What is co-branding? Follow

Among the various types of marketing strategies, Co-branding is one of the most common and profitable strategies which has been prevailing in the world of business for a long time. As the name suggests, co-branding indicates a system of strategic bonding or partnership on a single product or service jointly. In other words, when two company owners jointly launch for a product or a service in the market, it is called co-branding. Co-branding is also known as brand partnership. But, it does not always mean that only two company owners can have their authority on a particular product or a service. Multiple owners can also launch for a single product or service when it comes to co-branding.

Advantages:

In the era of high competition and huge cost, co-branding has proved to be the best marketing strategy for the promotion and sale of the products or the services. Co-branding reduces and divides the cost of production, designing, and distribution of the products, services, promotion, and advertisements. It even provides an opportunity of alliance among certain big or small companies which increases the credibility of the product or the service in front of the customers. When it comes to industrial designing and research of the market, there is little or no chance of duplicating or copying of brand logos, names or colors as all the partners combine their ideas and efforts. The risk factors are also shared among the partners, and there is no chance to face the overall burden of loss on behalf of the single company itself. 

Co-branding or brand partnership covers all the areas of business starting from retail industries, electronics, manufacturing, restaurants, automobile industries, cosmetics, food and processing units, etc. There are various methods through which co-branding strategies are being functioned:

1. Retail co-branding – Here, the retailers from different companies join their hands together and share their resources to earn better. 

2. Same company co-branding – Here two different products of the same company are promoted or co-branded. 

3. Multiple co-brandings – Here, the same products or services are promoted by two or multiple companies. 

4. Joint venture co-branding – Here partnership is held when there is a space for providing discounts or coupons. 

In spite of certain advantages, there are quite more issues too. As co-branding deals with the partnership and alliance of two or more brands; thus, when there is an occurrence of loss, then both the companies will face it. 

Also read:  What is a personal brand and why is it important?