Occurs when two established brand names of different companies are used on the same product

1. Co-Branding Meaning

Co-branding is a strategic marketing arrangement wherein two brands form an allegiance to launch a particular product or service. This partner branding approach is a way of leveraging one brand’s market goodwill upon another. It combines the brand awareness, customer base, market strength, and positive image of two or more brands involved in the association. Co-branding is a vast concept that comprises a myriad of strategies to meet the requirements of numerous industries.

All businesses should know the answer to – “what does co-branding mean?” and make the most of current market conditions. We have curated all the information you need to get a hold of this branding concept.

2. Types of Co-Branding

Co-branding does not qualify as a one-shoe-fits-all marketing strategy. Companies may form a contract keeping their branding goals, industry operations, and product needs in check. Therefore, co-branding is creative branding information categorized into three sections.

Ingredient Co-Branding

Ingredient co-branding is what brings two or more brands together based on compatible elements. The matching feature combines the personalities of both brands to produce goods and services for the customers. The most successful example is the co-branding deal between Intel and Dell.

Composite Co-Branding

Composite co-branding is a marketing strategy wherein brands collaborate to promote exclusive co-branded products among existing customers. This approach works well using the positioning and personality of the involved brands.

National & Local Co-Branding

As the name suggests, national and local co-branding is when a national company reaches out to successful local brands to reach out to the local audience. Local businesses also get the opportunity to make a national presence in the market. Co-branding examples in this category vary from one industry to another.

3. Co-Marketing Vs. Co-Branding: The Difference

Co-branding and co-marketing may seem like similar concepts but have significant differences. Co-marketing is when two or more firms come together to align their marketing efforts to boost business growth. Co-branding focuses on the creation of a new product or service under the banner of partner brands. It is a joint venture by design that focuses on offering something new to customers.

4. The Need for Co-Branding in Today’s Market

Co-branding strategy is a splendid way of creating marketing synergy and utilizing the market presence of the partner company. Today’s market frequently observes new companies stepping into the competition. Companies can collaborate on similar interests rather than competing to get maximized gains. Since this collaboration reduces individual risks significantly, it forms better receptivity and acceptance.

5. Collaborate For Co-Branding With VOWELS

Have you been looking for a partner branding opportunity? If yes, you can commence your co-branding journey with VOWELS. We will look after all the combined packaging designs, logo designs, and all other co-branding requirements. Our team conducts detailed market analyses to help our clients get the best of everything. Contact us for more information.

6. FAQs

Q. What is cross-branding?

Ans. Cross-branding (commonly referred to as co-branding) is a marketing strategy that brings two or more brands to form an allegiance for selling a product/service.

Q. What occurs when two established brand names of different companies are used on the same product?

Ans. In most cases, the result of this type of partnership is beneficial for both companies. It unites their separate customer bases and increases their growth prospects.

Q. Which branding agency does the best co-branding?

Ans. VOWELS is one of the widely recognized names in the branding sector. It helps with the end-to-end branding needs of companies, including co-branding.

Co-branding is a marketing strategy that involves strategic alliance of multiple brand names jointly used on a single product or service.[1]

Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.

An early instance of co-branding occurred in 1956 when Renault had Jacques Arpels of jewelers Van Cleef and Arpels turn the dashboard of one of their newly introduced Dauphines into a work of art.[2]

Co-branding (also called brand partnership)[3] as described in Co-Branding: The Science of Alliance, is when two companies form an alliance to work together thus creating marketing synergy.[4]

Digital co-branding[edit]

Digital co-branding is a digital marketing strategy which follows the basics of co-branding, but aligns advertiser's brand with digital publisher that has the same target audience. Publishing platform would have to give up some editorial control to activate content for advertiser's brand. Travel websites are more open to building co-branding programs. They engage their audience in every process throughout the booking process. For example, snow update website features its ad on ski resorts website. If the co-branding ad placed is relevant and engaging, it is more effective than a normal internet ad. It helps the advertiser to connect and interact with more consumers.[5]

For example, The Huffington Post have partnered with Johnson & Johnson on topics like woman and children written by Huffington Post independent reporters.[6]

Digital co-branding should be carried out along with Programmatic buying to be more efficient and effective in Digital Media Marketing Campaigns.[7]

Types of co-branding[edit]

The two types of co-branding are Product-based co-branding and Communications based co-branding.[8]

Product-based co-branding[edit]

Product-based co-branding is a marketing strategy that involves linking of multiple brands from different companies in order to create a product indicative of their individual identities. Product-based co-branding maybe categorized into Parallel and Ingredient co-branding.[9]

Parallel co-branding[edit]

Parallel co-branding is the marketing strategy where multiple brands come together and create a combined brand.[10]

Ingredient co-branding[edit]

Ingredient co-branding is a marketing strategy carried out by a supplier where an ingredient of a product chooses to position its brand.[11]

Advantages of product-based co-branding[edit]

[12]

• Value addition and differentiation
• Access to new customers
• Better integrated communication
• Positioning
• Reduction of product introduction cost

Disadvantages of product-based co-branding[edit]

[13]

• Loss of control
• Poor performance of co-brand

Communications-based co-branding[edit]

Communications-based co-branding is a marketing strategy that involves linking of multiple brands from different companies in order to jointly communicate and promote their brands.[14]

Advantages of communication-based co-branding[edit]

[15]

• Endorsement opportunities
• Sharing advertising costs
• Resource sharing
• Enhances awareness

Disadvantages of communication-based co-branding[edit]

[16]

• Difference of opinion
• Negative co-brand image
• Poor performance of co-brand

Intent[edit]

According to Chang, from the Journal of American Academy of Business, Cambridge, there are three levels of co-branding: market share, brand extension, and global branding.

• Level 1 includes joining with another company to penetrate the market.
• Level 2 is working to extend the brand based on the company's current market share.
• Level 3 tries to achieve a global strategy by combining the two brands.

Forms of co-branding[edit]

There are many different sub-sections of co-branding. Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once. The forms of co-branding include: ingredient co-branding, same-company co-branding, national to local co-branding, joint venture co-branding, and multiple sponsor co-branding. No matter which form a company chooses to use, the purpose is to respond to the changing marketplace, build one’s own core competencies, and work to increase product revenues.

One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products.

Examples:

• Betty Crocker’s brownie mix includes Hershey’s Chocolate Syrup
• Pillsbury Brownies with Nestlé Chocolate
• Dell Computers with Intel Processors
• Kellogg Pop-tarts with Smucker’s fruit

Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously.

Examples

• Kraft Lunchables and Oscar Mayer meats
• Courtyard by Marriott, a hotel brand (Courtyard) operating under Marriott International's signature brand (Marriott)

National to local co-branding occurs when a local small business teams up with a national brand or network to target local audiences and interests.[17][18]

Examples:

• Visa co-branding credit cards with local retailers[19]
• Auto manufacturers with local dealerships

Joint venture co-branding is another form of co-branding defined as two or more companies going for a strategic alliance to present a product to the target audience.

Example:

• British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airways Executive club.

Finally, there is multiple sponsor co-branding. This form of co-branding involves two or more companies working together to form a strategic alliance in technology, promotions, sales, etc.

Example:

• Citibank/American Airlines/Visa credit card partnership[20]

Relationship between brand equity, brand association, and co-branding[edit]

Brand name indicates the customer about their connection with the brand based on information or experience. Brand equity defines the association of consumer towards a brand name. The original brand name is familiar among the customers whereas the co-branded brand is still new. There are plenty of associations of consumers towards co-branded products. Therefore, the customer’s use constituent brand information when there is absence of new brand formed by co-branding. When there is a negative image caused by one of the constituent brand, it also affects the other constituent brand. Brand equity can be damaged by pairing up with a brand which may have negative image in future. Brand association is developed over the years by repeated experiences and exposures. It helps customers gather information, differentiate it and come to a buying decision. Co-branding can either improve or destroy customer’s perception of each constituent brands and create a new perception for the co-branded product.[21] Research suggests that the dissimilarity between co-branding organizations (company size, company origin country, industry scale) negatively affect the performance of co-branding organizations.[22]

See also[edit]

• Brand
• Business partnering
• Colocation (business)
• Cross-promotion
• Marketing co-operation
• Store brand

Further reading[edit]

• Kalafatis, S., N. Remizova, D. Riley and J. Singh (2012), “The Differential Impact of Brand Equity on B2B Co-branding,” Journal of Business and Industrial Marketing, Vol. 27, Issue 8, pp. 623–634.
• Litvinov, Nikolai. Hi-level Cobranding // Identity. — 2007. — №13(4). — pp. 96–105.
• Singh, J., S. Kalafatis, and L. Ledden (2014), “Consumer Perceptions of Cobrands: The Role of Brand Positioning Strategies,” Marketing Intelligence & Planning, Vol. 32, Issue 2, pp. 145–159.
• Wei-Lun Chang, “A Typology of Co-branding Strategy: Position and Classification,” Journal of American Academy of Business, Cambridge (JAABC), Vol. 12, No. 2, March, pp. 220–226, 2008.
• Jose Ignacio Monrabal, "When should you Co-Brand? Seven Questions to Help Determine In Which Cases Co-Branding Is Right for Your Organization," Ad Age, July 2016.
• Inkbot Design, "Co-Branding: Benefits, Strategies and Examples," ID, February 2022.

References[edit]

1. ^ Erevelles, Sunil; Stevenson, Thomas H; Srinivasan, Shuba; Fukawa, Nobuyuki (2008). "An analysis of B2B ingredient co-branding relationships" (PDF). Industrial Marketing Management. 37 (8): 940. doi:10.1016/j.indmarman.2007.07.002.
2. ^ "History". Cafe Restaurant Dauphine. Archived from the original on 9 February 2010. Retrieved 13 July 2010.
3. ^ "Brand partnerships – SCHMOOZY FOX". Archived from the original on 3 April 2010. Retrieved 24 March 2010.
4. ^ "Competing for Customers and Capital". Southwest Airlines: Put a Little LUV in Your Logo!. customersandcapital.com.
5. ^ "Digital Co-Branding: The Anti-Programmatic Buying Strategy". adexchanger. 24 June 2013.
6. ^ Vega, Tanzina (8 April 2013). "Sponsors Now Pay for Online Articles, Not Just Ads". The New York Times.
7. ^ "Digital Co-Branding: The Anti-Programmatic Buying Strategy". adexchanger. 24 June 2013.
8. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
9. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
10. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
11. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
12. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
13. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
14. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
15. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
16. ^ Principles and Practice of Marketing (8th ed.). McGraw-Hill Education.
17. ^ "From National to Local – The New Co-Branding Paradigm". Archived from the original on 6 September 2016. Retrieved 31 December 2014.
18. ^ Steve McKee. "The Pros and Cons of Co-Branding". Businessweek.com.
19. ^ "Visa USA – Merchant Marketing".
20. ^ Wei-Lun Chang, “Roadmap of Co-branding Positions and Strategies”, Journal of American Academy of Business, Cambridge (JAABC), Vol. 15, September, pp. 77–84, 2009.
21. ^ "Relationship between co-branding, brand equity and associative learning". Co-branding: Brand Equity and Trial Effects. doi:10.1108/07363760010357796.
22. ^ Decker, Carolin; Baade, Annika (November 2016). "Consumer perceptions of co-branding alliances: Organizational dissimilarity signals and brand fit". Journal of Brand Management. 23 (6): 648–665. doi:10.1057/s41262-016-0013-5. ISSN 1350-231X. S2CID 53466509.

When two established brand names of different companies are used on the same product this is an example of?

What occurs when to establish brand names of different companies are used on the same product?

When a company adopts the same brand name for different brands in a particular product line is called as?

What are the types of brand extensions?