Co-Branding - How does it work? Advantages, Types, Examples & Case studies of Co Brands (131)

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Co-Branding refers to the concept of aligning two well-known brands and creating a new third brand that is entirely different from the other two brands.
Co-Branding is also considered a strategic alliance where a product or service is marketed under more than one brand name.
Example - Nike + iPod
How Does Co-Branding Work?
- The brands must have enough individual brand awareness in the market to create a positive impression beforehand.
- The brands must prove a fit and complement each other.
- The offering must ensure increasing the overall advantages and decreasing the overall disadvantages.
Benefits of Co-branding
- Boosts brand positioning
- Open new opportunities
- Stimulate sales
- Shared risks
- Helps to gather more data about the consumer
- Minimizes marketing costs
Drawbacks of Co-Branding
- Lack of full control as adjustments are necessary for co-branding
- Consumer expectation is too high and it can work against the new brand
- The overuse of the brand name might prove harmful in the long run
- If one brand falters then the impact is on all the associated brands
- Sometimes the new product becomes highly popular at the cost of the individual brands
Types of Co-branding
Ingredient Co-branding
Ingredient Co-branding refers to the concept of using an element of the business and branding it as a separate and specific entity.
This adds value to the parent brand as their product looks superior to those of the competitors
Composite Co-branding
Composite Co-branding occurs when two established brands collaborate to create a strong marketing plan.
Case - GoPro & Red Bull
GoPro & Red Bull have aligned with each other to project a picture of adventure by capturing events like action sport and races etc. on camera.
Example - Airbnb & Flipboard
Airbnb & Flipboard have entered into a partnership to show lifestyle content.
Conclusion
Co-branding helps to create a favorable environment for the related brands so that it proves advantageous for everyone
This video is on Co-Branding and it has the following sub-topics.
Time Stamps
0:00 What is Co-Branding?
01:04 How Does Co-Branding Work?
01:51 Benefits of Co-branding
02:21 Drawbacks of Co-Branding
03:04 Types of Co-branding
03:10 Ingredient co-branding
03:30 Composite co-branding
03:57 Case - GoPro & Red Bull
04:51 Example - Airbnb & Flipboard
05:36 Conclusion