All you need to know about Co-Branding

What’s the Co-Branding?

For Co-Branding is meant a real partnership that involves two different brands in a common marketing strategy. It is a real commercial partnership between companies that product and deliver together a product for a mutual benefit.

The benefits could be:

• Greater mutual visibility
• An enlargement of the reference market
• An increase in sales
• Change in positive the perceived positioning

The first thing we have to consider is that Co-Branding is a marketing technique and everything that marketing does (tattic or strategic) is to sell more and with more margin.

The second thing we have to consider is that there are three different ways to do Co-Branding:

1- A company lends its brand to another company that sells the product

2- A company lends a part of its product to another company to insert it inside a primary product

3- Both companies sell the whole product 

 

As you can see from the examples above, the segment categories could be different. The segment markets are often different. In many cases the segment markets are complementary, compatible and they attract each other.

Many companies nowadays are moving towards Co-Branding. This, in fact, is a current topic that seems to be appreciated in Italy and abroad. For this reason I wondered some questions.

 

Why using the Co-Branding?

When the Co-Branding is done well and deals with valuable products, it has long lifetime and works well, but it has to be a synergistic effort or it risks to bring zero results.

The partnership and the activities in common between brands could be different:

1. Long-term or occasional Co-Branding

The Co-Branding could be a long-term relationship between companies that have the same common vision or could be a commercial partnership which is realized in a specific period of the year (for example Christmas time)

 

2. Co-Branding based on the communication of the product or on the actual products

In the first case we have a theoretical combination that is valid in advertising terms. In the second case we have two different products which are sold together to increase the sales.

 

3. Functional and unequal Co-Branding

In this case we have a Co-Branding that concerns two brands that are not at the same level. One benefits from the great recognition of the other, while the other one will benefit of the operation.

 

In which way the Co-Branding could be profitable?

An initiative of Co-Branding could have some benefits for both brands. In fact, some brands by teaming can take advantage from the strenghts and the reputation increasing their activities by expanding themselves to a new audience and market.

The transfer of positive brand associations from one brand to another is not easy but can have an impact on the long term even beyond the same co-branding partnership.

 

Are you interested in a Co-Branding initiative? Contact us! >>

 

You can reach new markets

A Co-Branding product or campaign can increase your brand exposure to your partner’s target audience. This effect happens thanks to the audience overlap.

Loyal consumers of a brand will try the new product or service, even if they would never have considered the second Brand alone allowing to exploit the value of the former to reach new markets or new consumers.

        

Co-branding is a strategic choice to be evaluated with great care because it requires efforts, human and economic resources for each of the companies involved. Wasting these opportunities can be very expensive and the damage could even affect the perception of the company in a long term way.

 

If you want to know all your best possibilities and the potential benefits that your company could get from a co-branding operation contact us now for a strategic advice.

 

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