Piggyback marketing

Piggyback marketing
See also
Growth company Anonymous Trading Direct distribution Turnkey business Strategic Buyer Market expansion Skimming pricing strategy Direct exporting Low cost strategy

Piggyback marketing is a strategy where a company associates its brand or product with an already established brand or product in order to gain exposure and credibility. This can be done by partnering with a complementary brand, sponsoring events or causes, or even by simply being featured in the same publication or on the same TV show as a well-known brand. The idea is that the established brand will "piggyback" the newer brand to its target audience, helping the newer brand to gain visibility and credibility. This strategy can be an effective way for small or new companies to gain exposure in a crowded market.

Examples of piggyback marketing

There are many examples of piggyback marketing, some of which include:

• A small clothing company partnering with a popular fashion designer to create a limited-edition clothing line.
• A new energy drink company sponsoring a professional sports team in order to gain exposure to the team's fans.
• A book publisher launching a new author by bundling their book with a best-seller of a well-known author.
• A new beauty brand appearing in the same magazine as a well-established beauty brand.
• A new technology brand being featured in the same event as a well-known technology brand.
• A new car brand appearing in the same movie or TV show with a well-known car brand.
• A new restaurant chain partnering with a popular food delivery app to offer discounts and promotions to attract customers.

These are a few examples but there are many ways piggyback marketing can be done. The key is to find a complementary brand or product that already has a strong following and aligning with it to gain exposure and credibility.

Piggybacking in international business

Piggybacking in international business refers to a strategy where a company enters a new market by leveraging the existing infrastructure, distribution channels, or reputation of another company. This can include forming partnerships or joint ventures with local companies, licensing agreements, or even acquiring established businesses. The idea is to take advantage of the established company's existing resources, relationships, and knowledge of the market to reduce the risks and costs of entering a new market.

There are several benefits to using piggybacking in international business, including:

• Reduced Risk: By partnering with or acquiring an established company, a new entrant can reduce the risks associated with entering a new market, such as lack of knowledge about the local market and regulations.
• Cost Savings: Piggybacking on an established company can also result in cost savings, as the new entrant can take advantage of the existing infrastructure, distribution channels, and relationships.
• Increased Credibility: By partnering with or acquiring an established company, a new entrant can gain credibility and trust with local customers and partners.
• Speed to Market: Piggybacking on an established company can enable a new entrant to enter a new market more quickly than if they were to start from scratch.

However, there are also limitations to consider when using piggybacking in international business such as:

• Limited control: The new entrant may have limited control over the established company's operations and may not be able to fully implement its own strategies and plans.
• Dependence on the established company: The success of the piggybacking strategy is heavily dependent on the performance of the established company.
• Limited differentiation: The new entrant may struggle to differentiate itself from the established company in the market.
• Cultural and operational differences: There may be cultural and operational differences between the new entrant and the established company that can make it difficult for them to work together effectively.

Overall, piggybacking in international business can be a powerful strategy for reducing the risks and costs of entering a new market, but it's important to carefully evaluate the potential benefits and limitations before implementing this approach.

Main rules in piggyback marketing

There are a few key rules to keep in mind when implementing piggyback marketing as a strategy:

• Make sure the established brand is a good fit: It's important to choose an established brand that complements your own and has a similar target audience.
• Get permission: Make sure to obtain permission from the established brand before using their name or image in your marketing materials.
• Be authentic: Be authentic and transparent in your marketing efforts. Don't make false claims or exaggerate the relationship with the established brand.
• Be respectful: Show respect for the established brand and their audience by aligning your message and tone with theirs.
• Be clear about your own brand: Make sure your own brand is clearly visible and differentiated from the established brand.
• Be timely: Piggyback marketing is most effective when it is timely and relevant to the established brand's current promotions or events.
• Have a clear objective: It's important to have a clear understanding of what you hope to achieve through piggyback marketing and to measure the results of your efforts.

By following these rules, piggyback marketing can be a cost-effective way to gain exposure and credibility for your brand, while also building a strong relationship with the established brand.

Benefits of piggyback marketing

There are several benefits to using piggyback marketing as a strategy, including:

• Increased Visibility: By aligning with a well-established brand or product, a company can gain exposure to a larger audience, increasing the chances of attracting new customers.
• Credibility: Piggybacking on an established brand can also help a newer brand establish credibility and trust with consumers.
• Cost-Effectiveness: Piggyback marketing can be a cost-effective way for a small or new company to gain exposure, as the costs of reaching a larger audience can be shared with the established brand.
• Enhanced Brand Image: By associating with a well-known brand, a newer brand can improve its image and reputation in the eyes of consumers.
• Increased Sales and Revenue: By reaching a larger audience, piggyback marketing can lead to increased sales and revenue for a company.
• Easy to Implement: Piggyback marketing is relatively easy to implement and doesn't require significant resources compared to other marketing strategies.
• Flexibility: Piggyback marketing can be flexible as it can be done through many different methods such as sponsorships, partnerships, collaborations, etc.

Overall, piggyback marketing can be an effective way for small or new companies to gain exposure, establish credibility, and increase sales, by leveraging the reputation and reach of established brands.

Limitations of piggyback marketing

While piggyback marketing can be an effective strategy, there are also limitations to consider:

• Limited Control: By piggybacking on an established brand, a company may have limited control over how its brand is perceived and presented to the audience.
• Dependence on the established brand: The success of piggyback marketing depends heavily on the reputation and popularity of the established brand. If that brand's reputation deteriorates, it can have a negative effect on the piggybacking brand.
• Limited differentiation: By aligning with an established brand, a newer brand may struggle to differentiate itself and establish a unique identity.
• Risk of being overshadowed: A newer brand may be overlooked or overshadowed by the established brand, resulting in limited exposure and impact.
• Cost: Piggyback marketing can be costly, especially if the established brand charges high fees for partnerships or sponsorships.
• Audience mismatch: Piggyback marketing could backfire if the established brand's audience is not the same as the piggybacking brand's target audience.
• Limited long-term impact: Piggyback marketing can bring short-term benefits, but it may not have a significant long-term impact on a company's overall growth and success.

It's important to weigh these limitations when considering piggyback marketing as a strategy. It is important to consider the costs and benefits of piggybacking on a particular established brand and whether it would be the best approach to reach your target audience and achieve your marketing goals.

References

• Albaum G., Duerr E. (2008)., International Marketing and Export Management, Pearson, Anglia, pages 318-319
• Brady D. L. (2010)., Essentials of International Marketing, Routledge, Londyn, page 190 Essentials of International Marketing
• Hollensen S. (2007)., Global Marketing: A Decision-oriented Approach, Prentice Hall, Anglia, pages 316-317 Global Marketing: A Decision-oriented Approach
• Hollensen S. (2008)., Essentials of Global Marketing, Prentice Hall, Anglia, pages 221- 22 Essentials of Global Marketing
• Kurtz D. L. (2015)., Contemporary Marketing, Update 2015, Cengage Learning, Canada, page 473
• Linton I. (2012)., The Secrets of Success in Marketing: 20 ways to accelerate your marketing performance, Pearson, Wielka Brytania, part 2
• Zikmund W. G., Babin B. J. (2012)., Essentials of Marketing Research, Cengage Learning, Stany Zjednoczone, page 108