Co-branding is a advertising technique for companies to work collectively and attain a wider viewers with new merchandise. In line with one survey, 71% (practically three-quarters of customers) get pleasure from co-branding partnerships and the brand new product choices they convey about.
All through this text, we’ll discuss extra about what co-branding is, the advantages of the technique and introduce some standard examples of co-branding carried out proper.
Desk of contents:
What’s co-branding?
Co-branding is a advertising technique the place two manufacturers collaborate along with the top objective usually being a brand new, collaborative product. We’ll cowl extra examples shortly, however one well-known co-branding partnership includes McDonald’s and their McFlurry choices.
McDonald’s has two standard co-branded McFlurry’s: Oreo and M&Ms.
That is an instance the place two manufacturers (McDonald’s and Oreo or McDonald’s and M&M) have partnered collectively to create a brand new product providing for his or her mutual clients.
Co-branding vs. co-marketing
We’ve talked about co-marketing on the Sprout Social weblog earlier than—nevertheless it’s key to know that whereas these two key phrases sound very comparable, they’re two completely different methods.
As we talked about, co-branding is a method the place two manufacturers work collectively to create a brand new product with each model names connected to it.
On the opposite finish of the spectrum, co-marketing is a method the place two manufacturers work collectively on a one-off advertising marketing campaign or promotion.
One instance of that is Pottery Barn and Sherwin Williams. These two complementary manufacturers have created advertising promotions that allow them to assist clients discover each the suitable furnishings and the suitable paint colours for his or her houses.
Advantages of co-branding
Pondering of investing in co-branding? There are a number of advantages and benefits one of these advertising technique can have for your corporation.
Exposes your model to new audiences
Co-branding means that you can attain an excellent wider viewers by partnering with a model of equal or larger caliber than your individual. This thrilling perk makes it a lot simpler to market co-branded merchandise.
Improves model credibility and repute
While you associate with a reputable model, it inevitably will increase your individual model’s credibility. Enhance your model’s repute by working with well-known manufacturers which have optimistic model sentiment. On the identical time, be cautious about working with manufacturers which will have a unfavourable sentiment.
Generates extra gross sales
Co-branded merchandise can improve gross sales for your corporation. In line with information from the identical survey we talked about earlier, 43% of customers say they’d attempt a co-branded product from a model they already like—and with two audiences, that’s double the curiosity.
Saves prices on advertising
While you and one other model are partnering on the promotion of a brand new product, it normally requires much less out-of-pocket advertising prices. Save on advert campaigns, branded belongings and extra— because you and the opposite model will probably be splitting the prices.
Co-branding examples
There are such a lot of co-branding examples proper beneath your nostril that you just may not even have realized. Let’s stroll via a number of standard examples of co-branded merchandise so you will get an thought of which co-branding technique would possibly work finest on your model (and its fortunate future associate).
Nike and PlayStation
This Nike and PlayStation co-branding partnership is a comparatively new one. You’ve doubtless heard of the recognition surrounding the recently-released PS5. Everybody has been making an attempt to get their arms on one among these new gaming techniques for the 2020 vacation season—and over two years later, they’re nonetheless tough to seek out.
To capitalize on the hype, PlayStation partnered with Nike to create a particular pair of branded PS5 signature Paul George sneakers.
These sneakers have been launched in mid-2021, simply seven months after the discharge of the Ps 5. This was excellent timing, serving to to extend curiosity on this co-branded product in anybody within the PlayStation 5.
Coca-Cola and Lip Smackers
Lip Smackers—a model initially generally known as Bonne Bell—kicked off its co-branding partnerships in 1975 when it partnered with Dr. Pepper to create its first soda-flavored lip balm.
Nevertheless, one among their longest-lasting co-branding partnerships—that also exists to this present day—is with Coca-Cola. The truth is, Lip Smackers now has a whole line of Coca-Cola-flavored lip balms bought in a single assortment. This contains flavors like Coca-Cola, Cherry or Vanilla Coke, Sprite, Root Beer and Fanta.
This co-branding partnership has been a Millennial favourite because the ’90s and doesn’t look to be letting up any time quickly. Some manufacturers final via the check of time—attempt to see should you can associate with one which appears to be simply as lastingly standard.
Hershey’s and Betty Crocker
We already talked about that ingredient co-branding sorts are standard—right here’s one other one in an identical vein. Betty Crocker is a model well-known for its cake mixes, frostings and different kinds of desserts which can be able to be made at dwelling. The model partnered with Hershey’s to create cookie mixes, cupcake mixes and cans of frosting based mostly on varied Hershey’s desserts.
As we are able to see under, among the favorites included Reese’s, Hershey’s Cookies ‘n’ Creme, Hershey’s Chocolate Chunk and Almond Pleasure.
As a result of each manufacturers specialise in sweets and desserts, a co-branding partnership like this makes excellent sense. When you think about which manufacturers you would possibly need to associate with, be sure that it’s one with a complementary or comparable product—although not a direct competitor.
For instance, you’d by no means see a co-branding partnership between Hershey’s and Nestle as a result of they primarily promote the identical product. That sort of collaboration wouldn’t make sense. However Hershey’s and Betty Crocker create a wonderful conglomeration of two completely different worlds of desserts—cookies/cake and sweet.
Clorox and Proctor & Gamble
It is a little bit of a loaded instance merely as a result of sheer variety of manufacturers beneath each the Clorox title and the Proctor & Gamble title. Nevertheless, there are a few well-known co-branded merchandise because of this partnership.
Clorox homes manufacturers like Glad (assume rubbish luggage) and Recent Step (assume cat litter) whereas one standard Proctor & Gamble (P&G) model is Febreze. Febreze, an air freshener, has partnered with each Glad trash luggage and Recent Step cat litter to assist block odors from each.
It is a sensible partnership as a result of Glad and Recent Step each work in a smelly enterprise—rubbish and pet waste. However with the assistance of Febreze’s odor-masking capabilities, the 2 manufacturers are capable of provide a very engaging distinctive promoting level (USP).
Think about your product’s use circumstances. Is there one other model which may assist make your product much more engaging? You’ll be able to nonetheless promote your standalone product—however then you’ll be able to promote a co-branded product at a premium value level, making the partnership useful to each you and the concerned model(s).
Create your individual co-branding technique
Think about reaching out to different manufacturers to brainstorm your individual co-branding partnership concepts. Put collectively a listing of manufacturers that it’d make sense to associate with and join with their advertising groups.
Searching for extra concepts to take your advertising to the following stage? Take a look at our checklist of advertising marketing campaign concepts that can enhance your model engagement.
