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Methods
I. Questionnaire
Questionnaire is an inexpensive way to collect information from a large number of respondents. In order to gather the opinions from customers effectively, distributing the questionnaires is much easier than arranging the interviews with managers of the companies for me. In the other hand, there are few difficulties when doing questionnaire. The first one is the questions; questions must be well arranged and designed. Before we begin designing the questions, the main purpose of the questionnaire should be clarified and the depth of the question must be enough that we could obtain the useful information. Secondly, the deadline we collect the questionnaire must be early enough that we could have adequate time to organize and analyze the results. If these two obstacles could be overcomes that questionnaire would be the effective method. Sample size is another important factor should be concerned, if the size is too small the results could not persuade the readers but if the size is too big, the results would be difficult to organize.
The purposes of the questionnaire
Co-branding involves a huge range of industries and has many definitions. Therefore in this case, Apple and Nike would be focused to demonstrate the influence of co-branding. I want to find out the thinking of the students who were distributed the questionnaires. And the students’ attitude toward to brand preference, brand loyalty
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would be discussed by the questions. Moreover, the questions were designed to ascertain the benefits from co-branding and the details will be described in data collection.
1. Sample
Both of those two companies target on young and fashionable customers, therefore I decided to distribute the questionnaires in campus.
The sample size was 50. Those results were collected from the students who study in undergraduate, postgraduate and Into in university of Exeter. Males and females were distributed the same number of questionnaire. The range of age was from fifteen to over forty years old. The entire questionnaires were distributed by e-mails and face to face.
2. Data collection
Therefore, the questions were been designed into the following four parts to provide the information I need:
The first one was the students’ general ideas about co-branding which involves many definitions, such as sponsorship; the company invests money or products to another in order to increasing their exposure frequency. The football team Manchester United could explain the meaning. As we can see from the jersey of Manchester United, the team name is replaced by AIG and Nike. AIG is the insurance company which uses
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the jersey as their advertisement and Nike is the athletic company that they provide the jersey and relative athletic accessories. Therefore their logos could be showed on the jersey to attract the fans of Manchester United. However, I want to collect the different meaning from the students through this stage.
Secondly, the customers’ attitudes toward to each brand which involve brand awareness, brand preference and brand loyalty. In this part of questions, I tried to know the factors might affect the students when they are purchasing the products. A level of brand recognition that the product could attract the customers’ attention and it is also a concept that measures customers’ knowledge of brand’s existence. Both of Nike and Apple own high market share so that the awareness of them have outstanding ability than other company in the same industry. Next, brand preference should be built strongly that the customers could be persuaded to prefer the specific brand instead of the competitor. If brand preference was contributed successfully, the target customer will choose the brand over other brands in any category. Furthermore, brand loyalty is another important issue must be concerned. For a company, brand loyalty is the ultimate goal; the consumer must perceive that the brand offers the right combination of quality and price. Many factors might influence brand loyalty, such as consumer attitudes, family or peer pressure, and friendship with the salesperson or the company. Therefore, in order to operate the company for long-term business, brand loyalty becomes the necessary issue should not be forgotten. In addition, the three main ideas will further influence the outcomes of next part.
The third part focused on the students’ response of the co-branding products. Even the
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collaboration is created by two well-known and successful companies; they still have the main point to concern. For example, Nike and Apple provide the high price products to the consumers, but they still could create undefeatable performance. Why? That is because they produced the high quality to achieve the consumers’ expectations even more and satisfy the consumers’ demands and purchasing motivations to make the consumers’ payment valuable. For this reason, before Nike launch the products which corporate with Apple, they have attracted the consumers’ attention with high expectation. After the products were launched to the market, the responses of the consumers and potential customers were an important standard to decide them succeed or not. And that was why I designed this part of questions.
The final section was trying to reveal what kind of benefits that Nike and Apple could procure from the cooperation. In 2007,Nike cooperated with Apple to launch a series of products which is called Nike＋. For example, you can grab your iPod nano, iPod touch or iPhone connect the sensor which you have to put it in the Nike＋ shoes. So that, the sensor can record how far you run, how long you take and how many calories you consume. That could be your personal trainer.
The benefits of co-branding could organize into three main points; the first one is extending new customers that Nike is an athletic company and Apple is a technological company which primarily focuses on computer and mobile market. When Nike launch a pair of sneakers with Apple’s technology, the combination might attract the consumers of Apple to notice the sneakers, even purchase it. By contrast, the consumers of Nike might be affected to concern Apple’s products. Secondly, Nike
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could decrease the cost and share the risk. If Nike develops their own technology department, they must spend a lot of time and money to recruit the relative employees to do the research and the consequence could not 100% guarantee will success. So that, they cooperated with Apple which has mature ability to develop high technological products that Nike could decrease the costs and risks. Finally, have much more competitive than the competitors. If Nike and Adidas launch a pair of running shoes which are 99% similar include colour, design and function even the prices are the same, but Nike’s running shoes have special function that I have mentioned at the beginning of the same paragraph which one will the consumers buy who do not have any brand preference and loyalty? I am the typical example for this question. I bought a pair of Nike+ shoes because of they could put the Apple chip inside that I even never used that function.
Findings
The questionnaires were distributed equally to males and females. The respondents were asked about their opinions and ideas of co-branding, the products which were cooperated by Nike and Apple and their thinking about the benefits of co-branding. According to the questions in the questionnaire, we could divide the types of questions into four parts. First of all, there was a majority of respondents (50%) thought co-branding means two brands work together and 30% of students thought sponsorship is the same as co-banding.
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Table1.
Secondly, the following pie chart showed more than a half (60%) of students are the consumers of Nike and Apple.
Table 2.
Thirdly, almost a half (42%) of the respondents receives the latest information of the products from the Internet and 36% of them heard from their friends.
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Table 3.
Next, there were big proportions of consumers will buy any Nike’s (84%) or Apple’s (86%) products in the future. Only few of the students (10%) will not purchase their any of their products.
Table 4.
Next, there was 34% of students have the Nike’s running shoes which could put the Apple’s chip inside already but 7 students did not even know about that.
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Table 5.
Finally, 38% of respondents thought the products of the companies which involve co-branding will become much more competitive than their rivals. And 30% of them agreed that the companies could explore new consumer to concern their products.
Table 6.
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II. Observation
Apart from other methods, such as interview, observation could collect the information directly instead of the official answers. Besides, observation also could save a lot of cost, I just have to enter the shop to observe and record what I want to know. The purposes of I using observation in this case, there were two main things I want to find out in the store.
The first one is the decorations of the store whether to see the labeling and advertisement of the co-branding products easily or not. For example, when the customers enter the shop how could they distinguish the co-branding products among the hundred of the products? To catch the target consumers’ attention is the essential goal of the co-branding products’ decoration.
Secondly, the employees whether have the enough understanding of the products. In order to persuade the consumers purchase the products that the employees should provide the useful information about the products to the consumers. For example, role play could be used in this method; I will pretend the customer who is interested in Nike shoes which could connect to Ipod, to ask for the introduction and instruction from the employee.
Furthermore the results of observation could support a part of the outcome of the questionnaires. In addition, all of the factors that I have mentioned are relative, they are not independent, it is domino effect that the company should concern and
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implement every step carefully or it might affect the ultimate outcome.
Analysis
In this chapter, the results of the questionnaires and observations will be analyzed to discuss. Because of the questions have been designed into four parts, and each part involves different main ideas and relate to different theories. Therefore, the results can be supported and explained in following four sections.
General ideas of co-branding
In this section of questions showed the respondents’ general ideas of co-branding. Because of co-branding involves a lot of meanings, which different people have variety of opinions toward the strategy. But the results revealed, most of people claimed that co-branding means two different brands work together. Nowadays, co-branding has been used widely, such as, the credit card Company corporate with the airline that the card holders will be provided the exclusive benefits when they take the airline, fashionable brands work with mobile companies and the athletic brands cooperate with the 3C company. Even some of the examples, the company just buy their partner’s trademark and put on the products instead of two brands really work together. In addition, some cases show that two companies concretely combine their own technology and technique to provide their customers extra qualities that they can feel the functions from each brand. Therefore, a half of respondents realize the basic
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ideas of co-branding from the examples above.
However, more than a quarter of students (see table 1) agreed that sponsorship is the same as co-branding. As we can see a lot of football teams’ jerseys, that their teams’ names are replaced by other companies, such as, bank, 3C brand and beer...etc. Those companies sponsor the team that they can print their logos on the jersey. Because of football is the most famous and popular sport in the U.K. and the fans will notice not only the players but also the jerseys that the sponsor companies can evaluate their exposure frequency efficiently. Therefore, some of the respondents think sponsorship belongs to a kind of co-branding.
Brand preference/ Brand awareness/ Brand loyalty
Brand preference
In order to operate a business in long-term, except the volume of sales, these three main concepts are essential to a company. In this case, the cooperation of Nike and Apple, the results of questionnaires point out more than a half of respondents are the customers of Nike and Apple (see table 2). Because of the target market of these two companies is young people segment, that both of Nike and Apple have implemented successful strategy, which they have attracted their main customers attentions and acquired higher market share than their competitors. Therefore, in this case, Nike and Apple have higher brand preference than the rivals.
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Brand awareness
As we can see from table 3, the Internet plays an important role in acquiring the latest information, which nearly a half of the students agreed with that. Because of the Internet is the most common and easiest method to know the latest information, even buy the products. Therefore, more and more companies set up their own official websites to provide the online service the customers. In addition, in this case, which
Nike launched the products which can put Apple’s chip inside, that more than 50% of students said they know the information and almost a quarter of them have the products already. The fact showed that the products of Nike and Apple have high brand awareness.
Brand loyalty
Having large volume of sales temporarily is not enough for running a long-term business. Therefore, how to build up brand loyalty is another crucial issue to discuss. In order to attract the customers not only come back constantly in the future but also have higher loyalty to the brand than the competitors. Therefore, the company should provide the customers outstanding tangible and intangible services, such as, the products which can satisfy the consumers’ needs and make them feel they are respected. In addition, there is a large proportion of respondents have mentioned that they will consume any one of Nike’s or Apple’s products in the future, which means Nike and Apple are successful in this section.
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The benefits of co-branding
According to the results of the questionnaires, the answers can be classified into the following two main sections, and the orders are ranked by the numbers of the respondents thought adequately (see table 6).
Much competitive than the competitors
Because of Nike is the only one athletic brand which cooperates with Apple’s technology to launch a series of shoes. Even, the running shoes without the function, which is Apple’s chip, the shoes still can be used as a pair of normal running shoes. However, when the consumers, who are assumed have a I pod or I phone, want to use the function to record their jogging that they only need to buy the Apple’s chip. Therefore, Nike’s series of co-branding shoes provide the addition function than the rivals to enhance their competitive. So that, nearly a half of the students agreed with Nike could evaluate their competitive, which is the most important benefit of co-branding.
Exploring new consumers
Even both of Nike and Apple target their main customers as young people which still can be divided into different segments. For instance, basically, Nike focuses on young people who do sport and Apple emphasizes on the other segment who is willing to try the latest technology. Therefore, the co-branding products of them can attract the new
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consumers from each other to extend their own target market.
Observations
The purposes of observation are the decorations of the retailers’ shop and whether the employees can provide the useful and professional information or not.
Decorations
In order to observe the decorations that I have been to two Nike shops, which locate in London. Because of the size of two shops is different, one is medium and the other is five floors, therefore, the decorations are totally different. The medium shop does not label the co-branding products clearly, that they just gather all kinds of shoes on the stairs and Apple’s chips are placed at the corner of the shop. In addition, the bigger
Nike shop provides a comfortable environment for the customers and classified different products into sections that the consumers can find what they want easily.
The professional knowledge of the employees
Even two shops decorate in huge different layouts, that both of shops’ employees are professional. When I pretend as the customer who is interested about the co-branding products, which are cooperated with Apple, the workers can provide me the useful information. In addition, the employee introduced the product in details, such as, the materials and the functions of each part of the shoes, that I felt my need is respected.
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Therefore, I bought a pair of co-branding running shoes.
Conclusions
During the research process, I found out co-branding is not a simple concept to define. Because of co-branding relates too many different levels and areas. For example, some companies just buy another company’s brand name and print on the products, and some companies involve the design programmes, even contribute the technique to launch the products…….etc. Before I did this research, I did not know that much about co-branding.
At the beginning of term 2, I just decided a topic which I interest in. In fact, the process of the research went better than I predicted. Because of I am a fan of Nike and also interested in Apple. When I was collecting the results and researching the information, I felt enjoyable that I know about Nike and Apple deeper than before. Therefore, I will not regret of choose this topic. However, the main idea will not be changed, but I think the range could minimize to the specific area, such as, focus on sponsorship in football industry, even to a team instead of whole industry.
From deciding the topic to finishing the dissertation, the most difficult part is questions designing. Before I started to do the research, I have set up three main ideas
to find out, which are the general thinking about co-branding, the customers’ attitude toward the brand and the benefits of co-branding. When the questionnaires have been
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collected and the results have been analyzed, I realized the results were not enough to support everything I want to address. In order to submit each part of dissertation, that was totally impossible to add more questions and distribute again. Therefore, I must still finish everything by limited information. In addition, the resources, which I found from the internet, could not be used directly due to different purposes, locations and respondents…etc.
I focus on the young people customers’ ideas and attitudes toward co-branding and the cooperation between Nike and Apple in Exeter. I only found a part of information I wanted. As I have mentioned in previous paragraph, the depth of the questions was not enough to provide all the information I need. Next time, I will distribute a small amount of questionnaires to test the results are adequate or not, to avoid the same difficulties which I had this time.
Recommendations
In this part, I am going to focus on the recommendations for the co-branding strategy between Nike and Apple, and what I have learnt from the process of doing this dissertation, which I can improve for next time.
For the companies
Both of Nike and Apple are the leading brand in their target market and three years
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ago they cooperated to launch a series of products which we never seen before. Even from many angles showed that they made the right decision, there are still two problems that they could improve. However, the following paragraphs point out, which there are two main positive points that I agree with their strategy and two problems should be improved.
Positive:
1. Create demands
The most important and outstanding thing is that Nike and Apple create a new market. Listening to mp3 during jogging has become popular for a long while, but there was no any company thinking about connects them together. Until Nike and Apple launched a series of products, they create brand new products to create a market, which there was no one done that combination before. Put the right product to the right people is not enough, that a new market should be made by a new product to create customers’ demands. However, the cooperation between Nike and Apple is a successful case to demonstrate the concept above.
2. Decrease the cost
Both of Nike and Apple made the right decision to corporate together, that they are the leading brands in their own target markets, which they have some similar features of their brands, such as, high brand awareness and market share. However, the mutual
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goal of them is young people. Therefore, they can well use each other’s advantages to extend themselves. In this case, Apple is good at providing high technological electric products, which Nike lacks for. On the other hand, Nike is in top place of athletic brand, which is a totally different industry as Apple. So that, they corporate with each others’ techniques to save a lot of cost on developing themselves.
Because of the two main co-branding benefits above, that I strongly agree with the alliance between Nike and Apple. Therefore, they should keep cooperating with other companies to launch more this kind of co-branding products. Even though, the facts of questionnaires showed the cooperation was quite successful, that there are still two main problems, which are shown as following, can be improved.
Negative:
1. Advertisement
According to the results of the questionnaires, almost a half of young people (see table 5) claimed that they did not know about information about co-branding between Nike and Apple, in addition, 7 of them were not even interested to try the products. Consequently, Nike and Apple should introspect themselves to solve the problem. However, they could invite some athletic celebrities to represent Nike+, which is the series of co-branding products between Nike and Apple. For example, Nike invited Ronaldinho, who is one of the famous soccer players from Brazil, to represent their soccer products. This advertising strategy can not only increase the exposure
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frequency of the products but also impressive the consumers.
2. Layout of the shop
The decoration of the products in the shops in another factor may affect the consumers’ attentions. When a customer enters the shop, the co-branding shoes should be placed in the obvious positions among hundred pairs of shoes, that the products can be noticed easily. As I have mentioned in Analysis, the medium Nike shop did not place the co-branding shoes obviously, in fact, the appearance of the running shoes, which can be put Apple’s chip inside, is not huge different than the normal Nike’s running shoes. Therefore, the decoration can help the products be distinguished from other shoes. In addition, even the products combine Apple’s technology, that the co-branding shoes can be placed in Apple’s shops as well. Among the shop which is full by the laptops, mobiles, mp3 and computers, a pair of Nike shoes will become much conspicuous.
For the procedure of dissertation
During the process of doing the research for dissertation, there were many obstacles which I have to overcome. Such as, deciding the topic, questions designing, finding academic references and analyzing the information. In fact, at the beginning of term 3, I was struggling when I have to decide the topic for dissertation. Because of this is my first time to complete a dissertation and I did not acquire many help from our teacher, which I just brainstormed myself to think about a topic that I did not know whether
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the topic was adequate or not. Afterwards, when I came back from Easter break, we were assigned to a tutor and six people in a group. During the tutorials, I can share my ideas to my tutor and he will give me the suggestions to guide me in the right direction. However, the following two main problems point out what I have leant and how can I be better for next dissertation.
1. Questionnaire
The questionnaires were distributed 50 copies to the respondents this time. Because of the time limitation and cost, which I decided to collect the information from these 50 respondents to represent the majority customers’ opinions. However, if I have next dissertation, in order to collect much accurate results, that I will enlarge the sample size from 50 to 100 even more.
In addition, the range of age could be wider. This dissertation I focused on young people customers, which the range was from 21 to 30 years old. In fact, the thinking of young people was quite similar that I could compare the different opinions with the same topic between two different age groups. Because of the life experience and education levels, they might have totally different opinions toward co-branding, that I could collect some interesting results to analyze.
Finally, the questions could be designed much deeper to collect as much as possible useful information. Before I designed the questions, the purposes of the dissertation should be classified. Therefore, the results of the questions can provide the right
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information to support my content.
2. Interview
As I have mentioned at the beginning of this section, co-branding involves too many areas. Therefore I should arrange the interviews with the marketing professors from business school or experienced managers to define the meaning of co-branding. As we can see from table 5 and 6, the results were analyzed into four different ideas only from 50 respondents’ opinions. Most of the respondents are students, that their opinions only can be used as general customers. Consequently, I should arrange the interviews to acquire some professional ideas and experiences.
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Index
Questionnaire
I am a student on the Graduate Diploma Programme at Into university of Exeter. I am carrying out some research about Co- branding among different industries. Please help me by completing this questionnaire. Thank you
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Date:
Gender: □ Male □ Female
Age: □15~20 □21~25 □26~30 □30~35 □36~40 □40+
1. What do you think about co-branding?
_________________________________________________________________
2. Do you know any example about co-branding?
□Yes example:___________________ □No
3. Are you the customer of Nike or Apple?
□Nike □Apple □Both □None of them (skip question 5)
4. How do you know the latest information about their products?
□TV Advertisement □Internet □Store
□friends □other____________
5. If you are the consumer of Nike or Apple or Both. Will you buy or notice any products of them which were cooperated with another company?
□Yes □No
6. Will you purchase any Nike’s product in the future?
□Yes (skip question 8) □No (skip question 7)
Dissertation Group 3
Student ID No.590053276
Into No.00500995
7. Why you will buy any Nike’s product in the future?
□comfortable □fashionable □reasonable price □good quality
□other__________
8. Why you won’t buy any Nike’s product in the future?
□uncomfortable □not fashionable □unreasonable price
□poor quality □other__________
9. Will you purchase any Apple’s product in the future?
□Yes (skip question 11) □No (skip question 10)
10. Why you will buy any Apple’s product in the future?
□good function □fashionable □reasonable price □good quality
□other__________
11. Why you won’t buy any Apple’s product in the future?
□poor function □not fashionable □unreasonable price
□poor quality □other__________
12. How do you think about the following statement?
In 2007,Nike cooperated with Apple and it called Nike＋. You can grab your iPod nano, iPod touch or iPhone connect the sensor which you have to put it in the Nike＋ shoe. So that, the sensor can record how far you run, how long you take and how many calories you consume. That can be your personal trainer.
□I had them already. □Fantastic. I would love to try.
□Really? I don’t know that. □other_________________________
Dissertation Group 3
Student ID No.590053276
Into No.00500995
13. What kind of benefits will happen to the co-branding companies?
□ exploring new consumers
□ decreasing the cost
□ sharing the risk
□ much competitive than competitors
_____________________________________________________________________
Thanks for your completing.
Dissertation Group 3
Student ID No.590053276
Into No.00500995
Process log
Week commencing
08/02/10
In this week, I was searching the topic which I am interested. During the deciding process I have discussed with the teachers. Finally, co-branding issue became my final decision as the topic of the dissertation.
15/02/10
During this week, I was figuring out how to write the proposal. Even this part is formative, which the proposal could be the structure to refer in the future.
Hand in project proposal
22/02/10
After submitted the project proposal, literature review was the next section have to work on. Before start writing literature review, I have to find a lot of helpful, academic and relative references, such as journals, magazines, the internet and books.
01/03/10
During the week, I was reading the references, which I have found last week. There were a lot of marketing books and journals, in order to put the helpful references in the content that I have to find the topics which were relative toward co-branding. After find out the relative references, I organized the structure of literature review.
08/03/10
At the beginning three days of this week, I finished the literature review. Afterwards, I have to prepare the presentation of my project proposal, which I need to explain all the details about my plan of the dissertation.
15/03/10
The two main things in this week were handing in literature review and having assessed oral presentation. After these two, I could have a break time for a week and start designing the questionnaire. I spent 4 days to complete the questions.
Dissertation Group 3
Student ID No.590053276
Into No.00500995
05/04/10
After the easter break I was assigned to a group with a tutor. This week I had an individual tutorial with my tutor. We discussed about my plans of completing dissertation. In addition, I distributed my questionnaire on Monday and collected them by the weekend. During the weekend, I was organizing the results and doing the primary research.
12/04/10
In this week, I have to hand in primary research, which I spent three days to finish. And start analyzing the results of the questionnaires.
19/04/10
After the analysis of the results, I have to make the recommendation for the companies and how can I improve my dissertation.
26/04/10
This week I have to submit analysis, conclusions and recommendations. After that, I almost finished the dissertation. That I have to double check the content and review the previous sections.
03/05/10
In this week, I finished the process log to explain I have done every week and finished the abstract, introduction and bibliography.
07/05/10 ~ 23/05/10
Because of my personal reason, I went back to my country.
04/06/10
Double checked all chapters and printed to hand in final dissertation.
