Co-branding involves a working relationship between two or more brands, either within the same company or between different companies. It is a promotional strategy that associates two brands in the minds of consumers to increase sales. Co-branding can occur at a local or international level and can involve sharing retail space and facilities.
Co-branding is a business strategy that involves establishing some kind of working relationship between two or more brands. In some cases, the application of this type of branding activity has to do with the creation of different brands in the same company. At other times, co-branding focuses on creating a connection between two well-established brands that are owned and produced by two different companies.
When most people think of co-branding, the first thing that comes to mind is a situation where two different product brands are associated with each other. This type of relationship can be used to jointly market the two products to the same consumers, effectively drawing loyal customers from one product to the other. For example, the producer of a certain brand of ice cream might work with the producer of a certain soft drink to entice consumers to buy both products as a way to float the perfect ice cream.
Making connections between products that can work together in some way is a promotional strategy that has led to all sorts of innovation in co-branding. Soup companies have teamed up with dairy producers to encourage the creation of party dips using dry soup mixes and sour cream. Fast food chains have created ongoing promotional campaigns that highlight the availability of specific soft drinks. Sometimes even furniture manufacturers choose to use a co-branding strategy when partnering with producers of home textiles such as carpets and curtains. In all cases, the objective is to associate the two brands in the minds of consumers, so that the sales of each brand increase significantly.
Along with this type of joint venture co-branding activity, the same general principle can be employed within a single company. Same-company co-branding can involve a process where the company creates two or more brands that are sold at its retail outlets but appear to be products of different companies. This is sometimes done to circumvent some consumers’ perception that stores or stores are inherently inferior to branded products. As an example, a supermarket may carry two apparently different brands of canned green beans, when, in reality, the supermarket chain has both brands.
Fast food chains have also started using co-branding in addition to sharing retail space. By employing co-location as part of the strategy, the two chains can share facilities such as dining rooms and help minimize some of their joint business expenses. At the same time, they attract customers who appreciate the ability to order food from two different menus under one roof, increasing the possibility that groups of customers will choose them over a chain operating alone.
Co-branding can occur at a local level or involve two or more national brands. It is even possible to make use of this type of branding strategy at an international level. Increasingly, electronics and telecommunications companies are using this type of marketing approach, making it possible to pool resources and reach consumers who might otherwise never be interested in either brand.
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