Home Business The Essence of Co Branding

The Essence of Co Branding

447
0

Today companies are forming alliance, be it  formal or informal to tackle with their competitor and are pouring lakhs of rupees in branding. In this context, co-branding is a well sought strategy. Co branding is  when two (sometimes more) brands come together for range of marketing activity. In the scenario of Nepal ‘co-branding’ is a new term and is being used by few companies. The possibilities for co branding is endless which Nepali companies are yet to discover.

Companies do co-branding because there is a way to increase the scope of increasing influence of their brand in the market with low cost. This also strengthens their brand image by working with another trusted brand. It is a means for shared value creation as well. Co-branding is being used by many brands ranging from airlines, media, food/drinks and so on.

Today we can see payment gateways in Nepal partnering with different retail companies and coming up with tons of cashback and discount offers. For example, in this festive season there are dozens of offers in Sastodeal if you pay from Khalti. This not only increases spending capacity of customers but also generates awareness of digital payment thereby, promoting each others brand. We can see esewa Payment options at hundreds of stores all over Nepal. Since, a esewa is branded in their stores as well as retailers get branding on the portal of Esewa. This way both parties get benefited. This type of co branding is ingredient branding. We can see logo of intel in the dell laptops. Similarly Visa logo on debit cards of bank.

In co branding, the value of one brand will be greatly diminished in the absence of another. The essence of co branding is that both brands establish credibility and extends market reach in nearly half of the budget. There are other types of co branding as well. We can see khalti as ticketing partner for many events . Companies sponsor events for their own branding. They form joint ventures and alliances for branding.

The main motive of co branding is to jointly create something which adds value to both companies which is not possible alone. Companies not only get benefits of combined resources, creativity and customers but risk is also shared.  The trust of customers of both brands reaches to a new height. It helps to generate new revenue streams along with customer retention.

Choosing a co branding partner is a wise decision. Co branding partner should have similar values . Both partners should help to boost the productivity by dragging each other. There should always be a win win situation for both brands. If the mission, vision and market of companies does not match, it can have an adverse effect on both companies.

By : Ajay Pandey