Co-branding is a advertising technique for companies to work collectively and attain a wider viewers with new merchandise. In response to one survey, 71% (practically three-quarters of shoppers) get pleasure from co-branding partnerships and the brand new product choices they convey about.
All through this text, we’ll speak extra about what co-branding is, the advantages of the technique and introduce some fashionable examples of co-branding completed proper.
Desk of contents:
What’s co-branding?
Co-branding is a advertising technique the place two manufacturers collaborate along with the top aim usually being a brand new, collaborative product. We’ll cowl extra examples shortly, however one well-known co-branding partnership entails McDonald’s and their McFlurry choices.
McDonald’s has two fashionable 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 prospects.
Co-branding vs. co-marketing
We’ve talked about co-marketing on the Sprout Social weblog earlier than—however it’s key to know that whereas these two key phrases sound very related, they’re two totally different methods.
As we talked about, co-branding is a technique the place two manufacturers work collectively to create a brand new product with each model names hooked up to it.
On the opposite finish of the spectrum, co-marketing is a technique 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 prospects discover each the proper furnishings and the proper paint colours for his or her houses.
Advantages of co-branding
Considering of investing in co-branding? There are a number of advantages and benefits any such advertising technique can have for your online business.
Exposes your model to new audiences
Co-branding means that you can attain a good wider viewers by partnering with a model of equal or larger caliber than your personal. This thrilling perk makes it a lot simpler to market co-branded merchandise.
Improves model credibility and fame
If you associate with a reputable model, it inevitably will increase your personal model’s credibility. Enhance your model’s fame by working with well-known manufacturers which have constructive model sentiment. On the similar time, be cautious about working with manufacturers that will have a unfavourable sentiment.
Generates extra gross sales
Co-branded merchandise can improve gross sales for your online business. In response to knowledge from the identical survey we talked about earlier, 43% of shoppers say they’d strive a co-branded product from a model they already like—and with two audiences, that’s double the curiosity.
Saves prices on advertising
If you and one other model are partnering on the promotion of a brand new product, it often requires much less out-of-pocket advertising prices. Save on advert campaigns, branded property 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 below your nostril that you simply won’t even have realized. Let’s stroll by means of a couple of fashionable examples of co-branded merchandise so you will get an thought of which co-branding technique may work greatest 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 palms on one in all these new gaming programs for the 2020 vacation season—and over two years later, they’re nonetheless troublesome 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 referred to 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 in all their longest-lasting co-branding partnerships—that also exists to at the present time—is with Coca-Cola. In truth, Lip Smackers now has a complete line of Coca-Cola-flavored lip balms offered 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 for the reason that ’90s and doesn’t look to be letting up any time quickly. Some manufacturers final by means of the take a look at of time—attempt to see should you can associate with one which appears to be simply as lastingly fashionable.
Hershey’s and Betty Crocker
We already talked about that ingredient co-branding varieties are fashionable—right here’s one other one in the same vein. Betty Crocker is a model well-known for its cake mixes, frostings and different varieties of desserts which might 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 numerous Hershey’s desserts.
As we will see beneath, a number of the favorites included Reese’s, Hershey’s Cookies ‘n’ Creme, Hershey’s Chocolate Chunk and Almond Pleasure.
As a result of each manufacturers focus on sweets and desserts, a co-branding partnership like this makes excellent sense. When you think about which manufacturers you may need to associate with, be sure it’s one with a complementary or related 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 basically promote the identical product. That sort of collaboration wouldn’t make sense. However Hershey’s and Betty Crocker create a fantastic conglomeration of two totally different worlds of desserts—cookies/cake and sweet.
Clorox and Proctor & Gamble
It is a little bit of a loaded instance merely because of the sheer variety of manufacturers below each the Clorox title and the Proctor & Gamble title. Nevertheless, there are a few well-known co-branded merchandise due to this partnership.
Clorox homes manufacturers like Glad (suppose rubbish luggage) and Recent Step (suppose cat litter) whereas one fashionable 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 supply a very engaging distinctive promoting level (USP).
Contemplate your product’s use instances. Is there one other model that may assist make your product much more engaging? You’ll be able to nonetheless promote your standalone product—however then you may promote a co-branded product at a premium worth level, making the partnership helpful to each you and the concerned model(s).
Create your personal co-branding technique
Contemplate reaching out to different manufacturers to brainstorm your personal co-branding partnership concepts. Put collectively a listing of manufacturers that it’d make sense to associate with and join with their advertising groups.
On the lookout for extra concepts to take your advertising to the following degree? Try our checklist of advertising marketing campaign concepts that may increase your model engagement.
