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Subhasree Nag, 3 days ago
Looking for ways to enhance your brand visibility?
Well, have you ever thought of co-branding? It is one of the most effective ways of combining power and leads to increased profit margin and brand visibility. The best part is that both companies’ individual costs and risks are reduced.
Most companies use this method to create products and reach out to new marketers. If you are a business professional looking for brand marketing opportunities, then this is one of the best strategies you can take. Let’s explore the topic in-depth and look at the advantages and disadvantages of co-branding.
Co-Branding: What Is It?
Co-branding is a brand marketing strategy where two or more brands form a partnership together to get mutual benefits from their joint venture. When a brand forms a partnership, it improves its brand strategy, and the effectiveness of its marketing strategy increases.
The brands leverage their weaknesses and strengths and reach out to new markets. This enhances brand image and opens new opportunities for creating new products and services.
You can try product branding, where you just collaborate with another brand to create a new product. It is like creating a unique identity for a product. Or you can opt for business branding where you collaborate and merge two brands completely.
Benefits Of Co-branding
There are numerous benefits of co-branding. If you are looking to expand the reach of your company and increase the market presence, then this is one of the best strategies that you can apply.
You can partner with complementary brands and get into their customer base, increasing your market share, brand awareness, and visibility.
Expand Your Customer Reach
One of the main advantages of co-branding is that it gives you access to a wide range of audiences as it adds to both customer bases. When two brands come together, they combine their marketing efforts to reach their maximum potential,
For instance, if a shoe and a clothing brand collaborate, they have the advantage of cross-promoting the products to each other’s consumers. This promotes both brands to new customers and attracts brand loyalty for both sides.
Increase Brand Visibility And Awareness
Co-branding generates a buzz in the market. If two reputed brands come together for a product launch or on any joint venture, it creates a buzz among its customers. This hype increases brand visibility and awareness of both the involved brands.
For instance, when Apple and Nike came together to form Nike+, it got extensive media coverage and generated interest from fitness enthusiasts.
Reduced Risk And Shared Cost
When a brand collaborates with another, they share the cost associated with marketing campaigns, events, or product development. By gathering all the resources together, both brands get to access new markets and launch innovative products without the burden of bearing all the costs alone.
This reduces the individual risk but maximizes the potential returns. For instance, Starbucks collaborated with Spotify offering amazing playlists inside its stores. Both brands shared the costs and provided an amazing experience for their customers.
Consumer Perception And Enhanced Credibility
When two brands come together, the credibility of the brands increases among their customers. When a brand collaborates with an already established brand, it strengthens the trust and perception of the brand in front of the audience.
For instance, when a luxury car manufacturer partners with a good audio brand for an in-car sound system, it enhances the entire perception of luxury, and the quality associated with the car.
More Competitive Advantage
Co-branding gives businesses a competitive edge in the market. When the resources are combined, like customer base and expertise, brands can offer unique offerings that competitors often struggle to provide.
This added advantage allows the companies to set themselves apart from other brands in the market, retain existing customers, and attract new customers.
Things To Consider While Choosing A Co-branding Partner
For a lucrative co-branding partnership, there are certain things that you must consider. These strategies will help a brand create a synergy between the partners and increase the potential for maximizing benefits from this collaboration.
Choose A Partner That Shares The Same Values, Objectives
When you start this shared venture, you must choose a partner with a compatible target audience, objectives, and values. These things must match.
It will ensure that both the brands involved can leverage each other’s strengths and reach a broader customer base. It is important that both your goals match, and it will create a tiff during corporate branding.
Clearly Define Your Expectations And Responsibilities
From the beginning of the partnership, it is important that you define both partners’ roles, expectations, and responsibilities. This will help prevent any kind of conflict and confusion in the future.
Develop A Marketing Plan
Both partners must create a marketing plan together to make this partnership successful. It will combine both their strengths and maximize exposure to get positive results.
This includes cross-promotions and joint advertising campaigns to highlight the products and services. When they combine the resources with their expertise, both brands benefit as they get better customer engagement and increase the visibility of both brands.
Maintain Open Communication
Open communication is the key to keeping things clear with your partner. Brands must schedule regular check-ins and meetings with their partner to discuss progress and address the challenges and concerns.
Discuss and make necessary changes to ensure both brands benefit from this partnership. With the help of open communication, it becomes easy to overcome challenges and resolve potential issues, which can turn into bigger problems if left unattended.
Related: Tips to Promote a Small-Scale Business
Examples Of Successful Co-Branding
Partnering with a brand is a strong marketing strategy. Many renowned brands have tried this, and their collaborations have been successful. Here are a few notable co-branding examples that have left a mark in the market.
McDonald’s And Coca-Cola
Coca-Cola and McDonald’s have been having a long-lasting partnership. When you think of those juicy burgers from McDonald’s, you instantly think of Coca-Cola. This is the best possible combination that you can think of.
This campaign has been successful as it tapped into the emotions of people who are associated with both brands. The amazing combination of fast food with refreshing beverages creates an amazing nostalgia among the customers.
Nike And Apple
Apple and Nike came together to create a campaign together that brought a revolution into the fitness industry. They incorporated the Nike+ technology into the Apple devices. This gave its users an improved fitness tracking experience.
This way, Nike got the opportunity to reach out to a larger audience as Apple already had widespread customers. Moreover, Apple allowed its customers to get more into fitness. This campaign succeeded because of the seamless collaboration between Apple’s technology and Nike’s expertise.
Starbucks And Spotify
Spotify and Starbucks collaborated and offered an exclusive playlist with the help of the Starbucks mobile app. This combined music and coffee together. They targeted coffee lovers who were enthusiastic about music as well.
They offered a curated playlist that aligned with the Starbucks experience. The customers enjoyed their favorite music as they sipped their coffee. Their partnership increased engagement with the app and brought loyal music enthusiasts onto the scene.
Grow Together
You must find the right brand to partner with to get everything together. Co-branding gives both brands a chance to explore new markets along with shared resources.
When you select a partner, choose one, considering their objectives and values. When a brand partners with another like-minded brand, it reaches new markets, and its brand visibility increases. Implement the strategies and channel the power of collaboration.
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Subhasree Nag
A self-proclaimed Swiftian, Instagram-holic, and blogger, Subhasree eats, breathes, and sleeps pop culture. When she is not imagining dates with Iron Man on Stark Tower (yes, she has the biggest crush on RDJ, which she won’t admit), she can be seen tweeting about the latest trends. Always the first one to break viral news, Subhasree is addicted to social media, and leaves out no opportunity of blogging about the same. She is our go-to source for the latest algorithm updates and our resident editor.
