The Importance Of Co Branding

Co-Branding

In today’s brand-centric world, co-brands can be seen everywhere. Starting from food products to credit card companies and fashion, co-branding has made an impact on business strategy is made and has been affecting the marketing world since 1950’s. When brands are unified, the result can be something that raises the bar and takes the product to all new unachievable heights. But similarly, on the opposite spectrum, it can leave the brand in the ruins fighting for survival, having diluted its position.

Over the past 60 years, co-branding has been used to form a plethora of relationships. There are various examples in different segments that can be seen throughout the brand world. Lay’s, Coca Cola, Pepsi to intangible products like

So, it actually helps in reinforcing the market position of the brands. In other words, co-branding helps in creating a deeper impact and brand recall among the target customers. Therefore, a diverse portfolio of brands helps gain more traction and exposure than just one product.

 Risk and Resource Sharing: If both the brands are looking to expand their customer base, then the brands can leverage each other’s strengths to capture the target market, mitigating the risks with economies of scale. Sony and Ericsson co-branded various products ranging from the walkman to mobile devices. Both of them clubbed their resources and technologies to bring about product innovation and improving its core attributes. As a result, these products were highly successful in the market drawing immense traction and brand value.

 Signaling: Co-branding can be a technique to present information to consumers. Co-branding helps the brands to share the same platform, in which the higher valued brand can rub off on the lower valued brand bringing its worth up. The brand image and power of one can help other brands in skipping steps creating the perception of equal value. In other words, it becomes a signal for customers that the primary brand has invested or sought to be a part of other brands, which recognizes those brands equal

Their needs and desires have evolved. It is a time where multi-tasking is rising, and similarly they want entertainment and interaction with any activity for a better experience. Co-branding changes the traditional marketing, making the world more interactive, innovative, and easier to connect with. As a result, real time advertising is something that draws from co-branding.

For example, let us take the Gangnam Style.

It is a real good example of a successful social campaign in the present time. 1.7 billion Video views exactly reflect its popularity. So customer now tries to engage with such social phenomena and viral marketing has taken its share. In such a world, co-branding can do wonders.

While the video may not be a marketing stint in itself, we all know the different marketing endorsements that Psy, the lead singer received after the video went viral. In other words, everyone wants to co-brand this sensation and ride the bandwagon.

The present and future times requires brands to associate and leverage such social phenomena, to make that emotional connect with the