In business, working with other companies can be advantageous, branding-wise. Just as partnering with influencers on social media can be a great way to increase your exposure and following, thus generating more revenue for your business, so is working with another brand to create a joint product or service representing your brand identity. This practice is called co-branding, and it can help you break into new markets and boost awareness.
Some businesses are skeptical about melding their brand with another, and that is understandable. However, joining forces with a company that shares your values can reflect positively on your brand. In addition, when you partner with the right brand, you may enhance your brand’s credibility and recognition as you break into new markets and grow. New audiences are likely to trust you when you work with a reputable brand.
The first step is to identify a brand that you like, and feel would make a good partner. This brand does not necessarily have to be a competitor, but it must compliment your brand identity. For example, Taco Bell and Doritos are big brands that worked well together because they are in the food industry and promote Mexican flavors. They collaborated on the Nacho Cheese Doritos® Locos Taco, which was successful—they sold a billion units in the first year alone and gained new fans.
Betty Crocker and Hershey’s are two popular brands that are well-liked by bakers and lovers of chocolate. Their co-branding worked well because they promote deserts (who doesn’t love a great after a meal?). They were able to create a stronger brand through reinforcement, which has had a lasting impact beyond the partnership itself. Their advertisement became so commonplace that customers formed associations related to each brand and infer a similar level of quality between them.
Co-branding appears to be popular with bigger businesses, perhaps because they have already established themselves in various markets. Also, they have the funding and budget to invest in advertising campaigns. Therefore, smaller businesses should be cautious with the brands they choose to collaborate with and how they choose to do it. The right brand partner will be committed to sharing resources and costs for advertising purposes. A lesser quality brand, however, can damage a new and/or small company.
Before you consider co-branding, evaluate your brand’s positioning and target audience. Would your potential consumers react positively to your partnership with another brand? Would co-branding boost your image and quality and increase revenue? There’s no guarantee for a good outcome; however, a good marketing strategy can ensure a successful co-branding execution. Working with a brand company with years of expertise in branding and advertising may help in this instance. Contact us for more information.
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