Co Branding

Markit Club LIBA

Co-Branding

Key Words: Branding potential, leveraging, bundling, sharing of marketing costs

1.1 Meaning • Co-branding, sometimes known, as cross-platform marketing is a strategic partnership between professionals or organizations that recognize the value of leveraging each other’s reputation to amplify awareness about a product, service, event, or cause. Typical co-branding includes combining the strongest elements of a product with the best complementary brands to offer new goods and services. Also a common practice is the utilization of two or more brands to name a new product.

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1.1.1 Example: • Nike and Apple brought music and exercise together when they developed the “Nike + iPod” Sports Kit, a wireless system that allows users listening to music as well as to see how far and fast they have run, and the amount of calories they have burnt. To achieve this, Apple computers Inc. provided a tiny i-Pod, and there was a wireless system that received data from a sensor in the insole of the shoes. All in all, it looks a brilliant idea and a win-win situation for both companies.

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1.2 Benefits of co branding: 1. Opportunity to reach more of the customers who are currently consumers of something else. 2. Sharing of marketing costs 3. More benefits to present customers, enhance brand loyalty, and widen customer base. 4. Talent, expertise, and creativity can be shared on the basis of the principle that success of one will bring success of the other. 5. Co-branding can be an effective strategy to survive down times and even grow. 1.3 Types of co branding: 1.3.1 Ingredient co-branding: It implies using a renowned brand as an element in the production of another renowned brand.

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Markit Club LIBA

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The ingredient should either be a major brand or should be protected by a patent. Ingredient co-branding leads to better quality products, superior promotions, more access to distribution channel and greater...