Table of Contents
- What is co-branding?
- Difference between co-branding and collaboration
- Why is co-branding necessary?
- Collaboration formats in co-branding
- How to choose a partner for co-branding
What is co-branding?
Co-branding is a strategic form of collaboration in which two companies combine their efforts to promote and strengthen their brands. This can manifest in various formats, such as joint product development, the creation of co-branded stores, participation in events, advertising campaigns, and loyalty programs. The term "co-branding" comes from the English word "co-branding," which translates to joint branding.
The co-branding process includes similar steps to traditional branding, such as:
- Developing a new positioning that combines the features of both brands;
- Creating visual elements such as combined logos, brand styles, and packaging designs;
- Promoting through various marketing communication channels.
An example of co-branding is the collaboration between the confectionery company Krispy Kreme and M&M's, resulting in donuts featuring the famous candies.
Difference between co-branding and collaboration
Although co-branding and collaboration may seem similar, they have their differences. Collaboration is a broader concept that encompasses various forms of cooperation between companies to achieve common goals. While collaboration includes activities such as joint promotions and contests, co-branding focuses on developing and strengthening two brands through joint marketing initiatives.
The main goal of co-branding is to create new products or marketing campaigns that are of interest to both brands, thereby helping them expand their audience.
Why is co-branding necessary?
Co-branding serves multiple business purposes, including:
- Attracting new customers: The joint efforts of two brands with a shared target audience facilitate the exchange of loyal customers;
- Expanding the target audience: Brands can adopt each other's features to attract new customers;
- Changing positioning: Co-branding allows a company to adapt and change its image;
- Improving image and reputation: Collaborating with a more authoritative brand can increase trust in the company;
- Creating a unique selling proposition: Combining technologies and resources allows for the development of a completely new product;
- Optimizing promotional costs: Two companies invest in advertising together, which reduces costs and increases reach.
For example, the collaboration between Fendi and Tiffany&Co became a successful co-branding effort, resulting in the launch of an exclusive bag in Tiffany's color, unavailable to other brands.
Collaboration formats in co-branding
There are several co-branding formats that help companies increase recognition and create added value:
- Creating a new product or service: The most effective way to attract a broad audience;
- Joint advertising campaign: Launching advertising that features both brands without creating a joint product;
- Co-branded stores: Opening stores that represent both brands in a unified space;
- Hosting events: For example, the Olympic Games with numerous partner brands;
- Loyalty programs: Co-branded programs offering bonuses for customers of both companies.
An example of a successful advertising campaign was the joint promotion between Samsung and Marvel, timed with the release of the film "Avengers: Age of Ultron." This collaboration allowed both brands to promote simultaneously.
How to choose a partner for co-branding
Choosing the right partner for co-branding is a key step in successfully implementing the project. It is important to study the potential partner, their target audience, positioning, reputation, and the values they convey. Companies often choose partners with similar target audiences and values but with different products. For example, this could be co-branding between sportswear and fitness applications.
It is also advisable to conduct market analysis and consider alternative options to find a partner who can complement and enrich your brand. An example of such collaboration is the partnership between the fashion house Balmain and H&M, which provided access to a new audience and elevated the status of both companies.