Co-branding is when two or more companies enter into a partnership. Another brilliant thing about co-branding is that it combines two outstanding brands into one, which often leads to increased visibility. Some companies apply this method to create valuable products to reach new consumers. Also, you must understand this concept if you are a marketing or business professional. Additionally, in my research on co-branding, I studied the collaboration between a famous sports brand and a well-known electronics company that leads in wearable technology. I found out that this collaboration increased both brands’ visibility and attracted new customers. Also, the experience I got from this research taught me that co-branding could create innovative products that reach new markets and present the importance of marketing and business professionals. In this article, I will explain what you need to know about co-branding marketing and give examples.
Keypoint
- Co-branding is a marketing strategy that uses many brand names for a good or service as part of a close collaborative relationship between them.
- Ingredient co-branding, same-company co-branding, national-to-local co-branding, joint venture or composite co-branding, and multiple sponsor co-branding are common co-branding strategies to apply in utilizing the strengths of two or more brands.
- GoPro & Red Bull, Rachel Comey, Victor Glemaud, Sandy Laing, Nil Logan & Target, Balenciaga & Crocs, and Kanye & Adidas are examples of co-branding partners.
- Co-branding marketing is growing two or more businesses simultaneously by working together to share skills and offer value to their customers. It is a strategy where brands collaborate on a marketing campaign or initiative to promote their products or services.
- When creating a co-branding marketing strategy, set your company’s goals before considering working with a brand.
Co-branding
Co-branding is also known as brand partnerships. This means that you involve the brands of at least two companies. It is a marketing strategy that uses many brand names for a good or service as part of a close collaborative relationship between them. However, in collaboration, these brands contribute their own identity to develop a strong brand with the help of unique logos, brand identifiers, and colour schemes.
Co-branding aims to merge market strength, brand awareness, and positive association, as well as to have the official seal of two or more businesses in collaboration to draw more customers to them. While conducting my research on co-branding, I had the opportunity to observe and report on an exciting branding project between a leading consumer electronics company, “ PowerGear, and a famous software company, “ CodeCraft.” They aimed to develop a laptop that targets professionals and creative minds who want to blend innovative hardware with intuitive software.
After this collaboration, the strengths of both brands were showcased, as CodeCraft’s design skills and user interface expertise were combined with PowerGear’s advanced technology. Finally, they came up with a sleek laptop with a smooth user experience. This laptop appealed to the target audience, and many sang their praises for the excellent effect of the two brands. Additionally, I can say that this experience taught me how co-branding can grasp market strength and business awareness to create products that appeal to the consumer.
Types of Co-branding Strategies
There are different approaches to utilizing the strength of two or more brands. I have listed the following common co-branding strategies with real-life stories for easy understanding.
#1. Ingredient Co-branding
This is when business leaders decide the ingredients for another brand’s product. In agreement, each partner of these brands is usually a major, recognizable brand in their industry, and normally, each of these products must have a unique patented quality. As a business writer who has studied co-branding, and witnessed many co-branding projects, I recall an exciting co-branding project between a beverage company and a chocolate manufacturer. They came together to create a chocolate-flavoured coffee beverage using the chocolate manufacturer’s patented ingredients. This collaboration emphasized the superior quality of the ingredients and made it appeal to the targeted customers. In the end, the product’s success demonstrated how ingredient co-branding can create innovative products that emphasize the strengths of each brand.
#2. Same Company Co-branding
This strategy is used to advertise multiple in-house brands by developing and promoting a single product. Large food conglomerates usually apply this method, I have seen them use “same company co-branding” to promote their new products. They use this strategy to advertise multiple in-house brands through a single product. This, in turn, created a sense of trust and familiarity with their customers. This strategy showed me how a company can effectively promote multiple brands under one cohesive identity.
#3. National to Local Co-branding
This strategy is used when small local businesses collaborate with a nationally known brand. The aim of this partnership usually is to increase small business revenue. While I was studying co-branding strategies, I observed “Sweet Treats,” a local bakery, collaborating with a well-known national coffee chain, ”Brew Haven Coffee Co.” After this partnership, Sweet Treats gained access to a large customer base. I observed how many customers came in, unlike before. Brew Haven also benefited from offering local and artisanal products that helped enhance their brand image in the community. This partnership also brought revenue for the bakery by creating a unique and memorable experience for customers, who kept emphasizing the potential of this strategy as beneficial for all sizes of businesses.
#4. Joint Venture or Composite Co-branding
This includes creating a new product together or improving an already existing one. A joint venture or composite co-branding, is an agreement between two or more renowned companies aiming to present a new product or service that can’t exist on its own. I witnessed this strategy in action among two leading tech companies that joined forces to develop a groundbreaking smartphone with cutting-edge features. When they combined their technological skills, they came up with a product that offered unique value to the customers, and this would not have been possible had it been done independently.
#5. Multiple Sponsor Co- branding
This type of cobranding happens when two or more companies combine to share technology and promotional events. I recommend this strategy mostly for professionals, especially in athletic events, attention-grabbing stunts, and concerts. So, the company involved often gains the opportunity for increased sales, brand reputation, and recognition. In the course of my research on co-branding, I learned of a major sporting event where many brands came together and sponsored different aspects of the event, such as the venue, promotion activities, and merchandise. By collaborating their resources and emphasizing their collective skills, these companies were able to create a memorable experience for attendees and also achieve their marketing objectives.
Co-branding Examples
There are many great examples of co-branding partners. I have selected a list of examples of co-branding that will interest and inspire you.
#1. GoPro & Red Bull
GoPro doesn’t only offer portable cameras, and Red Bull doesn’t just sell energy beverages. Both of them have already established themselves as lifestyle brands. Notably, a lifestyle that is adventurous, fearless, action-packed, and extreme. They share values, making them ideal companies for co-branding initiatives, particularly in sports. My research showed me that GoPro equips athletes and adventurers worldwide. They fund them to capture things like races, stunts, and action sports, even on video. In the same way, Red Bull uses its experience and reputation to run and sponsor these events.
#2. Rachel Comey, Victor Glemaud, Sandy Laing, Nil Logan & Target
Anyone with good taste in fashion and a higher taste in designers will know that Target is of a different calibre than Sandy Liang when it comes to quality. Sandy Liang dresses cost around $600, while Target dresses cost $35 a pair. Based on my research, I found out that these designers and Target brands decided to collaborate because of the discrepancy in pricing. Target also paired with high fashion designers Rachel Comey, Victor Glemaud, Sandy Liang, and Lofan to support its brand as trendy and to offer exclusive branded items for a limited time.
#3. Joybird & Sherwin-Williams
Joybird Home Lifestyle and Sherwin-Williams, a paint company, collaborated to select a mixed collection of home furnishings and colour palettes. These two brands created an exclusive product line of paints and room design inspiration that assisted their customers in selecting paint colours that would complement their furniture choices easily. They ran a campaign that exposed their product and copywriting to new audiences.
#4. Balenciaga & Crocs
The most recent pairing of Balenciaga & Crocs got a boost from Eliot on the red carpet in 2022. But before that, they have been making headlines with their fun fusion of aesthetics since 2018. These brands have integrated their commitment to innovation and uniqueness. This is seen when Balenciaga, Creative Director, states in the GQ magazine, “I am not interested in anything average, including the average consumer…if someone is personally offended by Crocs, there might be a more serious problem within that person than the design of a shoe.”
#5. Kanye & Adidas
To develop a high-end footwear line called Yeezy, Kanye West partnered with Adidas in 2015. This combination of Adidas’ growing street footwear and Kanye’s brand segment increased the company’s earnings and aided brand growth. According to my research, it was stated that the brand cut ties with Yeezy in October 2022 because of harmful remarks and behaviour, which led to a loss of $655 million in sales at the end of that year. However, in May 2023, they began selling Yeezy merchandise again, and they donated some to social justice organizations.
#6. BMW & Louis Vuitton
Both brands may not be the most obvious pairing. But think about it: They have a few critical things in common. Louis Vuitton and BMW are both in the travel business. They are well-known for their superior craftsmanship. That is why this campaign makes sense. In collaboration, BMW created a sports car model called the W i8, while Louis Vuitton designed an exclusive four-piece set of suitcases and bags that fit in the car’s rear parcel shelf.
Co-branding Marketing
Co-branding marketing is the process of growing two or more businesses at the same time by working together to share skills and offer value for their customers. It is a strategy where brands collaborate on a marketing campaign or initiative to promote their products or services together. Furthermore, these processes can include joint advertising, co-sponsored events, or co-branded products. Co-branding marketing campaigns provide teams with the opportunity to emphasize the strengths of each brand to reach a larger audience and enhance brand visibility. I had the opportunity to observe and report on a co-branding marketing campaign between a fashion retailer and a shoe manufacturer. They organized a joint advertising campaign that showcased their products and reached a larger audience. I observed that this collaboration helped the two brands get more customers, strengthening their relationship and making future collaborations possible.
How to Create a Co-branding Marketing Strategy
The following includes how to create a co-branding marketing strategy.
Set Goals
Write down your company’s goals before considering working with a brand. These goals can increase sales and visibility to new audiences. I have seen two companies collaborate in co-branding marketing to increase their company’s social media following by a certain percentage. Setting goals doesn’t just help a company hold itself accountable; it also allows it to share objectives with its partners and decide whether they are a good fit. I have provided a checklist below to help you understand the strategies better.
Checklist on How to Create a Co-branding Marketing Strategy
What Is an Advantage of Co-branding?
The advantage is that your product can be positioned because of the collaboration of branding. Co-branding is a marketing strategy that involves the integration of two or more brands to create a product or service for which both brands will be identified.
What Are the Three Levels of Co-branding?
- Include collaborating with another company to penetrate the market
- Working to expand the brand based on the company’s market share
- Try to achieve a universal strategy by joining the two brands
What Is Co-branding Disadvantage?
- The disadvantage is when your partner shares different values and beliefs, which might frustrate the partnership.
How to Implement Co branding?
- Choose a compatible partner.
- Develop an offer
- Define your objectives and metrics
- Promote co branding campaign
- Evaluate co branding results
References
- Workplace Collaboration: Meaning, Examples & All You Need
- Joint Credit Card: All There Is To Know About Joint Credit Card
- COLLABORATION PLATFORMS: Best Collaboration Tools & Software in 2023
- JOINT SAVINGS ACCOUNT: What It Is And How It Works
- Joint Venture in Real Estate: Examples and Agreements
