We’ve all heard of branding so what is co-branding? It’s just as it sounds really. It’s a marketing strategy in which two (or more) parties work together in order to increase visibility and profits while reducing costs. It has mutual benefits to both parties and typically between two brands that have interests that align. There is one difference here that makes it co-branding and not co-marketing and that is that the partnership is created in order to promote a new product or service. Co-marketing is a partnership between two parties where they promote existing services/products or a one off. So, why use co-branding? The benefits include those listed above as well as increasing customer base, perceived value, loyalty and creation of higher quality products/services. There are some distinct co-branding strategies.
1. Joint venture: focuses on value addition as two or more brands create an alliance to present a product to the target audience.
2. Sponsor: this is where brands work together in tech, promotions, sales at events, such as concerts etc.
3. National to local: a local, small business links up with a national one in order to increase brand awareness.
4. Same company: this is where multiple in-house brands develop and promote a single product/service. This can improve perceptions of each part of the partnership.
5. Ingredient: this is when a brand’s product is marketed as a separate entity.
Co-branding is a low-risk, high-reward partnership. If your brand is looking to increase awareness, reach out to other like-minded brands to create a partnership. Put a list together of people your brand would benefits from working with and vice versa. Then, you can brainstorm possible ideas for the alliance.
