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.
Event sponsorship is another co-branding strategy. An example would be Coca-Cola's® sponsorship of the Olympic Games. Who can forget the image of an icy cold can of Coke sporting the iconic Olympic rings? Or the world-class athletes vying for the Gold against a backdrop of colorful Coca-Cola billboards? That kind of exposure is something marketers would - and do - pay millions for.
Co-branding is a popular marketing strategy. It allows two or more brands to combine their strengths and resources to promote a new product or service that may be sold at a premium price. Carefully chosen event sponsorship is another co-branding strategy that links the reputation of two brands and promotes brand awareness to a larger customer base. Co-branding has the potential to increase brand awareness and sales for the partners, often leading to a win-win situation.
Co-Branding Topics & Explanations
||a marketing partnership between two or more different brands to jointly promote a product or service
|Popular marketing strategy
||allows businesses to combine their strengths and loyal customer bases, while sharing advertising and promotional expenses
||combine the brand recognition of two products into a single product for which customers are willing to pay a little extra
||as simple as a sports drink sponsorship of the Special Olympics
When this lesson ends, you should know how to:
- Describe co-branding
- Identify why this marketing strategy is so popular
- Explain how products may use event sponsorship for co-branding