Co-Branding: Definition, Strategies & Example

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  • 0:02 What Is Co-Branding?
  • 0:54 Strategies & Examples
  • 2:41 Lesson Summary
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Lesson Transcript
Instructor: Susan Fenner

Susan has an MBA in Management from the University of North Alabama. She teaches online and campus-based Business courses.

Co-branding has been gaining a lot of steam as a marketing strategy to increase sales. But what do we mean when we say 'co-branding,' and how does it apply in the business world today? Let's take a closer look in the lesson below.

What Is Co-Branding?

What could be better than a delicious Betty Crocker® Fudge Brownie? How about a Betty Crocker® Supreme Ultimate Fudge Brownie with Hershey's® Chocolate!

Have you ever seen advertisements, like the one mentioned above, that promote products from two different brands at the same time? If so, you've already seen examples of co-branding, or a marketing partnership between two or more different brands to jointly promote a product or service.

Co-branding has become increasingly popular as a marketing strategy, partially because it allows businesses to combine their strengths and loyal customer bases, while sharing advertising and promotional expenses. With co-branding, each brand has the potential to move outside of their own customer base and gain the attention of the customers of another well-known and trusted brand.

Strategies and Examples of Co-Branding

One of the basic strategies behind co-branding is to combine the brand recognition of two products into a single product that customers are willing to pay a little extra for. An example is the co-branding of Disney® and Crocs®. It might cost a bit more to sport Minnie Mouse or Lightning McQueen on your Crocs, but seeing the smile on a child's face when they recognize a favorite Disney character on their shoes is worth the price to a lot of customers.

Another important strategy behind co-branding is to create a unique new product that other companies can't duplicate. There are numerous manufacturers of lip gloss products, but only Bonne Bell Lip Smackers® comes in the popular Dr Pepper® flavor.

Co-branding is also used to create new products that combine the best-known features of two existing products. Dawn® dishwashing liquid claims it is well-known for its ability to cut grease. Oil of Olay® is known for its successful line of women's beauty products. So, what happens when two recognizable companies decide to co-brand? Introducing Dawn Hand Renewal with Olay Beauty®! According to their advertisement, the new dish liquid contains the 'grease-fighting power of Dawn and the hand-rejuvenating strength of Olay Beauty.' The marketers behind this co-branding take advantage of each other's most well-known qualities to create a new, unique product.

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