McCafe...Sub-Brand, Para-Sub-Brand Or Co-Brand?

Abstract

This paper focuses on the issue of organisational co-branding, and in particular, whether a sub-brand can perform the dual function of a co-brand. It is proposed that within a specific environment this apparent contradiction of terms is possible. This phenomenon is examined through the example of the McDonald's/McCafe co-branded franchising arrangement, which evolved in Australia through the 1990s and early 2000s. This paper attempts to clarify the limited discussion in literature regarding sub-brands and co-brands with regard to the McDonald's/McCafe brand relationship and also highlights some of the differences between a promotional/product based co-branded relationship and co-branding in an organisational context. Hence, a theoretical perspective is formulated representing a brand portfolio structure that intrinsically links the parent brand synergistically at the sub-brand level to achieve a more complex co-branded arrangement.