Co-branding- 3 important things to remember for brands to co-exist
I: Owner of fruit cake company in x area
YOU: Owner of a packers and movers company in Y area
What if we co-brand our services together to increase the value of our brands, expose our businesses to an entirely different market or territory, strengthen our brands’ awareness and lastly create some additional profit.
Simply amazing, isn’t it?
Think of a brand like a person living with purpose, adding value to other people’s lives and operating with a set of guiding principles. Sometimes, like people, brand needs positivity in its life. Can any other brand partner bring the positive synergy that the brand seeks?
Co-branding is all about embracing a new collaborative venture designed to cater the interests of two or more parties in a considered strategic fashion.
But, it is easier said than done! Three major things should be taken care of:
1. EQUAL VALUE FOR BOTH
Profit value should be equal for it. The moment a company tries to fashion a better deal out of the arrangement than its partner’s deal, the whole deal is long gone. Rivalry should not exist when you have to do a business together. You will certainly not like it if my company is known throughout India and yours has a limited reach.
2. SAME OBJECTIVES
Opposites never attract in this scenario. The idea of one company which sells cigarettes merging with another company which sells anti-smoking chewing gum is not compatible even on financial papers. If two companies have no values in common or contradict each other brands’ images or are too different, the partnership will be over before it’s started.
3. UNDERSTANDABLE RELATIONSHIP
Ultimately, everything is in the hands of the consumer. If you cannot explain the value of relationship in two lines, just forget it. Why and how should be clear enough for brands as well as consumers.
Co-branding is like a marriage between two brands which are metaphorically in love and needless to say, a company will have substantial savings in its bank account if it marries the right brand the first time.
P.S: If the agreement turns sour, break-apart of the deal will be similar to an ugly divorce.