The Benefits of Co-branding
Let’s say you run a successful organization, and you’re asked to co-brand your business with another business. There are several good reasons for doing this, and a few things to consider to ensure you do it right.
Co-branding makes sense when the two brands can promote a unified message to achieve the following goals:
- Responding to marketplace changes and customer needs.
- Better leveraging each organization’s core competencies.
- Creating a new product or service to increase revenues for both organizations.
Co-branding can help you remain relevant and extend your presence in your operating environment. It can also help you meet the ever-changing demands of your customers. By associating with an appropriate brand, you can accentuate your strengths and mitigate perceived weaknesses. New customers will see your organization in a new light, for new applications. And that means new markets and new sales opportunities.
As you consider these marketing incentives for co-branding, be sure to conduct due diligence before you move forward. Ask yourself if association with the other organization’s brand will complement or even elevate your brand. Your customers and competitors will perceive co-branding as an endorsement of your brand by association with another organization. How will they react? What actions will they take?
Co-branding is more than simply placing two logos next to each other in an ad or on letterhead. If you decide to co-brand your organization with another, develop an easy-to-understand statement that succinctly identifies the rationale and benefits of co-branding for your internal and external customers. Spread this message widely through internal communications, public relations and social media, as well as dedicated paid advertising. Get opinion leaders on board early and communicate clearly and consistently to avoid confusing customers. Designate an appropriate level of investment in marketing so that your co-brand message sticks with your existing and new target audiences.
When you treat your co-branding opportunity like the launch of a new business line and thoughtfully position, plan and promote your co-brand, you can increase your share of new and emerging markets. If you need help positioning, messaging and promoting your co-brand, find an agency or consultant with the expertise and experience to successfully launch this important undertaking.