Co-branding as a market strategy
Co-branding is a market strategy that makes immense sense - Two or more famous brands, usually with unconnected production or marketing activities. The idea is to create a burgeoning atmosphere that enables growth of all the parties concerned. You can also call it brand partnership. A marketing synergy thus created can go a long way in furthering the goals of the companies.
The target, be it general public or a special group of people depending upon the product is usually subject to bombardment of one particular product rather than a brand as a whole. It may also involve identifying some other entity instead of the actual producer or service provider. All the parties can use anything connected with the product like brand identifiers or logos in order to promote the product. Two premium brands joining hands has certain respectability attached to it and it goes some way in convincing discerning customers to decide upon buying the product.
How has this strategy come about? In the 1990s, there was a flurry of merger and acquisitions involving many different companies. Car companies, oil companies and many others found A&M to be advantageous to their business. They also went on acquisition sprees and bought up companies that had nothing to do with their current operations. Soon it was realized that taking over a whole operation and running it was a difficult proposition. It was a bar better option to go in for marketing co-operation. This brand partnering helped gain more sales as well as recognition, without the problems related to merger and acquisition.
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It may also involve identifying some other entity instead of the actual producer or service provider. All the parties can use anything connected with the product like brand identifiers or logos in order to promote the product. Two premium brands joining hands has certain respectability attached to it and it goes some way in convincing discerning customers to decide upon buying the product.
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