amount of risk. With co-branding, the
risk of failure is diluted across the brands.

2. Why would you be interested in co- branding if you are a franchisee?

 If I’m a Franchisee I would be interest in co-branding because of this following

aspect.

 Co-branding provides additional revenue for your franchise and offers the
potential of selling more to your existing and new customers. By adding
another reputed franchisee with yours, both of you benefit from the added
common traffic.

 Customers expect choices and if you deliver more of it to them by becoming a

co-branded company, then you can expect an increase in overall sales and
ROI.

 For instance, if a car dealership is tagged along with a car accessories outlet,
then expect much more accessories sales and showroom footfalls.
 With co-branding, your customers will get sufficient choices of related
products and services under a single roof. There is no need for them to look
for stuff elsewhere or with your competitors.