Companies constantly think about how to get the most out of their strategies marketing, and one of the latest trends is the co-branding. We refer to one strategic alliance and temporary between companies to improve your profitability and positioning. We must take advantage of the power and value of the brand, and we have a lot of examples: Milka chocolate with Oreo cookies, the union between Phillips and Marcela for the birth of Senseo.
Co-branding can be given to three levels:
- Support co-branding, where a main brand invites a secondary school, with which it shares a target audiences similarly. Thus, the small takes advantage of the impulse of the large to advertise.
- Supplementary Co-Branding, one of the most used by big brands and that seeks to innovate and offer solutions together, a “win-win” for both brands, which share relevance and seek the public of the other.
- Ingredient co-branding, the collaboration between two brands that share public and values.
Advantages of co-branding that should be valued
But what are the advantages of co-branding? Discover all that this type of strategy can bring you at the business level:
We talk about a marketing strategy in which the different brands involved may take a slice. It is important that they share values and characteristics, but it is very difficult for them to lose out. Either for the innovative factor, for an attractive mix between users’ favorite products or because they reach a different audience, all actors participating in co-branding win.
Open new markets
Precisely that is another of the strengths of co-branding: it helps us to open new markets that our company, by itself, could not access. The help of a brand more important or the collaboration with another company that a already in the market could be of the competition although you share objectives allows us to open ourselves to new markets or segments of the population that we had not explored. By having this help, we strengthen our position in the market, something that the two companies involved in co-branding take advantage of.
Share marketing expenses
Another very important aspect is that We share marketing expenses with the other company that participates in co-branding. Develop a advertising campaign It is very expensive, from the process of creating it to the purchase of advertising spaces in the media, Internet or anywhere you want to advertise. Developing a co-branding will allow us to share expenses with a partner, an excellent option for entrepreneurs who are taking their first steps and cannot afford large campaigns.
Undo the competition
Thanks to the alliance with other brands, it will be easier for us to unseat the competition, which after the union between brands is in the background. Two brands are always stronger than one, so your rivals will have to increase their economic effort if they want to match the presence and differentiation of your brand Thanks to co-branding. You also have to keep in mind that co-branding will allow us to establish powerful relationships: Alliances with other companies do not have to be limited to a single marketing campaign, it is something that we can extend and take to other levels.
Even if you are an entrepreneur and your company is small, It never hurts to do some networking in search of co-branding opportunities that allow us to continue growing. The advantages are many, and the risk is minimal. Make sure that you and your partner share public and that everyone is clear about their role in this strategic alliance. You must also make it clear how the success of the campaign will be controlled, in addition to the scenarios you may face; But it is a strategy that can be very positive.