All You Need to Know About Co-Branding Partnerships

Co-Branding Partnerships: Nowadays, many leading brands form strategic partnerships amongst themselves for advertising purposes and to increase the value of their trademark. This is done to improve their marketing efficiency and create collaboration amongst two non-competing brands. They align their efforts towards their target audience and create promotional strategies together, to create a mutually beneficial partnership between the two involved parties. There are many examples of successful co-branding partnerships, even amongst those companies which were considered to be formidable rivals such as McDonald’s and Burger King. However, they came, and they conquered!

If done successfully, co-branding partnerships can be a successful brand strategy that now only helps increase brand awareness, but also to tap into newer markets and grow the business further. It also increases the value of a registered trademark and makes your trademark an invaluable asset. Huge brand names such as Apple, Amazon, Spotify, and Nike etc. have all got in on the action and gained a tremendous response from their customers.

How to Choose a Partner for Your Brand?

There is no hard and fast rule regarding what type of brands should partner up. These partnerships can include anything from events to competitions etc. However, you should consider some aspects before you decide on taking on the co-branding strategy for your business. Here are a few things to look for in an ideal brand partnership:

1.     Shared Values

Every brand is defined by the values it puts out into the world. You must make sure that your values do not clash with your potential partner brand’s values. These values should align in a way that they aim to provide something similar to your targeted customers. This can be better quality or lower prices etc. Even if your brands share the same ethics, e.g. going green initiatives, it will help you find something tangible to align your actions further.

2.     Relevant Consumers

You should make sure that your brands are not targeting completely opposite crowds; otherwise, it can get challenging to expand your horizons. The partnership should not seem forced. That is why some consumer relevance is necessary beforehand. You will not benefit if you decide to co-brand with a partner that does not even understand your audience.

3.     Aligned Objectives

Although it is not necessary to have the same targets, the overall objective of the partnership should be the same. For example, both brands must either be looking to build awareness or boost their sales. This will help to keep your marketing activities more focused.

4.     Trust

Perhaps the most important aspect to consider before you enter such a partnership is to establish trust and respect amongst each other. You must be able to trust that your partner will work for the betterment of both the parties and be transparent and collaborative throughout the process.

The Benefits of Co-Branding Partnerships

A successful co-branding partnership can help your business achieve benefits like:

1.     A wider audience

Doubling up with a partner means you get to enjoy a much broader audience which you weren’t able to tap into before. It can pretty much, double your outreach.

2.     Create a Buzz

Sometimes, when two forces join together to create something unique, it gains much attention. You can get a lot more social media buzz, news coverage and huge traffic inflow to your websites as it gives people something to talk about. This can be very beneficial for enhancing the visibility of your business.

3.     Alters Your Brand Perception

You can also use such partnerships to change or improve the image of your brand. Some companies team up with those who have a better social responsibility image which helps them gain considerable attention from those who prefer sustainably conscious businesses.

4.     More diversification

Suppose your business has been unable to break into a market or reach out to a specific demographic. In that case, a co-branding partnership can help you break these barriers and diversify your audience. You should try to team up with a brand which already has experience regarding the demographic you want to reach out to.

5.     More Resources

Partnering up with another brand can greatly improve your resource pool. You will get insight into new marketing techniques which you were not even aware of. After all, two heads are always better than one! Experts from different fields can come together and create something out of the box that will be mutually beneficial for both the brands.

Some Successful Co-Branding Partnerships Examples from the Real World

If you need some more inspiration, here are a few successful co-branding partnerships that will help make up your mind:

Airbnb and Lego

Airbnb and Lego recently partnered up and created a huge buzz in the marketing world. They started a competition in which they targeted potential builders to create something extraordinary if they had an unlimited supply of LEGO bricks. The winner got a chance to spend a night in the new LEGO House in Denmark.

Red Bull and Go Pro

The two brands created a great partnership as one had the tools for extreme sports such as racing or stunts and the other being an energy drink. The alliance between the two proved immensely favourable due to their shared values of thrill and adventure. In one attempt, a skydiver jumped from a space pod with a Go Pro strapped to him which set three world records and put both the companies in the media’s attention.

BMW and Louis Vuitton

Although this might not seem like an obvious pairing, they have one thing in common – luxury. They are known for their high-quality craftsmanship and field travel. This is why their co-branding campaign included a new sports car model and a set of bags and suitcases designed by Louis Vuitton that perfectly fit into the car.

Starbucks and Spotify

These two brands created an innovative partnership by building a music ecosystem in which musical artists gained better access to the customers of Starbucks. These customers, in turn, enjoyed the extensive access of music through Spotify. It helps the artists get more visibility as well as extends the coffee shop experience for Starbucks goers.

Apple and MasterCard

Apple created its Apple Pay app to help people use their credit or debit cards without having the card on hand. Thus, MasterCard stayed ahead of the competition and started allowing its users to store their data on Apple Pay to create a more convenient option for their customers.

See? There are so many ways you can take advantage of a strategic co-branding partnership. The recent Covid-19 pandemic has left businesses scrambling. This is the time to try something new and exciting. And co-branding can help you revitalize your business in such trying times by giving your marketing efforts a much-needed energy boost. For more related content click here.