Benefits of co-branding partnerships
In a recent survey, it was found that more than 50% of businesses believe that a co-branding partnership can account for more than 20% of their revenue.
Among the various types of branding, co-branding is one of the most effective methods to help your company and brand reach new heights.
Increased brand recognition
If your company chooses to develop a co-branded product, you will be placing your brand alongside another brand, which means that your brand will be recognized by an additional target audience.
For example, if you develop a co-branding campaign with a brand that has a million social media followers, the collaboration will be presented to those million followers, some of whom may not already know about your company. This can be especially effective for local co-branding within a certain market, such as a brand partnership with a local restaurant.
Access to new markets
Your company can also take advantage of co-branding to reach new markets. Again, by taking advantage of the target audience of the other brand, your company could potentially reach a completely new market.
For example, if your company teamed up with a well-known brand that targets a younger demographic, you will have access to a whole new market of potential customers who may not have been aware of your products and services before. By tapping into this new market, you can increase your brand awareness and attract more attention to your other product offerings.
Enhanced brand reputation
If your company is relatively unknown, developing a co-branding partnership with a larger company or national brand can help you enhance your own brand's reputation.
The opportunity to have your brand associated with the positive reputation of another company can help get the word out about your company and develop customer loyalty and brand trust in a new and effective manner.
Developing a co-branding campaign with another company can give your brand a competitive advantage because it increases your market share and product offerings. You can appeal to more customers than other companies in your industry, giving you an upper hand.
Combining resources from both companies puts your brand at a unique advantage that others can’t compete with, which helps to increase your reach.
Tips for effective co-branding
To develop a successful promotional marketing strategy for your new co-branded products, both parties will need to contribute their respective resources for the good of the partnership.
Below are some important things to keep in mind as you approach a new brand partnership and work through the process of creating a successful co-branding campaign.
Create a memorable brand name
One of the first steps in creating an effective co-branding partnership is choosing a branding method both companies agree on. After deciding the best way to approach branding, then you need to come up with a memorable brand name.
Your company wants to ensure that both brands are well-represented, and the most effective way to do this is to include variations of both brand names in the new name.
Focus on communication
If you are participating in a multiple-sponsor co-branding campaign, communication is going to be even more important. In a brand partnership with two or more companies, it's very easy for things to get miscommunicated about individual brand expectations and what will be required of each company.
By focusing on communication, you can develop a successful co-branding strategy that will include how the new brand will be marketed and what each party in the partnership will need to contribute to ensure success. Without communication, resources will be wasted, and the campaign may be unsuccessful.
Equitable sharing of resources will help ensure that both parties are getting a good return on their investment in the partnership.
Even if one company is larger than the other, both companies should share knowledge, personnel, marketing efforts, technology, etc., in a way that ensures one company is not saddled with all of the costs of developing the co-branded product and campaign.
In today's digitally connected world, one of the basics of branding is using social media to build your brand and reach new customers. Whether you use targeted ads or influencer campaigns, social media can play a big role in a co-branding joint venture.
As stated earlier, both companies involved in the new co-branded product will be given access to the other's social media followers, but it does not end there.
By using social media as part of your digital marketing strategy, both brands can reach new audiences of potential customers who might not have known about the brand otherwise.
Maintain brand image
When all is said and done, at the end of the day, you want to make sure that your brand maintains its image.
There have been a number of co-branding endeavors that left one partner brand worse off due to a problem with the other brand. To avoid something like this, make sure you carefully evaluate the companies and brands you are looking to work with to ensure you can maintain your brand image throughout the entire experience.