Back in high school, what would you do when you need help on a particular subject? Usually, you would ask for help from somebody that does well on that subject. And in return, you would teach the person that helped you with the subject you didn’t do well on. It’s better for you to help each other instead of working hard by yourself on a subject you might don’t do well on.
The same thing goes with co-branding. So, when a brand needs help on a particular marketing strategy, they would look for a brand to work together with because accomplishing the marketing strategy alone is impossible for the other brand.
A perfect example for this case is McDonald’s and Oreo co-branding on McFlurry. Oreo is a brand that sells cookie. But McDonald’s wanted to sell a cookie flavoured McFlurry. To solve that problem, McDonald’s decided to have a partnership with Oreo.
Here are several benefits of co-branding that you should consider:
1. Bigger market and audience to reach.
When brands ‘work together’, there’s a higher chance for those brands to gain more audience, especially when the products of the brands are the total opposite. Using the previous example of Oreo McFlurry, when the two products are combined, both cookies and ice cream fans can enjoy the combination of cookies and ice cream. Those who haven’t try will buy Oreo sometime in the future after knowing that Oreo is right from the McFlurry, vice versa.
Related: Use These 3 Marketing Tips to make Your ‘Boring’ Product more Interesting!
2. More brands, more budget.
The Bigger budget means bigger things the brands can do about the strategy, whether it is product development, marketing strategy, or anything that relates to expenditures can be solved quickly when two brands or more became partners. The costs will be split evenly or according to previous agreements, which is a good deal for both brands.
3. More credibility and trust towards the brands.
If somebody previously doubted an existence of a brand because it has never been heard before or even worse. Or because they’re concerned about the quality the brand provides, by co-branding, a brand can get rid of the worried feelings from people because there’s a brand that wants to collaborate with it, so the trust feelings will eventually grow.
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