You always want to listen to some things together, like bread and butter, bow and arrow, or black and white.
Okay, enough examples. But these examples prove only one thing - Two is better than one.
Isn’t it?
But can two brands work together?
Co-branding might be the answer for you because 71% of consumers enjoy co-branding partnerships, and 54% of companies say the partnership with other brands helps to drive 20% more revenue.
Many successful companies have used co-branding strategies for years, significantly increasing sales and revenue. Some iconic co-branding examples include Nike and Apple, Coca-Cola and McDonald's, and Uber and Spotify.
But how do these companies create such effective co-branding partnerships, and what makes them impactful?
This article will explore ways to build a successful co-branding strategy with some great examples. Let’s start with some basics first.
Co-branding is a branding and marketing strategy where two or more brands collaborate to create a product or service that combines their names, logos, and/or identifying features. Co-branding campaigns boost brand awareness in the new market and increase sales and customer loyalty.
Further, it can greatly increase brand recognition, reach new target audiences, and differentiate your products or services from competitors. By working together, brands can pool their resources, share costs, and benefit from each other's expertise and knowledge.
However, choosing the right co-branding partners ensures collaboration aligns with your brand strategy and values.
There are three types of Co-branding-
Co-branding partnerships are impactful as they involve two brands working together to create unique customer value. Choosing the right co-branding type can provide each brand with many benefits. Some benefits include the following-
When you collaborate with other brands, your brands get exposure to other brands' fans, followers, and loyal customers, which helps to reach an increased customer base and increase brand exposure.
Co-branding can also enhance a company's credibility by associating them with a partner brand with a strong industry reputation. For example, a clothing brand may collaborate with a popular fashion blogger to create a new clothing line. By aligning themselves with the blogger's known sense of style and fashion knowledge, the clothing brand can increase its credibility, trust, and loyalty with potential customers.
Ultimately, co-branding aims to increase revenue for both companies involved. Companies can create a more innovative product or service that appeals to a wider audience by combining forces and resources. This can lead to new revenue streams and increased profits for both businesses.
Collaborating on a joint product or service can also save the marketing costs of marketing campaigns for both companies. By sharing expenses and building strategic marketing plans and resources, businesses can reduce the costs of production, distribution and marketing. This is particularly beneficial for smaller companies that may not have the resources to compete with larger competitors.
Let’s dive into how to build a Co-branding Strategy.
Now, as we discussed some of the benefits of Co-branding, let’s dive into building a successful Co-branding strategy. Remember, the collaborating brands must have the same goals and objectives to run a successful Co-branding campaign.
Here are the steps to build a successful strategy-
A co-branding campaign's success often depends on the goals and objectives of your strategic partnerships.
It's crucial to set clear objectives that both parties agree on. This helps ensure that the co-branding effort stays focused and delivers measurable outcomes.
For instance, the partnership between GoPro and Red Bull collaborated on many events and projects as they are both in the realm of action sports. The exclusive GoPro content helped both brands to grow.
When building a co-branding strategy, it’s important to identify a partner with similar values and customer demographics. Look for a brand partner that shares the complementary product or service.
For example, BMW Co-branded with Louis Vuitton; pairing might not seem so obvious. But both have one thing in common: they value luxury and are in the travel business. The target market of both brands has desired luxury craftsmanship, which helped them grab their Loyal Customers' attention.
Co-branding should focus on creating a unique product or service that enhances both brands, creating more value for the customer. Brands often forget that co-branding can help them generate new ideas that might not be possible when thinking alone.
By Co-branding with the brand in your target market, you can start brainstorming a unique product that can align with both brands’ values and resonate with the target audience.
For example, Bonne Belle & Dr. Pepper Co-created a product called Lip Balm with Dr. Pepper flavored. It’s a memorable and unexpected co-branding campaign. They both created a new realm of possibilities, and no customer wanted to get left out.
Smart Co-branding partnerships develop a marketing and communication plan that promotes the co-branded product or service. Ensure that the messaging is consistent across all channels and highlights the unique benefits of the partnership.
To maximize the effectiveness of your campaign, it's important to consider the specific strengths of each channel and tailor your messaging accordingly. You can campaign across multiple channels like social platforms, email marketing, co-branded events, and in-store promotions to maximize the impact and reach.
For example, the Uber Eats and McDonald’s partnership provided exclusive discounts to customers, which were heavily promoted on social media and during major promotional events.
The final step is to measure the success of the co-branding campaign. Tracking and analyzing the results is necessary to determine if the campaign reached the intended objectives.
Measure the success of the co-branding partnership using metrics such as sales, customer engagement, and brand awareness. Analyze the results to identify areas for improvement and refine your strategy for future partnerships.
For example, McDonald's and Coca-Cola formulated a perfect partnership that has lasted decades. The two brands have successfully promoted and sold each others’ products - McDonald’s would sell Coca-Cola in its restaurants, while Coca-Cola would promote McDonald’s in its advertising.
Digital Co-branding is a powerful tool enabling you to delight customers and reach new loyal customers who might never discover your brand and products. The best co-branding partnership can help both companies to complement each other, provide a unique experience to customers, and understand each other's customer bases.
Building a successful co-branding campaign requires identifying a compatible partner, having clear objectives, leveraging each other's brand equity, executing a unique campaign and measuring its success. Co-branded campaigns can increase sales, customer loyalty, and brand awareness by partnering with complementary brands and creating unique offerings.
By following these steps, brands can create a co-branded campaign that offers something unique to consumers and helps drive mutual success. Subscribe to our newsletter to get more such amazing content dropped in your email.
For your branding requirements, feel free to reach out to us on design@bizongo.com
