Co-Branding is already projected to be a huge marketing tool in 2019 and businesses of all sizes are taking notice. Through brand partnerships, two or more brands strategically merge to enhance their marketing benefits mutually while working together to craft unique marketing strategies. With co-branding, businesses are able to reach new audiences, increase lead generation and stay on pace with modern markets. In this article, we will look at some of the unique benefits associated with co-branding and provide some ways to help your business get started.
Before getting started, it’s important for businesses to research potential brands they would like to work with and ensure they compliment your existing or upcoming products and services. When implemented correctly, the inherent benefits will instantly be unlocked. For instance, if you are a cookie company, you may start looking for ice cream parlors that may be interested in providing your products as an added, branded product on their menu. Let’s take a look at some of the benefits that co-branding can provide businesses that choose to invest in it.
Improved Reach
One of the most obvious benefits of any co-branding strategy is the ability to expose your products or services to new audiences that may not know they are available. Not only does this give you access to potential leads, but it also allows you to expand into markets that you may not currently be marketing in. This makes it incredibly easy to pivot your future strategies or become more prominent in markets you may not have been in before that compliment your products and services.
As just one example, a home inspector may partner with a pest control provider to include termite inspection services for anyone looking to purchase a new home. While you both retain exclusive rights to your respective business, you are enhancing your product offering to the general public. This means that customers that need both can get a bundled package through you that they may not have known existed without co-branding.
Strengthened Credibility
If you are looking for a way to establish credibility in your industry, co-branding provides smaller businesses the opportunity to team up with other respected businesses. By working together, you have the ability to highlight the benefits of both companies in a positive light and continue to grow together. This helps provide more market value for each respective brand as long as the correct partner business has been chosen.
For this reason, it is important to ensure the business you are partnering with has the same level of customer service and respect that you give your own customers and clients. Don’t be afraid to research the business thoroughly before solidifying a partnership. In many cases, scouring over their online reviews is a good starting place to determine how credible the business may be.
Boosted Marketing Budgets
Because co-branding involves marketing services or brands together, it’s an excellent way to effectively double your marketing budget. Each business is responsible for half, or a determined amount, of the marketing budget. This budget is then used to create advertising and marketing materials that highlight both businesses in a positive light.
With co-branding, you also have the opportunity to come up with creative ideas together and increase your return revenue. However, it is important to remain diligent to ensure that your businesses are gaining fair exposure through the marketing strategy. Otherwise, you would be better served just marketing your business alone to make the most impact and effectively use your marketing budget.