Co-branding is a market strategy that makes immense sense - Two or more famous brands, usually with unconnected production or marketing activities. The idea is to create a burgeoning atmosphere that enables growth of all the parties concerned. You can also call it brand partnership. A marketing synergy thus created can go a long way in furthering the goals of the companies.
All the parties can use anything connected with the product like brand identifiers or logos in order to promote the product. Two premium brands joining hands has certain respectability attached to it and it goes some way in convincing discerning customers to decide upon buying the product.
It may also involve identifying some other entity instead of the actual producer or service provider. All the parties can use anything connected with the product like brand identifiers or logos in order to promote the product. Two premium brands joining hands has certain respectability attached to it and it goes some way in convincing discerning customers to decide upon buying the product. It may also involve identifying some other entity instead of the actual producer or service provider. All the parties can use anything connected with the product like brand identifiers or logos in order to promote the product. Two premium brands joining hands has certain respectability attached to it and it goes some way in convincing discerning customers to decide upon buying the product. In a co-branding alliance, both companies should have a relationship that has potential to be commercially beneficial to both parties.
Co-branding may help usage extension. In Europe, for instance, Bacardi and coke advertise together. This helps Bacardi’s market penetration strategy because the ads demonstrate another way to drink Bacardi. Moreover, Bacardi’s status is a powerful endorsement for Coke as the ideal mixer. Thus the pairing also benefits Coke, which wants to remain the number one adult soft drink.
In a co-branding alliance, both companies should have a relationship that has potential to be commercially beneficial to both parties.
Co-branding agreement includes rights, obligations and restrictions that are binding on both the parties. It includes important provisions and needs to be carefully drafted to give clear guidelines to the parties involved.