SHORT NOTES ON PIGGYBACKING MARKETING

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M.COM First Year Tutor Marked Solved Assignment

Course Code : IBO – 02
Course Title : International Marketing Management
Assignment Code : IBO-02/TMA/2019-20
Coverage : All Blocks

IBO – 02 International Marketing Management Solved Assignment for 2019-20

Q1.)(b)Write short notes on the following:

  i) Piggybackings :

 " A low cost market entry strategy in which two or more firms represent one another's complementary (but non-competing) products in their respective markets."

It is focused on finding organization that can benefit mutually from a relationship that offers complementary products or services. These are organizations that aren't competing with each other in the marketplace but rather can give each other a leg up while sharing the cost of advertising. There are two terms in piggybacking process; carrier and rider. The carrier is usually a large firm with highly reputed international business and experience, and carrier should have widespread production and distribution strategy while rider is the supplier of the basic products. The rider is piggybacking its products on the shoulders of the established company.

When a new product line is needed by firm to satisfy their customer, they have alternative to acquire the necessary products outside by piggybacking. This option can be attractive for big companies to be a carrier because they obtain the new product faster. It is also a low cost solution to get product because carrier does not have to invest in H&D, production facilities or market testing for the new product. Piggyback marketing strategies are typically used for products from unrelated companies that are non-competitive (but related) and complementary (allied).