Each and every company wants its brand to be known by the greatest number of people, especially those who make up its target audience. Thinking about innovative strategies is essential to achieve this goal. An alternative that can be explored and offer good results is co-branding.
The strategy is based on a one-off partnership between different brands. Companies add value to each other and the result obtained by both, in this specific action, is reciprocal. There are several ways to apply co-branding and make your business stand out in the market.
Do you want to understand everything about this strategy and leverage its results? Check it out below.
Co-branding refers to the joining of two or more brands to create a product or service. Thus, they cooperate with each other and bet on an idea that can add value to all companies involved in the process.
It is true that the intention is that the product offered in partnership will bring good profits. However, the strategy goes further. The entrepreneur in question wants to be known by a greater number of people, who will be able to consume other things from the company in the future.
It is noteworthy that the partnership made has a limited time and is usually only for one project. Therefore, it is important to invest all the creative and strategic capacity in that product. After the launch and completion of sales, companies no longer have common responsibilities.
In any industry, there are countless competitors and you need to differentiate yourself from them. For this, it is common to have to invest in marketing and study strategies to reach as many people as possible.
With co-branding, your company will be able to sell and make a profit. But, in addition, it will enter a market that does not yet know it, attracting the right audience, organically and without having a high marketing cost.
It’s much easier to gain someone’s trust when you’re introduced through a mutual friend. Likewise, it happens with companies. People tend to trust and create greater proximity with brands that have some alliance with others that already consume and know the quality.
Now imagine your business, totally unknown, launching a new product. It is certain that the consumer will have greater resistance to purchase. Co-branding may come at a cost in some cases, but without a doubt, it has one of the best returns.
The products resulting from a partnership are different from those usually found in the market. Companies are always looking for something innovative and that catches the public’s attention.
So, if the strategy is positive, the brand will differentiate itself, stand out and show its potential within the market niche. It is a unique opportunity to show that your products are the best for your persona.
In co-branding, your company’s brand is exposed and linked to that launch, as well as your own products. Therefore, it is necessary that the projects involved are aligned from the beginning of the project, so that they can generate value for both. We separate points that are essential when creating a co-branding. Follow up.
Study your potential partner carefully so that it is not a negative strategy. See if you’ve been involved in controversies that your company doesn’t want to be tied to. Also, analyze if the audience you have will identify you with his brand or if it will be bad for your image.
Assess the relevance of this new product
Just like any other product or service, people need to see the relevance of what is being offered and feel the desire to consume it. It’s no use uniting brands that have everything to do with, that manage to connect well, but fail to explore the market niche correctly.
After concluding that a certain brand is really the ideal one to add value to your business, start planning. It must be done carefully, as there may be a conflict of interest during the process. In this step, we recommend using the 5W2H tool, which consists of answering 7 basic questions:
You must have come this far with a question: are co-branding and co-marketing the same thing? The terms and goals are very similar, but there are differences in practice. Co-branding is focused on creating something that has the identity of more than one company or brand and will be marketed by both, in partnership, as an e-book.
Co-marketing is more related to advertising pieces. One company adds value to another, but without having to create a new product. This is the case, for example, of the campaign carried out by GOL and Localiza Hertz.
Organizations have the same audience and, often, those who get off the plane need to rent a car to get around. So, the car rental company started to give a discount to those who flew with that airline.
Co-branding is a great ally for brands that are starting to position themselves in the market. It provides a collaborative strategy that can be very effective as it allows you to think outside the box and bring together ideas from more than one team.