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.

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