Co – Branding is simply the business way of trading services. Companies creating new, common brands are splitting the costs of such actions. Establishing such cooperation may bring a lot of benefits to the companies. Starting with the easier entry into the new market – brands attract new customers, by refreshing the brand to present a positive image, improved reputation, ending in creation of a completely new value.
The most crucial rule of establishing such cooperation is transparency of agreement conditions and understanding on both sides.
In terms of co-branding there are few possible types of cooperation:
- reach-awareness co-branding – the aim is to raise awareness of one brand in the target audience of the other
- value endorsement co-branding – the aim is to enhance the brand image of both brands
- complementacy competence co-branding – both sides cooperate in order to create a completely new brand or value, the created new product or service was not available previously in any of those companies
- ingredient co-branding – it involves strengthening one brand by showing that it has an excellent ingredient from another brand
The whole idea is that the success of one brand will bring success to its partner brand. But for a partnership to truly work, it has to be a win-win for all players in the game.
GoPro & Red Bull: “Stratos”
GoPro – the seller of portable cameras and RedBull – most popular energy drink brand in the world, have one main feature in common. They both promote a specific lifestyle, which is full of adventure and quite extreme.
“Stratos” was a stunt in which Felix Baumgartner jumped from a space pod more than 24 miles above Earth’s surface with a GoPro strapped to his body.
Uber & Spotify: Your ride. Your music.
Spotify, a commercial music streaming service, and Uber – the cab booking app created a collaborated concept that allows users of Spotify to choose the music that will be played on the car’s speakers when they request a ride with Uber. The most important feature in this brand collaboration is added value for the customer. Spotify is bringing useful technology to make Uber journeys more enjoyable for the customers.
Coca-Cola light and luxury fashion brands
Coca-Cola light in its branding history was already few times linked with the world of high fashion. In the past, many famous designers have created special editions for Coca-Cola light cans and bottles as a tribute to fashion. In recent years the creative direction of Coca-Cola light was covered by legends such as Karl Lagerferld, Jean Paul Gaultier and Marc Jacobs. That might be an example of reach-awareness co-branding, by giving the Coca-Cola light a luxurious vibe and a fancy packaging to attract customers of high-fashion industry.
Reebok and CrossFit
After Reebok once dominated the fitness and aerobics wave in the 1980s with groundbreaking products and marketing, 3 decades later the company signed a 10 year partnership with CrossFit conditioning program in 2010. Now, 6 years later, Reebok is back on track to become THE fitness brand with the goal to empower its consumers to be the fittest.
Reebok and CrossFit co-branding strategy can also be viewed as a complementary co-alliance, since both brands are in the fitness industry.
Aspirational CrossFitters are people who may not participate in the sport but want to associate with it. People who watch the games/sport are now exposed to the Reebok brand since CrossFitters wear it, and these consumers may want to buy the product due to their positive affiliation with CrossFit.
At the same time, CrossFit has expanded into Reebok markets, specifically their CrossFit apparel and products sold online and at Reebok locations.