A Comprehensive Co Branding Guide For Your Business

 3 Jan, 2023


Search no beyond co-branding if you want to increase brand awareness while raising sales and expanding your audience. After all, co branding is a fantastic method to expand your company's reach.

By strategically partnering with other businesses, you may increase the range of products and services you offer your customers and unlock a potent new channel for business expansion, branding strategy,  and brand recognition. 

You may acquire exposure to that loyalty and attract new clients who might not have otherwise heard of your brand through a strategic relationship with a co branding company that already has a devoted customer base.

Co-branding has numerous advantages, but to make it work for your company, you must understand how it operates. 

In this post, we define co-branding, explain how it operates, and discuss approaches to take into account before entering a co-branded collaboration. All you need to understand to launch a co-branded collaboration successfully.

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Understanding What Is Co Branding

Co-branding definition is usually referred to as brand collaboration, is a branding tactic in which two or more companies collaborate to develop or market a good or service. This does not merely entail adding the names of two brands to a good or service. 

In a co-branding collaboration, the assets, identities, and brand histories of each partner are combined to produce a new product or service, typically with a new logo, brand colors, etc.

What is co-branding entails the sharing of assets, know-how, technology, and clientele so that each partner can capitalize on the strengths of the other. Even while two companies with nothing in common can still form a brand alliance, it is typically better to have at least one shared value that unites the brands.

Understanding What Is Co Branding

What Are The Perks Of Co Branding For Your Firm?

Each partner in a well-thought-out and well-executed brand alliance stands to gain greatly. Each party can make use of their respective markets and audiences, and their skills or areas of expertise, through this kind of partnership.

Better Reach

You can boost your brand's exposure to your partner's current customer base by forming a branding alliance. Loyal clients of your co branding company are more likely to believe the endorsement of your service or product from their preferred branding services and consider buying than they might have in the past.

Additionally, you can utilize co branding to attract new clients outside of your current clientele who are curious to learn about your relationship by creating a buzz about your brand or both co branding companies.

Build Brand Credibility

The legitimacy and dependability of each brand are demonstrated to their particular audiences when they are strong co branding companies. 

As was already established, devoted clients are more likely to believe in your brand if another well-known brand endorses you than if they just happened to come across it. Additionally, connecting your brand with another's improves brand exposure and recognition.


Additionally, by collaborating with that other brand, you demonstrate to other companies that your brand is one they want to collaborate with, further enhancing your brand's reputation and increasing others' desire to trust it.

Reduced Costs And Risks

For any size brand, introducing a new product or service, venturing into a foreign market, or tackling an entirely new industry can be dangerous. You can cut down on the risk you'd take by going it alone by collaborating with a company that is already established in the marketplace you're seeking to enter.

Additionally, by forming a relationship with a brand already recognized in the industry you're aiming to penetrate for its associations, values, and ideals, you're deciding on a low-cost strategy for communicating to audiences the changes inside your brand. 

Since co branding campaigns can be expensive, collaborating with a brand that aligns with your goals will help you demonstrate the pivot to innovative offerings or services within your business.

Which Co Branding Strategy Is Appropriate For Your Business?

Local-National Co Branding

When local and national businesses work together to create a new product for the market, this is the case. This co branding strategy aims to increase the visibility of small enterprises and, conversely, to help major brands win over local consumers' hearts. 

This kind of cooperation is advantageous to both organizations, however, it can be challenging for small enterprises to secure one.

Contracts that Groupon has with small businesses are an excellent co branding example of local to national co branding strategy. 

Small businesses can increase their customer base by making their services available to Groupon users. In return, Groupon receives a portion of the revenue. Everybody benefits from the situation.

Ingredient Co Branding

Contrary to how it appears, ingredient co-branding refers to the collaboration of brands based on shared ingredients or components. Finding a shared characteristic across the brands, combining the brand personas, and marketing the new product as a solution to a market need are the key components of this co branding strategy.

Co-branding between Dell and Intel is a prime example of co branding. Dell makes laptops that require a quick processor, and Intel makes these processors specifically for laptops.


Multi Sponsor Co Branding

When two or more businesses collaborate to share technology, information, sales, and promotional events, this is known as multi-sponsor co-branding. Each of the interested businesses typically gains the chance to boost revenue, brand recognition, or reputation. Maybe one of the most well-known co branding ideas is this one.

The relationship between Citibank, American Airlines, and the Visa card is an example of cobranding, where one business gains from the other's technological advancements and marketing initiatives. 

You will automatically receive advantage points when you open a Citibank account for use with a visa card to make transactions.

Composite Co Branding

To develop a more effective marketing plan for their company, well-known and well-established businesses collaborate in this co branding strategy. Instead of attracting new clients, composite co-branding focuses on keeping the ones you already have.

An example of co branding is the Adidas and Kanye West cooperation. The development of the "Adidas Yeezy" collection of high-end footwear, apparel, and accessories demonstrates how two strong brands—Kanye West and Adidas—can work together to forge a successful co branding strategy.

Successful Example Of Co Branding Companies

BurgerKing And McDonald's

The co-branding project between LV and BMW may appear improbable, but the information above demonstrates why it makes sense. But this is the startling but incredibly true thing. Instead of competing for the same consumers, two burger joints work together.

2019 saw McDonald's and Burger King work together on a co-marketing campaign while holding hands. Burger King removed its best-selling item from the menu in Argentina and several nations as part of "A Day Without a Whopper."

They urged consumers to get a Big Mac instead. McDonald's reciprocated by giving $2 to charity, in this case, the Children With Cancer program, for each Big Mac order.

Red Bull And GoPro

Back in 2016, Red Bull and GoPro unveiled a multi-year worldwide relationship that will cover content creation, distribution, cross-promotion, and product development. Due to their common beliefs, both companies have positioned themselves as lifestyle brands, which made them the ideal match. 

To carry out this co-branding, GoPro provided athletes and adventurers with the equipment and funding necessary to record competitions, tricks, and sports on video, with Red Bull providing the event sponsorship. 

Both GoPro and Red Bull were able to grow their brands and their sales as a result. Co branding ideas can lead to a very effective promotional strategy that can enhance brand exposure, recognition, sales, and penetration into new markets. 

So how exactly can a company make sure co-branding is done right and results in a successful run?

The right guidance can help you to brand your business appropriately. 

Spotify And Starbucks

Starbucks customers in 2015 were able to listen to music from the streaming service Spotify. Starbucks has long incorporated music into its atmosphere, and its collaboration with Spotify has been highly accepted. 

This was done to persuade people to sign up for their loyalty program because people in this age group primarily consume information on their smartphones.


Starbucks then added Spotify's streaming platform to its "My Starbucks Rewards" mobile loyalty program. While Spotify has a client base of 60 million, this rewards program has more than 10 million users worldwide.

Target And UNICEF

Along with the benefits we've just mentioned, working with an NGO has additional benefits. Additionally, it demonstrates to the world that your company is ethical. Because of this, Target and UNICEF's co branding efforts are legendary.

The Kid Power initiative, which was developed by the two organizations, intends to provide every child in the nation access to the first "wearable-for-goodTM" Kid Power Band. The exercise equipment can assist in teaching children the importance of adopting a healthy lifestyle and keeping wellness as a way of life.

Final Thoughts

A co-branding is a fantastic approach to expanding your marketing initiatives while cutting costs and increasing awareness of your brand's activity. Even though it has some drawbacks, properly executing it will undoubtedly help your company in terms of extending your reach, your offering, and the credibility of your brand.

We at JanBask Digital Design comprehend your branding objectives and offer the top co-branding concepts and tactics.

Looking to Grow Your Brand Online?

  • Achieve Your Brand Vision
  • Drive Customer Engagement
  • Customize UI for Intuitive Digital Interactions


Q1. When Is The Right Time To Initiate For Co-Branding?

Ans. Co-branding may start when multiple or two parties willingly decide to collaborate on a niche product. A merger or purchase of a company may also result in the transfer of a brand associated with an established product or service provider to an even more recognizable company and brand.

Q2. How Can Co-Branding Benefit For Your Business?

Ans. Co-branding can help your business in a number of ways, including expanding your market and customer base, increasing customer loyalty and engagement, discovering new revenue streams (like with branded items), and delivering added value to customers.

Q3. Essential Initiatives For A Successful Co-Branding

Ans. Make a well-thought-out co-branding partnership plan by taking into account both your own and your potential partner's target markets, contrasting their brand personalities, evaluating their total reach and visibility, and so on. Additionally, expert Co-branding businesses are available to help you with this process.

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