How to Cobrand Your Business with Another Business
Cobrands capitalize on the benefits of two compatible brands that consumers can relate to. In consumers' minds, a cobrand can benefit both your business's brand and the brand with which you want to partner-up in a number of ways, as long as you avoid a few dangers.
The potential advantages of cobranding are as follows:
Both brands benefit from the opportunity to appeal to a greater customer base than either may be able to reach on its own.
Each brand stands to enhance its esteem by borrowing on the strength of the partner brand.
The brands share marketing costs, resulting in cost savings for each.
Each brand benefits from the perceived endorsement of the other.
Potential dangers of cobranding include:
Brand management is complicated by the need to integrate the separate operating systems and management approaches of each brand.
The cobranded offering can confuse consumers unless the link between the two brands is immediately obvious, sensible, and easy to understand.
One brand can be diminished in stature if consumers consider the partner brand to be an incompatible match.
Cobranding efforts cover a broad range. They may involve strategic alliances in which two brands unite to reach common goals or cobranded promotions in which two brands team up to achieve short-term sales objectives. Efforts may also involve cobranded product introductions in which two brands bring their production and marketing efforts together to achieve a greater market impact than either could achieve alone.