Assessing the Influence of Modena – Marvel Co-Branding on the Young Segment: A Comprehensive Evaluation
Bagus Yudho Prastowo1*, Yudo Anggoro1, Jacob Silas Mussry2
1School of Business Management, Institut Teknologi Bandung, Jakarta, Indonesia
2MarkPlus, Inc., Jakarta, Indonesia
*Corresponding Author: [email protected]
Received: 25 April 2023 | Accepted: 20 June 2023 | Published: 30 June 2023
DOI:https://doi.org/10.55057/ajrbm.2023.5.2.3
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Abstract: This study aims to evaluate the impact of the co-branding partnership between Modena and Marvel on the young segment in Indonesia. With a rapidly growing household consumption rate and a thriving household appliances market in the country, understanding the effects of co-branding on consumer perceptions and collaboration objectives is crucial.
Through a combined method approach, this research explores the main brand image and co- brand image and assesses their influence on brand recognition, brand image, value addition, customer base expansion, market diversification, and customer perceptions. The study reveals that the Modena-Marvel co-branding partnership has positively impacted Modena's brand awareness, image, and engagement among the younger target market. The collaboration is viewed favorably by customers, leading to increased brand engagement, product sales, and market expansion. These findings highlight the strategic benefits of targeting the young segment and emphasize the significance of brand recognition, customer perception, and market expansion in driving the success of co-branding initiatives.
Keywords: Co-Branding, Young Segment, Demographic Bonus
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1. Introduction
Indonesia’s Demographic Bonus
Demographic bonus, also known as demographic dividend, refers to a period in a country's economic growth when the working-age population (ages 15-64) is larger than the non- working-age population (under 15 and over 65), leading to an increase in productivity and economic growth. During this period, there are fewer dependents per worker, allowing for more resources to be devoted to investment and economic growth. This demographic bonus typically occurs after a decline in fertility rates and a decrease in child mortality rates, leading to a temporary increase in the proportion of the working-age population relative to the dependent population.
The demographic bonus is considered a unique opportunity for countries to accelerate their economic growth and development, but it is a time-limited opportunity. If appropriate policies are not implemented to leverage the demographic bonus, it can also be a missed opportunity for economics. The demographic bonus in Indonesia began in the late 1990s, and it is projected to continue until 2035. This period is characterized by a larger proportion of the population in the working-age group (ages 15-64) compared to the non-working-age group (under 15 and over 65). In figure 1, the population growth reaches its steepest incline up to 2030 and the
growth starts to slow down soon after and getting almost stagnant growth after 2035. This demographic shift is a result of a decline in fertility rates and an increase in life expectancy, leading to a larger proportion of the population entering the workforce.
Figure 1: Development of the Productive Age Population in Indonesia 2015-2045 (Million People) Source: Badan Pusat Statistik, 2023
The Business Opportunity
An expansive pyramid is a type of population pyramid that has a broad base indicating a high proportion of young people and a narrower top indicating a lower proportion of older people.
In other words, it is a pyramid-shaped graph that shows a population with a high birth rate and a relatively short life expectancy. Expansive pyramids are also referred to as "youthful"
pyramids.
Figure 2: Indonesia Population According to Age and Gender, 2017 (Million People) Source: Databoks, Katadata.co.id, 2017
The above pyramid figure indicates a huge opportunity for businesses in Indonesia to start to focus in tapping younger segment, which eventually aging and become the decision maker in both influencing and purchasing behaviour. If we look at above figure, the age bracket of 10-
Expansive
Pyramid
14 to 20-24 total 70 million in 2017 will age 20-34 by 2027. The 70 million new market will become the potential market for households and home appliances in 2027.
The above-mentioned opportunities and the upcoming new market had become the main attention and goals for MODENA Group, one of the market leaders of home appliances in Indonesia. Ever since year of 2012, MODENA Global had more focused on conducting research and insights finding to better understand this young segment insights and aspirations.
The fact findings were taken in several developing countries which possess huge market size and upcoming demographic bonus of population mostly in Asia and Africa such as Philippines, Indonesia, India, Nigeria, and Kenya. However, in this thesis, the writer will be focusing on the strategy which has been conducted by MODENA Indonesia.
According to a report by McKinsey & Company, consumer spending in Indonesia is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2018 to 2030. The report also notes that the middle class is expected to double in size from 74 million in 2018 to 141 million in 2030, which is likely to drive consumer spending growth. The growth of the market can be attributed to factors such as increasing urbanization, rising disposable income, and the availability of financing options. The report also highlights that the refrigeration appliances segment is expected to hold the largest market share during the forecast period, followed by the cooking appliances segment. The report further states that the online sales channel is expected to witness significant growth in the market, owing to the increasing adoption of e- commerce platforms in Indonesia.
Published by Euromonitor International (September 2021, Euromonitor International, "Home Appliances in Indonesia"), here are some more details on the growth of spending on home appliances in Indonesia:
i. Refrigeration Appliances: Refrigeration appliances such as refrigerators and freezers are the largest segment in the major appliances category, accounting for around 46% of retail sales in 2020. Sales of refrigeration appliances in Indonesia grew at a CAGR of 3%
between 2015 and 2020.
ii. Laundry Appliances: Laundry appliances such as washing machines and dryers are the second-largest segment in the major appliances category, accounting for around 30% of retail sales in 2020. Sales of laundry appliances in Indonesia grew at a CAGR of 6%
between 2015 and 2020.
iii. Cooking Appliances: Cooking appliances such as ovens, stoves, and microwaves are another important segment in the major appliances category, accounting for around 18%
of retail sales in 2020. Sales of cooking appliances in Indonesia grew at a CAGR of 4%
between 2015 and 2020.
iv. Other Appliances: Other appliances such as dishwashers, air conditioners, and vacuum cleaners are smaller segments in the major appliances category, but sales of these appliances have also been growing in Indonesia.
These data showed a huge size of current and potential market size in Indonesia, especially due to demographic bonus which now being underway. To optimize the demographic bonus in the home appliances market in Indonesia and capture a larger market, Modena considered the following alternative of strategies:
i. Personalization and customization: younger consumers in Indonesia are increasingly looking for personalized and customized products and experiences. Modena can offer personalized product recommendations, customized products, or personalized shopping experiences to attract and retain younger consumers.
ii. Innovation and differentiation: by introducing innovative and differentiated products, Modena can attract consumers and stand out from their competitors. For example, offering smart home appliances that are energy-efficient and eco-friendly can appeal to Indonesian consumers who are increasingly concerned about the environment.
iii. Omnichannel retail strategy: an omnichannel retail strategy can help to reach a wider consumer base in Indonesia. This includes having a strong online presence as well as offline channels such as brick-and-mortar stores or partnerships with local retailers.
iv. Pricing and financing options: offering competitive pricing and flexible financing options can help to tap into the large middle-class population in Indonesia, who are looking for affordable and accessible home appliances.
v. After-sales service: providing excellent after-sales service can help build trust and loyalty among consumers in Indonesia. This includes offering warranties, repairs, and customer support services to ensure customer satisfaction.
This intense and profound research found out most of the youngsters choose to act and behave based on specific purpose modeled by their aspirational figure(s). According to the insights of the research, they possess their very-own “superhero” who was their ideal personification who have very strong relations to become their role model and/or aspirational purpose of life. What the research found unique was that the figure(s) mostly were of factious impersonates rather than real-person in-appearance. This is due to sincerity of fiction superheroes who could act noble things and in super ideal “utopia”, rather than real-world role model figures who sometimes were not as ideal as their expectations.
The superhero’s strong motives and aspirations of the youngsters were then translated into collaborations with Marvel Cinematic Universe (MCU) which then acclaimed by Modena HQ to become the “perfect personification of the youngsters” who believe in a good cause of Modena brand. The co-branding Modena x Marvel was the world’s first collaboration between MCU and home appliance brand and believed to be able to leverage both brands to further penetrate younger segment.
Acquired by the Walt Disney Company in 2009, Marvel has grown into one of the largest and most successful entertainment companies in the world which created almost-real superheroes figures which all remain relevant and contextual towards all-age segment. With its familiarity among all-age segment, Marvel was considered the perfect partner to become the “liaise” to link Modena brand to Marvel’s die-harder fan base which is mostly come from young (or young-at-heart) segment.
Research showed Marvel fans tend to spend a lot of money on movies, comics and movie character-related products and merchandise. Many fans are willing to invest in various forms of media, limited product & merchandise, and experiences related to Marvel's popular characters and stories.
2. Full Paper Template
Business Issue: Modena Indonesia
Modena Indonesia has established itself as a leading brand in the home appliance industry, providing high-quality, innovative products that enhance the modern lifestyle. Modena's commitment to quality, innovation, and customer satisfaction has propelled the brand to a prominent position in the home appliance industry. The company's dedication to creating
functional, stylish, and durable products has made it a trusted choice for consumers across Indonesia.
Modena Indonesia has significantly influenced the home appliance market in Indonesia. The brand has set a high standard for its competitors, driving the industry to develop better products and invest in research and development. Modena's success in the Indonesian market has also contributed to the growth of the overall home appliance sector, as the demand for reliable, high- quality appliances continues to rise in the country.
The Drawbacks
However, due to its superfine quality of the products, the exclusive and expensive value perception followed the reputation. All the red carpets were turned around in the late 2000’s, especially during pandemic Covid-19. Average growth (sales amount and quantity) tends to become stagnant and even pacing down in the last 2019 up to now.
Figure 3: Sales Volume, Finished Goods, Cooking Category (in unit) Source: Modena, 2022
The mature age bracket (> 30 years old) remained loyal to the brand, but the basket size was diminishing. Average spending per transaction was 1-2 types of products, and mostly of the most durable product, such as freestanding cooker, oven, or large freezer which have small turnover. On the contrary, small appliances category experienced promising growth of basket size and volume, especially among younger segments (millennials and Gen-Z, 18-35 years old).
Even though lower in amount, basket size quantity showed quite amazing numbers of averaged 2-3 products per transaction.
Figure 4: Average Transaction Value, 2018 – 2020 Source: Modena, 2022
If we look at the Figure 4, the average transaction value (ATV) of White Goods (big size, major appliances) tends to be flat linear on all age bracket (shown by orange line). Above >30 years old bracket showed diminishing average transaction value (starting 2019). On the other hand, the ATV line of SDA (small domestic appliances, shown by blue line) showed high growth among <30 years age bracket. These figures proved that small appliance turned to become the entry level products for the younger segment to purchase Modena products, which were mostly perceived as Mom’s and Pop’s products. However, the overall contribution from this segment currently was relatively small in terms of sales revenue due to:
i. Mostly Millennials & Gen-Z shop via online marketplace or e-commerce platform, which have not been favourable as these channels were of small contributing margin (higher logistic cost, higher listing fee, higher marketing cost, mostly only cover big cities).
ii. How-low-can-you-go price, which made unfavourable competitive situation among small appliances players.
iii. Millennials & Gen-Z have platform loyalty (which constantly gives perks and privilege for stickiness factors) instead of brand loyalty for homogenous products like small appliances. They’re loyal to the perks & benefits, not the Brand/Product.
Above business issues can be better pictured by below diagram:
Figure 5: Rich Diagram Source: (Prastowo, 2022)
According to the rich diagram above, the issues that are the background of this study are as follows:
i. Modena’s strong brand perception as premium brand with strong user base of mature segment (or called “Pop’s and Mom’s brand”) which cause a relatively low brand preference and a serious barrier-to-entry for younger target segment.
ii. The product mix and design have been mostly created for the established economy segment which is shown by the big in size and built-in design products. The large size of the products somehow also prevents the young segment to purchase as usually they have a relatively small house to live.
iii. Channel mix which > 80% contribution are of conventional channels and limited penetration to major cities and business district areas.
iv. High price point with an average price of Modena products of more than IDR 3.7 million and Modena's product promotion strategy that is still conventional.
These issues were basically become barrier factors to enter and tap younger segment. And given the result of the thorough omnibus research which had been conducted by Modena Global HQ and Indonesia, the Personalization and Customization (P&C) strategy was chosen to become the strategy to be implemented in Indonesia.
Research Methodology
The study was causal in nature and was aimed at evaluating the impact of main brand image and co-brand image. The study was conducted after identifying suitable corporate data using the concept of brand extension and co-branding. A mix of quantitative and qualitative research will be used to determine consumer perception of the co-brand image and its impact on the main objective and purpose of the collaborations. Purposive sampling technique was used to identify responses for the study and a sample size of minimum 100 respondents was taken to conduct the study.
In this study, the data is divided into two, namely primary data and secondary data. As for obtaining primary data in this study using deployment online questionnaire and FGD.
Questionnaire respondents will consist of a minimum of 100 people who will be taken from the younger segment in Jakarta & big cities aged between 20-40 years. The FGD (offline and online discussion) and In-depth Interview (IDI) were held at designated venues, and respondent structure consist of mix of consumer profile:
i. 40% male and 60% female
ii. Age ranges mostly from 20-40 years old (offline-intercept type of recruitment enable researcher to get age-bias because the respondent was sometimes looked younger or older than the real age)
iii. A-B+ SES class, Urban
Table 1: FGD (offline and online discussion) Marvel
Age Modena User Non-Modena User Non-Marvel User
20 - 30 1 Group 1 Group 1 Group
31 – 40 or above 1 Group 1 Group 1 Group
The Marvel – Modena user divided into 2 sections:
i. Existing Modena user: currently and/or once purchased and/or utilize Modena product(s);
ii. Non-Modena user: competitor’s user and/or never purchased and/or utilized Modena product(s) but decided to buy/utilize Modena-Marvel product(s).
Non-Marvel user means never buy or utilize any Marvel stand-alone-brand nor Marvel co- brand either. Each group consists of 4-5 respondents.
Table 2: In-depth Interview
IDI Traditional Modern
20 - 30 2 3
31 – 40 or above 1 1
In-depth interview respondents were collected via intercept methods on various channels.
Traditional channels are offline outlets which are run in conservative operations method, simple display showcase (sometimes display do not present) and owned and operated by sole proprietary owner. Modern channels on the contrary are designed to provide enhanced consumer experience, exclusive and ample product display, modern trading terms and digitalized store POS system as well as knowledgeable sales advisors.
Secondary data collection is carried out to support primary data. Secondary data which is derived from:
i. Company’s performance data: sales matrix and quantity report, distribution and spreading report, inventory turnover and DOI report, sell-in and sell-out report (quantity, pcs).
ii. Desk research: exploring via the website of Marvel worldwide performance report, competitor’s co-brand references, and consumer preference data report.
This research used mixed quantitative and qualitative analysis. For quantitative research, the writer used descriptive analysis methods to collect quantitative data on brand awareness among the younger target market segment before and after the co-branding partnership between Modena and Marvel. Utilizing Likert scale questionnaire, respondents are asked to rate their level of agreement or disagreement with a series of statements using a predetermined scale,
which is assigned a numerical value, usually ranging from 1 to 6 with higher values indicating greater agreement or intensity of the response.
To justify quantitative data, the research will be followed through qualitative analysis which was done via Focus Group Discussion and In-depth Interview method which analysis can focus on identifying themes related to brand awareness among the younger target market segment.
Focus groups can also be used to explore why the co-branding partnership between Modena and Marvel is (or not) appealing to the younger target market segment. The focus group discussions can be analysed using content analysis to identify themes and factors related to the partnership's appeal.
The In-depth interview can help the researcher gather rich qualitative data that helps analyze the impact of co-branding on various dimensions, including consumer perceptions, brand equity, consumer behavior, and brand image transfer. These insights can complement quantitative data and provide a comprehensive understanding of the effectiveness and implications of co-branding strategies.
Literature Review
Co-Branding: The Definitions and Impact
According to Philip Kotler (2010: 322) (Pratama et al., 2017) co-branding is two or more brands that are known to be combined in an offer, where each other strengthens each other and hopes to get the attention of new consumers. According to (Washburn et al., 2000) (Pratama et al., 2017) “Co-branding is a win strategy for both co-branding partners regardless of whether the original brands are perceived by consumers as having high or low brand equity”.
Based on (Besharat & Langan, 2014; Kumar, 2005; Venkatesh, Mahajan, & Muller, 2000) co- branding involves collaboration of two or more brands in introducing a new product (Nguyen et al., 2020). For the example, Nike Plus Sports Kits by Nike and Apple, Lexus Coach Edition, Apple iMac with Intel Core Duo Processor, Betty Crocker’s brownie mix with Hershey’s chocolate syrup, and Kellogg Pop-tarts with Smucker’s fruit (Nguyen et al., 2020). According to Rao dan Ruekert (1994), a dominant view in the co-branding literature adopts an information economic perspective, taking co-branding as a signal of quality (Nguyen et al., 2020).
Based on the definitions from some of the experts above, it can be concluded that co-branding is a combination of two or more brands to strengthen the brand so that it gets the attention of new consumers.
According to Dickinson and Barker (2007:276) (Pratama et al., 2017) there are five dimensions of Co-branding:
i. Familiarity
ii. Product fit/Co Brand Match iii. Reputation
iv. Attitude toward co-branding v. Trust
Until now, many companies are trying to give more attention to the formation of brand image.
Brand image can be used as a reference by consumers in providing information about brands or products offered by a company. In creating a brand image, it is a challenge for the company because its formation cannot be done in a short time. The brand image is formed through a complex process involving companies and consumers. According to (Shimp, 2007:38)
(Pratama et al., 2017) brand image is based on various interests developed by consumers over time.
Co-branding is an innovation that has its own uniqueness. This is one way to increase brand influence, enter new markets, reduce costs through economies of scale and refresh brand image.
Co-branding is an old phenomenon in the world of marketing, where two or more companies join forces and carry out all kinds of activities to provide added value to the products resulting from the co-branding.
Figure 6: Research Paradigm Source: (Pratama et al., 2017)
Considering both the positive and negative impacts of co-branding, it's essential for brands to carefully evaluate potential partners and ensure their values, target audiences, and goals are aligned before entering a co-branding partnership. This will help maximize the benefits of co- branding while mitigating potential risks. By studying these resources, we can better comprehend the risks and challenges that may arise in co-branding collaborations and implement strategies to mitigate them effectively.
Figure 7: Modena x Marvel Launching Event Source: Modena, 2021
Conceptual Framework
In this conceptual framework, the co-branding partnership between Modena and Marvel serves as the independent variable, while the appeal to the younger segment and purchase intention represents the dependent variables.
The mediating variables include brand awareness and perceived value, which may be influenced by the co-branding partnership.
Figure 8: Conceptual Framework
Key Takeaways from the Analysis
Based on the analysis from the above quantitative and qualitative research, the writer can highlight positive impacts result from the co-branding between Modena and Marvel as follows:
i. Brand Recognition and Awareness: Co-branding with Marvel, a well-known and globally recognized brand, likely boosted Modena's brand awareness. This association could also have drawn the attention of Marvel fans who may not have previously been aware of or interested in Modena's products.
ii. Brand Image and Perception: Association with Marvel, a brand synonymous with creativity, excitement, and high-quality entertainment, could enhance Modena's brand image. This positive perception could influence potential customers' purchasing decisions.
iii. Value Addition: The integration of Marvel-themed designs and branding into Modena products might have added perceived value to these items, making them more appealing to consumers and potentially justifying a higher price point.
iv. Shared Customer Base (expanded market reach): The collaboration potentially allowed Modena to tap into Marvel's extensive and dedicated fan base. This cross- pollination of audiences can result in increased customer engagement and potential sales.
The partnership potentially introduces Modena products to Marvel's fanbase, extending its market reach.
v. Diversification: The co-branding initiative also allowed Modena to diversify its product range, offering something unique in the market. This kind of differentiation can help a brand stand out and attract new customer segments.
vi. Shifted Customer Perceptions: The association with a beloved brand like Marvel can positively influence how customers perceive Modena. Consumers who view Marvel positively are likely to transfer some of those feelings to Modena, improving its brand image.
However, several important observations stand out that warrant further consideration:
i. Product Sizing: The larger product size seems ill-suited to meet the preferences of the young demographic. This suggests that future product development may need to be more attuned to the lifestyle and space constraints often associated with this age group.
ii. Product affordability: The current pricing strategy appears to be a deterrent for the younger segment, who find it less affordable. A review of the pricing policy might be necessary to enhance market penetration among this demographic.
iii. Product Visibility: Enhancing product visibility can significantly impact consumer awareness and subsequent purchase decisions. The marketing strategy should incorporate methods to increase the visibility of these co-branded products, be it through in-store placements, online promotions or innovative advertising.
iv. Marketing Communication: The conventional marketing channels used have not maximized reach to potential customers, especially younger ones who are more digitally oriented. A shift towards more contemporary, digital communication channels might better engage the younger audience and make the branding initiative more effective
v. Distribution Channel: Conventional offline traditional outlets and showrooms might also result in similar impact as they do not fit to the young segment ecosystem and preferred more casual and pop-up outlets to purchase.
Business Solutions
Here are several business solutions to increase brand preference and address the needs of the young segment for the collaboration products between Modena and Marvel:
i. Omnichannel: introducing Modena and Marvel collaboration products in both offline and online spaces/channels that are popular among the young segment, Modena can increase awareness and create opportunities for the target audience to discover and engage with the products. To introduce Modena and Marvel collaboration products to the young segment, it's important to strategically place them in locations that are frequently visited by the target audience.
ii. Products: developing collaborative products that are more attractive and acceptable to the young segment, such as carrying out special branding by creating a new identity for the collaboration product so that it can attract the interest of the young segment to obtain the product but does not eliminate the identity of Modena itself. Doing the branding must also convey clear product values and benefits. By combining the advantages of Modena and the attractiveness of Marvel, it will provide a unique experience and be able to meet the needs of target consumers. In addition, by developing collaborative products with attractive branding, clear value proposition, and relevant delivery channels, Modena can capture the attention and interest of the young segment. This will create an emotional connection and drive their desire to obtain and recommend the collaboration products to others.
iii. Price and Promotions: to reach the young segment, Modena is required to make their collaboration products more value for money. This is because not all young segments have sufficient income to own Modena products. So that several business solutions are needed for this, such as providing flexible payment options for consumers who want to buy these products, making special promotional offers and discounts and coupons for consumers who want to buy these collaboration products, especially for segments that have limited income and developing product variants with wide range of prices in their range of collaboration products. Modena can make their collaboration products more affordable and value-oriented for the young segment. This will enable a larger portion of the target market to purchase and enjoy the benefits of the Modena and Marvel collaboration while considering their financial capabilities. By providing a wider range of products with respective price options, consumers can choose products that suit their budget without sacrificing the desire to own Modena and Marvel collaboration products.
iv. Consumer experience: create a positive experience for the young segment by focusing on three key aspects: the quality of collaboration products, responsive customer service, and consumer satisfaction. When the young segment has a positive experience with Modena's collaboration products, along with responsive customer service and high levels of consumer satisfaction, they are more likely to become brand advocates. They may recommend the products to their friends, family, and peers both actively, by directly sharing their positive experiences, and passively, through online reviews and social media mentions. This word-of-mouth promotion can significantly impact brand awareness and attract new customers within the young segment. By consistently focusing on quality, customer service, and consumer satisfaction, Modena can cultivate a strong reputation and encourage the young segment to become ambassadors for their collaboration products, ultimately contributing to increased brand awareness and market growth.
3. Conclusion and Recommendation
Conclusion
Based on the study which had been conducted, the following conclusions can be drawn:
i. The co-branding partnership between Modena and Marvel has significantly amplified Modena's brand awareness among the younger target market segment. The incorporation of Marvel's well-established and beloved characters into Modena's offerings not only appealed to the younger demographics but also sparked a broader interest in the brand, enriching its public perception. Collaborative products between Modena and Marvel have achieved quite success among the young segments. However, this success is limited due to the lack of product visibility among the young segment regarding these collaborative products. This indicates a need for improved distribution and channel mix and enhanced marketing and promotional efforts to enhance awareness.
ii. Customers perceive the co-branding partnership between Modena and Marvel favorably due to a combination of factors. Foremost among these is the perceived product quality.
The customers have noted the continued high standards in Modena's offerings, which demonstrates commitment to quality despite branching into a new co-branding venture.
Another critical factor is the strong brand fit between Modena and Marvel. Customers appreciate the harmonious blending of both brand identities, with Modena's sleek and contemporary design aesthetics aligning well with Marvel's dynamic and imaginative universe. This congruity strengthens customer perception and acceptance of the partnership. Promotional activities also play a significant role in shaping customer perceptions. The engaging marketing campaigns, interactive events, and special edition product releases effectively showcase the partnership's best aspects. These strategies provide a shared experience for customers, bolstering their connection to both brands and driving a positive reaction towards the partnership.
iii. Expanding the target market to the younger segment has proven to be highly successful for the Modena-Marvel co-branding partnership. This demographic has shown great enthusiasm towards the unique blending of the two brands, leading to a significant increase in brand engagement and product sales. Furthermore, the alliance with Marvel, a brand with a huge appeal to younger generations, has introduced Modena to a wider, more diverse customer base. The younger segment is not only highly receptive to co-branded products but also very active in social media, thus playing a pivotal role in driving digital word-of-mouth for Modena. This increased brand exposure has resulted in an uptick in brand recognition and preference, successfully establishing Modena as a more relevant and appealing brand among the younger market segments. Therefore, targeting this younger
audience has been a strategic triumph, amplifying Modena's market reach, brand resonance, and future growth potential.
iv. The factors which influenced the successfulness of co-branding Modena Marvel can be defined as follows: (1) Value Relevance (Innovations, Creativity, Dare of New Things);
(2) Value-for-Money; (3) The Collaborations are Deemed Innovative and Unique; (4) The Collaborations Created Engagement and Bonding with Younger Segment.
Recommendation
Based on these conclusions, several recommendations can be made:
i. Develop targeted marketing campaigns that specifically cater to the young segment.
Utilize platforms and channels that are popular among this audience, ensuring the messages reach them effectively and create a lasting impression.
ii. Explore opportunities to expand the product range to include items that are more appealing to the young segment and align with their needs and preferences. This could involve collaborations on different types of small appliances or innovative technological solutions that resonate with the target audience.
iii. Assess the affordability aspect for the young segment and evaluate the potential for offering more flexible pricing options or entry-level products that cater to individuals with lower income levels. This can help expand the customer base and make the collaborative products more accessible.
iv. Highlight the unique features and benefits of collaborative products that differentiate them from competitors. Emphasize aspects that are particularly appealing to the young segment, such as design, technology, energy efficiency, or sustainability.
By implementing these recommendations, Modena and Marvel can better engage with the young segment, enhance awareness, and address the identified challenges. This can lead to increased acceptance and adoption of collaborative products, ultimately driving their success in the market.
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