Building a strong brand is important for any business. Getting recognized and having a stable following naturally increases a brand’s success. Brands, big and small, can co-brand and work together to achieve more success. One of the advantages of co-branding is that the fans of two or more brands can be enticed to try a product offered by their favorite brand, and for the business, this means more sales.
Here are the other advantages of co-branding that businesses should remember:
- Increased revenue by having “more” interested individuals – By using co-branding as a marketing strategy, two businesses can combine their target audiences. This would therefore result in more chances of selling the product to a niche which may have previously been uninterested in a brand. Naturally, the sales would be split according to what was previously agreed upon by the brands that have collaborated, but by being noticed by the target audience of another business, there are greater chances of selling more products.
- Offering a “new and improved” or hybrid product – Combining the features of two brands into one product may make a product more expensive—but people may also think of it as something which is particularly great. When the best or perhaps the complementary features of the products are combined, this product will be viewed as the brainchild of two brands and can be perceived as a special product. Furthermore, such products are usually produced as limited edition releases, and this creates a sense of urgency for the target audience. Trying out this limited chance at experiencing two brands create something great together also increases the odds of selling more of a certain product.
- Publicity – The buzz created by two brands collaborating to create a new product will be enough to guarantee that more people will be interested to try. When people talk about Brand A and Brand B creating a new product together, word will spread and people will try it. With or without ads, co-branding can succeed just by word of mouth from the fans of the products. Releasing them into the market may result in a wildfire of talk when the target audience sees the new product.
These are some of the benefits of co-branding, and when done right, a product may even become a permanent collaboration instead of just a limited edition release. Of course, there should be considerations when it comes to co-branding. Thinking of what the brands have in common or how one can improve the other is one of the top concerns that marketers should consider.
There are times when even competing brands can collaborate to create great products. At times, complementary products can work together to make their target audience’s wish of having their best products together come true. Regardless of the kind of products which are collaborating, co-branding can be a successful venture when done right. May it be for apparel, food, or other services, combining the success of two brands and using it to propel a certain product forward can be a great move for businesses.
Do you think co-branding is a successful business strategy? Tell us what you think in the comments section.