Issues with Co-Branding and Brand Internationalization
The target market segment of the brand Dark Delight overlaps with the present target consumer base of the company and hence there is a possibility that there may be sales cannibalization amongst the brands. These effects cannot be nullified also, but on an aggregate, they are good for the company as a whole, provided that it does not generate unhealthy competition amongst the brands. To avoid these issues, the company should implement planning strategies at the broad corporate level and then determine the targets for the individual brands, so that a fair and healthy competition takes place amongst the brands.
Besides this, the brand Dark Delight is initially targeted to the US market only. However, the brand should seek to achieve geographical diversification as it is marketed under the corporate brand Cream Delight, which is a global brand and has earned high confidence of the consumers. This brand loyalty and brand equity can be capitalized on, by introducing the newer brand under the corporate umbrella brand so as to boost profitability. Initially, the product is being launched in the domestic market so that the reactions of the customers can be gauged and accordingly, the product can be improved upon so that it appeals to the global consumers at large.