Co-branding: examples of brand collaborations that the public loves

In a saturated market like the present, there are times when we need to practise that old adage of "together we are stronger” if we want to stand out. Hence, corporate co-branding initiatives are becoming increasingly common, offering a form of partnership between companies to create joint products or services. 

In this regard, 71% of consumers admit that they enjoy co-branding initiatives, according to the study 4 Essentials for Co-Branding Success (2021), by Visual Objects. Who can forget the legendary Nike Air Jordan? And who doesn't like Darth Vader or Luke Skywalker in Lego format? 

However, like any sales and marketing strategy, its effectiveness will depend on proper planning and execution. Discover the key features of co-branding, examples, and learn to harness the power of collaboration to improve business results. 

What is co-branding?

Co-branding refers to a marketing strategy in which two companies decide to collaborate to create a new product or service that allows them to strengthen their positioning and improve sales. In other words, it is a temporary strategic alliance that results in tangible new products. For example, two brands might exploit this joint venture to launch a limited-edition product that combines the attributes of both. 

The concept originated back in the 50s, when the car manufacturer Renault joined forces with luxury jeweller Van Cleef and Arpels, to offer consumers a new car model (the Renault 1960), whose hallmark was an exclusive dashboard and steering wheel inlaid with precious stones. 

Since then, innumerable different examples of co-branding campaigns have been signed off and developed. So, we might find complementary examples of co-branding campaigns where brands join forces to create an innovative product only made possible by said collaboration. This is exactly what Samsung, Qualcomm and Google are aiming for with their partnership to build an extended reality ecosystem. 

Also common is what is known as ingredient co-branding, which sees the creation of a new product or service that wouldn't exist without the fusion of the two brands. The result is seen as being better, enhanced, and the goal is for each company to capture new customers from the target audience of the other. For example, Lays crisps with a Heinz ketchup flavour or Adidas trainers with a Gore Tex sole. 

Another possibility is symbolic co-branding, where one of the brands has a greater role. The other is limited to providing ‘support’ as added value, making itself known while helping attract attention to the main company. This would be the case, for example, with Samsonite deciding to create limited edition suitcases with Disney designs, or the AMC Gremlin Levi's, a special edition of AMC's classic Gremlin vehicle, but with upholstery designed by the well-known denim brand. 

What are the pros and cons of co-branding?

With these initiatives, the main objective companies achieve is capturing new target audiences, securing greater visibility in new niches and boosting sales. However, it also allows brands to develop products or services which they wouldn't be able to do independently, while also differentiating themselves on the market, thus increasing competitiveness. 

Likewise, co-branding means the required investment in innovation can be shared, along with minimising any risk it poses. And let's not forget the boost for brand image that such alliances generate, especially in the case of entrepreneurs or a startup, which can deploy co-branding as a springboard to getting better known and gaining a good reputation. 

However, this strategy also has its risks. The case may be that the new product or service born from such a union just isn't of interest to the public.

Meanwhile, it's also possible that only one of the brands reaps the benefits of the collaboration, while the other gets overlooked. For example, imagine a young artist who creates a design for a T-shirt brand, but the public, despite loving the product, has no idea who created it. Or imagine launching an alliance with another company, which right at that point, becomes embroiled in a scandal. That would impact negatively on the co-branding partner and damage their reputation too. 

How does co-branding work?

To avoid the potential pitfalls of co-branding, when planning a campaign of this type, you must take several factors into account. Specifically, according to Andrea Taulero de Manuel in the piece Co-branding: How to create value, a case study on the fashion industry, the co-branding strategy must fulfil three essential requirements: 

• The brands should be aligned. This means that their company values must be a good fit for each other. Otherwise, the public will see the collaboration as fake and won't get behind it. Can you imagine a Greenpeace activist buying a face cream from a firm that uses animals in its experiments? 
• The contributions of each must be complementary. For co-branding to be a success, it is not only necessary to have a similar corporate philosophy - the attributes that each brand brings must add up too. This doesn't mean that the value added by each company needs to be equal; in fact, opposing contributions often work. The key is that they complement one another. 
• The result needs to be of interest to the public. If the new service or product created from co-branding doesn't appeal to the consumer, the co-branding strategy will fail. Therefore, when considering a collab of this type, think carefully about what benefits it offers to the target audience, i.e., what need you are going to address with the joint venture. 

Co-branding examples

It's always a good idea to look to the successful co-branding examples of other companies for inspiration. Some role models in this field are Nike and Apple, which have already conducted several co-branding campaigns together. One of these gave rise to Nike+iPod, a small device designed by the tech company that is attached to trainers to record activity. A striking complementary co-branding example.

The Oreo brand is also a master of co-branding, especially when it comes to ingredients. Its biscuits can be found in partnership with a whole host of products: Milka chocolate with Oreo pieces, cookie-flavour Cornetto ice creams, Danone yoghurt with crunchy biscuit bites, etc. They have even collaborated with Havaianas to create the Flip Flop Oreo Top. 

And in the case of symbolic co-branding, a fitting success story is the "affair" conducted between BMW and Louis Vuitton. The luxury textile brand designed a luggage set specially for the BMW i8. In this concept, the luggage not only matched the vehicle's aesthetics, its measurements were calculated to fit perfectly into the boot as well! 

As you can see with these co-branding examples, the possibilities are endless, so once you understand the theory, it's time to sit down and think up innovative campaigns to get started with. 

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