The definition of co-branding is the union of brands, especially two, with the aim of enhancing the value and profitability of both. These types of agreements became very popular in the 90s, being again current. One of the objectives is the win-to-win association, in which the two parties involved benefit.
In the case of the host brand, the benefit it gets is the prestige or quality provided by the second firm. Meanwhile, the latter gains in market penetration and access to markets in which usually does not usually work.
When there are two firms that participate in co-branding, they must be clear about what message they must convey in the joint campaign. Co-branding agreements in marketing are becoming more and more common. Because companies look favorably on these strategic alliances.
Before establishing a co-branding strategy, you need to know the different classes that exist:
- Co-branding of complementary competencies: it is when two different brands are linked to promote an article in which the two firms participate and that serve as complementary to offer the best possible service to customers. One of the examples of cobranding in this sense is the agreement sealed between Nike and Apple, when they created a device for iPhone and iPod for athletes.
- Knowledge co-branding: this method consists of sharing information from your users to companies that contribute totally different articles, and that apply to the new market segment you want to focus on. In this way, brands have reliable and secure information. Example: agreement between an airline and a credit card.
- Ingredient co-branding: brand alliances, in this sense, are made to manufacture a product that generates greater value. These are usually food items that are merged to launch a new product.
- Co-branding to promote values: the brands participating in the agreement seek to highlight the values of both, through mutual praise. They get the other company to have a better one corporate image, since the best of each of the parts is enhanced.
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