Abstract

Producers usually face two main problems: one is the standard product glut caused by too many products in the market, and the other is the marketing communication channels’ competition to attract consumer interest to generate demand. Under these circumstances, it is not surprising that approximately 80 percent of brands decline almost immediately after their introduction and a further 10 percent decline within the first five years. In general, only one out of ten brands has a chance of long-term survival. To increase the chances of brand survival, some companies use a cooperative approach with a number of possible alternatives. As examples, in horizontal co-operation, several shops may build a common car park to attract more customers, and in vertical co-operation, entrepreneurs from logistically challenging areas co-operate with each other by aggregating their demand though one supplier. The degree of co-operation may also extend to brand management, but this degree of sophisticated co-operation can only occur over time once a degree of trust and mutual benefit is evident. Brand cooperation is commonly used both at the vertical and horizontal levels. The aim of this paper is to consider and discuss data gathered through semi-structured interviews with indigenous small businesses in the Czech Republic on their attitudes towards cooperation at the local level. The paper concludes that there is some evidence towards brand management cooperation, but that this is limited by a number of business factors.