What is co-branding and how two online companies can work together?

Posted by brandsair on September 25th, 2017

What is co-branding?

Co-branding is a situation where two or more brands share space on a product, advertisement, or any other promotional or business offerings. Co-branding creates marketing synergy by forming a larger overall customer base which combines the brand existing customers, highlighting the best aspects of each brand. An online business engaging on co-branding have the additional visibility of their website and other online properties that help them further to promote their campaign.

How online business gets benefit from co-branding?

Co-branding can be approached from different angles potentially more than one. When properly leveraged between compatible brands, it can be mutually beneficial for both the companies. It is mainly profitable for e-commerce companies who are looking for higher visibility.

Types of co-branding

Co-branding is used for different applications, depending on the business needs of brand involved. Here are some categories:

Component Co-branding: Such as food brands creating a new product that combines their specialty ingredients. Or multiple technology companies using each other's components in order to create a new product.

Joint venture Co-Branding: Multiple companies collaborate on a larger shared goal, like creating a new technology which they co-own.

Sponsorship Co-Branding: Two or more brands sponsor an event together, such as sports, for a shared exposure and goodwill in the market.

Specialist Co-Branding: An organization with a single profound core competency seeks to partner with different organizations to highlight its product or service.

Media Co-Branding: Movies, video games, and other media consumers are often co-produced between different developers, studios, and publishers with shared credit.

Benefits of Co-branding

The cost of launching a brand new product is less when you add an existing product or brand to the mix instead of creating entirely a new product. Also, a wide range of customers can be reached since fans have already been found and made.

Furthermore, there is always risk involved in starting a new business. Franchisees are most likely opening a franchise because inherently it is less risky than building a business from scratch. They’re signing on to open a name that already has proven a success. However, there is always a level of risk involved. Co-branding allows the franchise to diversify that risk.

Co-marking makes various income streams, use costs, builds more connections and expands the capacity to pull in more audiences with a similar advertising dollars. For Brands, co-branding has turned out to be an extraordinary approach to extend market share and keep developing the organization. Read more… http://brandsair.com/Home/CoBrandedUserList