‘Co-branding is a marketing strategy that utilises multiple brand names on a good or service as part of a strategic alliance’. (Kenton, 2018). The main reason large businesses synergise and use co-branding techniques is to combine their market strengths, increase their brand awareness and to fundamentally create a niche and exclusive product for their target consumers to enjoy. This form of marketing is also established in order for companies to expand their reach and attract a new range of customers for their target market.
There are two different forms of co-branding, these include:
- Ingredient co-branding
this is when a business uses a ‘renowned brand as an element in the production of another renowned brand’. An example of this could be Dell computers and its co-branding strategies with Intel and its processors. This form of co-branding leads to higher quality products, increased promotions, significant distribution channels and larger profits.
- Composite co-branding
When ‘two renowned brands join together for a promotion and collectively offer a district product or service that could not be possible individually’.
This being said, co-branding is a different concept to c0-marketing, which fundamentally ‘aims to deliver greater results in terms of visibility, reach, and sales advances that could not have been accomplished without the support of another brand’. (Stec, 2013). Marketing wise however, this means two brands do not need to create a new product together and it is seen as more of a partnership than a collaboration. An example of co-marketing could be Evian water partnering up with Wimbledon.
Campaigns such as:
- RedBull and GoPro
- Uber and Spotify
- Nike and Apple
- Netflix and ESPN (as seen in the picture above)
Are all prime examples of successful marketing strategies adopted by major multi national corporations. ‘This strategy often has advantages to companies bottom lines, and consumer reaction is often positive’. (Williams, 2016).
The Netflix and ESPN collaboration was a success with its ’30 for 30′ series. Unfortunately, Disney who are the parent company decided to create its own sports streaming service, and the series disappeared from Netflix. This being said, the companies will be teaming up again to create a new Michael Jordan documentary series that will debut in 2019. (Seppala, 2018).
Reference:
Humanservices.ucdavis.edu. (2019). Integrated Services and Co-branding | UC Davis Continuing and Professional Education | Human Services. [online] Available at: https://humanservices.ucdavis.edu/programs/resource-center-family-focused-practice/integrated-services/co-branding [Accessed 18 Mar. 2019].
Kenton, W. (2019). Co-branding. [online] Investopedia. Available at: https://www.investopedia.com/terms/c/cobranding.asp [Accessed 16 Mar. 2019].
Seppala, T. (2018). Netflix and ESPN are working on a Michael Jordan documentary series. [online] Engadget. Available at: https://www.engadget.com/2018/05/15/netflix-espn-michael-jordan-documentary-series/?guccounter=1&guce_referrer_us=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_cs=iye4LIIRwthNXLzrFbZLrw [Accessed 19 Mar. 2019].
Stec, C. (2013). Co-Marketing Vs. Co-Branding: What’s the Difference?. [online] Impactbnd.com. Available at: https://www.impactbnd.com/co-marketing-vs-co-branding-whats-the-difference [Accessed 17 Mar. 2019].
Williams, M. (2016). 6 Examples of Great Co-Branding. [online] Altitude Branding. Available at: http://altitudebranding.com/6-examples-great-co-branding/ [Accessed 16 Mar. 2019].