What Is Co-Branding?

Co-branding is a marketing strategy that utilizes multiple brand names on a good or service as part of a 澳洲幸运5官方开奖结果体彩网:strategic alliance. Also known as a brand partnership, co-branding (or "cobranding") encompasses several different types of branding collaborations෴, typically invওolving the brands of at least two companies. Each brand in such a strategic alliance contributes its own identity to create a melded brand with the help of unique logos, brand identifiers, and color schemes.

The point of co-branding is to combine the market strength, 澳洲幸运5官方开奖结果体彩网:brand awareness, positive associations, and cachet of two or more brands to compel consumers to pay a greater premium for them. It can also make a product less﷽ susceptibl꧟e to copying by private-label competition.

Understanding Co-Branding

Co-branding is a useful strategy for many businesses seeking to increase their customer bases, profitability, market share, customer loyalty, brand image, perceived value, and cost saving൲s. Many different types of businesses, such as reta🌳ilers, restaurants, carmakers, and electronics manufacturers, use co-branding to create synergies based on the unique strengths of each brand. Simply put, co-branding as a strategy seeks to gain market share, increase revenue streams, and capitalize on increased customer awareness.

Co-branding can be spurred by two (or more) part🦋ies consciously deciding to collaborate on a specialized product. It can also result from a company merger or acquisition as a way to transfer a brand associated with a well-known manufacturer or service provider to a better-known company and brand. Co-branding can see more than just name and brand associations; there may also be a sharing of technologies and expertise, capitalizing on unique advantages of each co-branding partner.

A co-branded product is more limited in terms of audience than a broad, single-name corporate product. The image it conveys is more specific, so companies must consider whether co-br💮anding can yield benefits or if it would alienate customers accustomed to a single name with a familiar product identity.

Companies should choose co-branding partners very carefully. As much as a company can benefit from a relationship with anot𓂃her brand, there can also be risks. A good strategy is to slowly roll out a co-branded product or service before publicizing and promoting it, thereby giving the marketp🥃lace time to vet it.

Co-Branding Strategies

According to branding and marketing 🧜experts, there are💧 four distinct co-branding strategies:

1. 澳洲幸运5官方开奖结果体彩网:Market penetration strategy: A conservative strategy that seeks to preserve the existing market share and brand names of two partnered or merged firms.
2. Global brand strategy: Seeks to serve all customers with a single, existing global co-brand.
3. Brand reinforcement strategy: Exemplified by the use of a new brand name.
4. 澳洲幸运5官方开奖结果体彩网:Brand extension strategy: The creation of a new co-branded name to be used only in a new market.

Co-Branding vs. Co-Marketing

Co-branding and co-marketing are similar concepts in that both 🥃involve partnerships between brands that seek to bolster their marketing effort♛s, but they differ in how they are executed. Co-marketing aligns the marketing efforts of two partners but does not result in the creation of a new product or service. Co-branding, by design, is based on the creation of a new product or service.

Co-Branding Examples

Co-branding is all aroundꩲ you. Consider these exampl🌟es:

• Taco Bell's Doritos Locos Tacos: Specialty food item co-developed by Yum! Brands, Inc. and PepsiCo subsidiary Frito-Lay, Inc.
• "Your favorite music, one tap away": An Uber and Pandora Media collaboration that lets Uber riders create Pandora playlists to use during trips
• Citi AAdvantage cards: Citi credit cards that earn American Airlines miles with qualifying purchases
• Supermarket foods: Pillsbury baking mixes with Hershey's chocolate; Kellogg's cereal with Smucker's Jif peanut butter
• Nike+: A Nike Inc and Apple Inc partnership that has connected activity tracking technology in athletic gear with iPhone apps and the Apple Watch.