What Are the Benefits of Co-Branding?

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On this subject, here is an article about CO-BRANDING: Remember when Taco Bell joined hands, or shall we say ingredients, with the famous tortilla chips brand Doritos? They ended up creating the groundbreaking Doritos Locos Tacos. The collaboration resulted in a distinct type of tacos with the Taco Bell stuffing covered in a Doritos shell. It was an instant hit in the food industry. And until now, it is a constant in the Taco Bell menu.

Now the sole purpose of putting forward this example was to explain how co-branding works. And how it can instantly make brands famous. It is also a great way to change the way customers look at your already established brand. Co-branding is the concept by which two or more brands create a new product or service to generate better outcomes for all parties. It uses the idea of synergy, whereby two brands come together to create a better marketing outcome than they would have done individually. The marketing world has witnessed some remarkable co-branding campaigns in the past. And to date, famous brands still make the most of co-branding by pitching some exclusive products in the market.

The co-branding technique exists in the marketing world in various forms. Some of the prominent ones include:

  • Promotional Co-Branding: It is when brands collaborate with certain people or famous events to promote the product. An example is when certain brands sponsor a celebrity award show.
  • Alliance Co-Branding: Involves two or more similar brands joining to provide a better product or service. It is commonly the same product; however, the combined presence offers a greater variety to the audience.
  • Product to Service Co-Branding: It happens when a particular brand provides discounted services on a condition. The prerequisite would involve the consumers to exhibit loyalty to the collaborating brand.
  • Ingredient Co-branding: This collaboration happens when one brand offers its ingredients to another brand’s products. A classic example is the Doritos-Taco Bell co-branding initiative.
  • Supplier to Retailer Co-Branding: Like product and service co-branding, a brand supplies its products to a retailer to incorporate in their services.

Your outreach strategists should focus on choosing the co-branding tactic, which suits your business structure the most. All of the above co-branding tactics can play a significant role in effective outreach marketing by outreach strategists in your company. Therefore, the aim is to pick the one that has the potential to generate the highest benefits.

Having discussed what co-branding is, let us see how co-branding gives more value to your business. Here we list down the critical benefits co-branding offers to companies that incorporate it in their marketing campaign:

  • Co-Branding Means Higher Campaign Budgets:

Marketing budgets in a business are usually massive. Promotional costs are one of the main expenses of a company. Brands invest hefty amounts in marketing their products and services since advertisements and promotions significantly impact consumer demand and, eventually, sales. Co-branding helps pool in the financial resources of two or more brands. Since collaborating brands are usually well-established businesses, this means the marketing budget significantly doubles. It increases the overall campaign budget, which improves the chances of creating a more high-quality and effective branding layout.

  • Customers Put More Trust On A Co-Branded Product:

Two renowned brands coming together to create a product is a vouching factor for quality. Customers will put more trust in the designed product since two or more authoritative brands back it. Collaborations mean more resources, more expertise, more skills, and consequently, more quality. Consumers know this fact and thus, will be more inclined towards purchasing such a product. It also creates curiosity, which will entice the customers to try it at least.

  • You Benefit From The Customer Base Of The Other Brand:

Co-branding is a great way to increase your customer base. Alliancing with another brand will help you step into a different market and introduce your products to newer consumers. As a result, your sales figures may increase. And if the campaign is a hit, you can expect revenues to increase manifold. Moreover, certain brands may have great potential to grow but may find it difficult to penetrate the market. Co-branding allows them to enter a market by gaining trust on the shoulders of an already recognized brand.

  • It Divides The Risks Between The Collaborating Parties:

Like we discussed earlier, marketing campaigns often include hefty outlays. The budgets are colossal, and so are the promotional costs. Unfortunately, if the marketing initiative does not produce the desired outcome, it is a massive loss. There are significant risks involved, so brands create promotional campaigns after much analysis and deliberation. However, co-branding helps spread the risk between the alliancing parties. Even if your drive is not a success, it is not only you who bears the loss.

  • Co-Branding Can Generate Royalty Income:

When successful brands lend their names to other businesses in the market, they charge a royalty income. Suppose a brand is well-known and helps you increase your brand recognition by collaborating with you. In that case, they will most probably charge you a royalty income. Brands are not just names. They have immense goodwill and reputation attached to them, which results from years of hard work and production of quality products. If you own a well-recognized product or service, the brand name can be a source of royalty income for you for years.

  • It Can Reap The Benefits Of Combined Resources:

Different businesses would mean having diverse skills, expertise, and resources. Each brand would have its unique strengths, which, when combined, can produce excellent results. For example, if the technology is not your businesses’ forte, then maybe alliancing with another brand will allow you to take benefit from their technological resources. Moreover, having two teams of highly skilled marketing experts will mean producing top-notch marketing content. They say, ‘Two heads are better than one.’ And this, by far, is one of the most practical benefits of co-branding.


Marketing is a vast field and includes many tactics for advertising and promotion. One of these techniques is the concept of co-branding. It allows brands to come together, bring in their skills and resources, and produce something far more significant in value and utility for their consumers. There are numerous examples of co-branding in the present marketing scenario. The most common has to be several high-end makeup brands collaborating with well-known makeup artists in the fashion industry. Co-branding is an effective way to promote your products alongside providing the business with some significant other benefits such as those mentioned above. All your marketing team needs is a unique idea for a collaboration, and you will indeed create an effective co-branding campaign.


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