Co-Branding: How Could It Benefit Your Brand?


Hershey’s has done it. So has Coke. And Nike.
All of them have been met with considerable success. So why shouldn’t you do it too? While it may not guarantee a path towards a multimillion dollar business, co-branding can benefit your business and your brand in numerous ways. Because where building and sustaining brand equity is concerned, two is always better than one.

What Exactly is Co-Branding?

Co-branding is a marketing strategy that enables two or more brands to enter into a marketing partnership. Under this partnership, goods or services are marketed to consumers via methods that prominently feature both brands. For example, a variant of Betty Crocker’s Brownie mix features Hershey’s chocolate.

How Can Your Brand Benefit from Co-Branding?

• Shared expertise while expanding into new markets:

Expanding into new markets can be a daunting task for many businesses because one wrong move can tarnish the brand image forever. When you co-brand, chances are that your branding partner has access to certain markets you have yet to explore. In this way, co-branding can ensure that you can draw upon your branding partner’s expertise when introducing your products into previously unexplored markets, consequently minimizing the risks involved.

• Shared Costs leading to improved marketing tactics

When companies choose to co-brand their products, they often prefer to divide the marketing costs. This way, each company ends up with only a partial share of the overall cost, leading to external economies of scale. Once this is achieved, companies can opt for relatively more expensive marketing techniques and tactics. Needless to say, better marketing techniques ultimately lead to stronger brand equity, leading to greater consumer confidence in your brand

• Harness goodwill associated with the other brand

This is undoubtedly one of the biggest advantages of co-branding. Over time, consumers tend to build certain positive (or negative) associations with a certain brand. These associations are transferred on to both the product and any other things linked with the brand. Hence, if you obtain the opportunity to partner up with a brand that has strong brand equity, co-branding would allow your brand to benefit immensely. This is because connecting your brand with the other brand will cause both your product and your brand to benefit from the positive associations linked with the latter, and vice versa.

Despite the numerous benefits of co-branding, it is important to know that there can be some pitfalls as well, especially if you choose to partner up with a brand of questionable reputation. Hence, in order to reap the benefits of co-branding you must carefully evaluate all possibilities before entering into a formal agreement with another brand. However, if done successfully, co-branding will benefit your company and your brand for years to come.


Tim is a regular marketing blogger specialising in all things related to brand. From the use promotional bags to create brand awareness to effective social media activities and email marketing, Tim has a large experience in branding channel and love sharing it online.

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