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You are here: Home / Marketing and Business Development / Would Co-Branding Help Your Business?

Would Co-Branding Help Your Business?

December 29, 2015 by Sue Painter Leave a Comment

In a time when it’s hard to get a buyer’s attention, co-branding catches the eye. A month or so ago I came across a page in a what is co-branding?Pendleton catalog that offered Pendleton design on Ugg slip-on sneakers. I was sold.

  • I like Pendleton’s traditional Southwest designs
  • I wear Ugg shoes because they fit me well and are comfortable
  • Brand recognition was high for both brands
  • I’m a sucker for new shoes.

co-branding helps visibilityAbout a week later I had my new Uggs. And me being me, I sat down to dissect the co-branding efforts of Pendleton and Uggs that had led me to pull out my credit card.

  • The branding was primarily Ugg, which makes sense as the product is shoes.
  • The inside of the shoe was the only co-branded location.
  • If you are familiar with Pendleton, you’d recognize the design as theirs immediately. The design is on-brand.

As with any manufactured product, repeat customers come to expect certain things. When these things are not met, co-branding can hurt both brands.

  • The Uggs didn’t come with the full inside shearling, just a bit on the back heel.
  • Because of this, the insole of the shoe left an edge with stitching exposed on one side, which I can feel when I walk. And, because I bought a half-size larger thinking that I needed the room for the thick shearling, the shoe is slightly too large.

In the end, while I like the shoe’s design, I wish it fit better and had the famous Ugg shearling liner all through the insole. Yes, I can purchase that insole separately, but at the Pendleton/Ugg price, I don’t feel like I should have to! Overall, I think less of the Ugg brand than I did. Not good for Ugg. And I think a bit less of Pendleton, too, for accepting a design that didn’t include the shearling insole. It comes off as cheap.

Co-branding (sometimes also called strategic partnering) can help build your brand. It’s often used in industry and in the digital marketplace, too. If you’re considering a co-branding campaign, here are some pros and cons to think about.

Pros:

  • If your target market already knows, likes, and trusts both brands it’s a strong impulse to buy
  • Your advertising dollar goes farther
  • Your reach is larger, since it is the combined reach of both brands
  • Successful partnerships can freshen up both brands
  • Can be used in non-profit as well as for-profit industries

Cons:

  • If one partner doesn’t perform well, the second partner can lose trust with existing customers and disappoint new customers.
  • If you’re not a good match the co-branding comes off as unbelievable and strange.

You can two good articles about successful co-branding here:

  • The Secrets of Success Co-Brands (From Inc Magazine)
  • Back To Marketing Basics: Co-Branding Strategy In The Digital Age

If you want help succinctly identifying your brand (before you look to co-brand) here’s an article from my blog that will help you. I work with clients who need help with business and marketing strategies. You can find out more and get a free workbook on my home page.

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Filed Under: Marketing and Business Development Tagged With: Business Growth and Development, Joint Ventures, Small Business Strategy

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