Otherwise known as a brand partnership, cobranding in the traditional sense is a clever strategy used by a number of businesses to expand market exposure, sales and cash flow. Bringing together two or more products, services or brands - a co-brand venture creates a mutually beneficial relationship where both parties blend marketing activities in such a way that stimulates a positive response from the target audience of both markets. Sounds great right?
Real world co-brand success
- Spotify + Genius (music lyrics and crowdsourced music knowledge) = Behind the Lyrics campaign
- Kanye + Adidas = Yeezys (luxury shoes)
- Nike + Apple = Nike+, a series of Apple-compatible workout apps and clothing.
But teaming up isn’t the only way to approach co-branding. Other options include co-branding through acquisition, merger, or geographic expansion.
Co-branding through acquisition, merger or geographic expansion
In the case of a merger or acquisition, what’s the best way to proceed?
Should one brand be dominant?
Does anything need to change?
And what strengths does each brand bring to the table?
5 Ways to get the most from your co-branding relationship
1. Find a company with a similar Target Market
If co-branding is something you are considering, targeting a relatable business is a great place to start. For example, if you are a B2B in consulting or technology then this opens the door to partnering with a company that provides software or a product that you are often in the business of selling.
From the outset, the campaign is likely to be quite cohesive and similar markets can mean similar needs that are transferable to your product or service.
2. Brand Integrity – Keep your essence
With any partnership, it is important not to lose sight of what is important to you, or to compromise brand values for the sake of adopting this new venture. Brand integrity is of the utmost importance. Make sure that all of your bases are covered; from how your brand will appear online, logos, landing pages, emails and even internal communication. You name it! see it before signing off. Make sure that everything going out as a result of this partnership looks great and has your tick of approval.
3.Tap into new types of Consumers
You can strategically join forces with a completely unrelated product to find yourself a new market sector. This scenario requires extensive planning and marketing strategy to maximise success but the benefits are obvious: the chance to appeal and connect with a wider variety of consumers.
4. Maximise returns with Customers, PR, Social Media
When a cobrand is the result of an acquisition, look for opportunities to leverage the new relationship. Make sure the leadership, marketing, and communication teams are all thinking about how to maximise return and squeeze all the good stuff from this venture. Some angles to consider include:
- How can you maximise the new conjoined customer base? What do they have in common?
- How can you maximise the joined database and social media reach?
- Who might be interested in publicity?
- How will customers on both sides benefit?
- What’s the best way to communicate these benefits?
5. What makes you different?
A unique selling proposition or point of difference is always an important consideration, even more so if you sit in a highly competitive market. What does your business offer that sets it apart, and what other business could complement this offering? A great example of this kind of thinking is when Uber teamed up with Spotify so that users of both services could access their personal playlists while they ride. When brainstorming these kinds of partnerships, remember to keep the emphasis on the customer experience.
Is your business considering co-branding, or about to go through an acquisition or transformation? Get in touch with the experienced team at Make it Happen today for the expert guidance you need to get the best results.