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What is Co-Branding and How Could It Help Your Business

29 Feb I

Despite there being hundreds of examples of it in everyday life, co-branding remains a bit of a mystery to those unfamiliar with the term. If you’re one of the few people who knows exactly what co-branding is, you’ll no doubt be able to attest to just how helpful it can be for businesses. If you’re not, we think it’s about time you were enlightened to this most advantageous of marking strategies.

So What is Co-Branding?


In its most basic terms, co-branding is when two or more companies form an alliance and market their products under a number of different brand partnerships, often in the form of sponsorships. The idea behind co-branding is to form a sort of marketing synergy between all companies associated with the partnership. This agreement often ties a single product or service to more than one brand name, so that each company can benefit from cheaper operating costs, more streamlined processes and greater exposure for their individual brand.

How Does it Work?


Co-branding may sound the sort of thing that could be tricky, expensive and time-consuming to get into as a small business owner, but partner up with the right competitors and you’ll soon see results. In its simplest form, co-branding normally falls into three brackets: market share, brand extension and global branding.


The first level of co-branding, market share, is intended to help smaller businesses penetrate an already established market and gain a larger foothold than one they’d be able to secure themselves. To do this, companies normally combine resources and share the cost of promoting multiple products at once.


The second level of co-branding, brand extension, is used when companies want to increase their overall brand exposure, and make strides towards claiming a larger share of the market. Working together to pool resources, individual brands can boost their own exposure and profitability.


The third and final level of the basic co-branding model, global branding, is used when companies want to penetrate another global marketplace — often where their partner company is based. By using the same branding but changing the company name, each company benefits from increased brand exposure in the country they’re hoping to penetrate.


Show Me Some Examples


Often the easiest way to understand a new fandangle marketing strategy is to see it in action, so here are a few examples of co-branding that you may or may not have seen on a TV, radio or billboard near you.


The Art of Shaving + Gillette


The Art of Shaving & Gillette joined forces on a recent co-branding campaign, designing a new premium razor system that incorporates products from both companies.



Garmin + Asus

 Satellite navigation manufacturer, Garmin, and laptop specialist Asus teamed up to create the Nuvifone — a smartphone with advanced location-based tracking capabilities.


Walkers + Lays


Ever been on a foreign holiday? Then you’ll no doubt have been stunned upon spotting a packet of Walkers branded with the trademark for Lays. That’s because the two brands came together to promote their savoury snack range; this is a perfect example of global branding in action.


If you aren’t quite ready to commit to a co-branding campaign with a rival firm, why not stick to a promotional gifting strategy? Leighmans has a range of over 4,000 top quality promotional gifts and products, helping you plan the perfect publicity campaign for your business. To find out more, visit the homepage or call us on 0800 169 0898.



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