One of the main concerns shared by retailers is the need to be top of mind and increase engagement with customers. A co-branding strategy helps to increase the marketing reach of the retailers who are partnering on a branding strategy. If you are not sure “What is co-branding?” is all about, we have you covered!
In this article, we will discuss what co-branding means for retailers, share some co-branding examples, and spotlight the co-branding benefits that go beyond simply expanding the marketing reach of a store.
What is Co-Branding for Retailers?
The idea of co-branding retailers is as follows:
A co-branding strategy is a marketing strategy where a retailer teams-up with one (or more) complimentary retailers or other types of businesses. The goal of the co-branding partnership is for each retailer to take advantage of the brand equity of the other company as well as the marketing strength of the combination of the brands. In other words, “What is co-branding?” means forming a branding partnership that increases the marketing reach for all of the involved parties through the additional exposure to a larger audience.
Co-branding Benefits for Retailers
The number of co-branding benefits for retailers are numerous and each benefit works to generate the increased results the co-branding participants want to achieve. Here are a number of the common benefits (in no particular order):
- Greater brand visibility as the partnership will introduce each retailer to another audience.
- Strengthened brand visibility thanks to the additional exposure to a new audience. The partnership increases the number of people viewing the branding of each retailer.
- Higher sales as the branding efforts get the attention of consumers and convert them from prospects to customers.
- Better customer retention as the customers gained from the marketing strategy, as well as those who were already customers, will develop brand loyalty thanks to their happiness with their purchase.
Co-branding Examples for Retailers
The available methods of co-branding are almost limitless for a retailer. In order to help retailers start this marketing strategy, here are some creative co-branding ideas for retailers to borrow/steal for their own use.
Retail Co-Branding Example 1
Two companies can partner to execute a contest where they both participate in promoting the contest and awarding prizes. The two companies are usually complimentary businesses that generate efficient and effective exposure. The financial expenses are lower for both companies as they share the cost of contest prizes and marketing materials.
Retail Co-Branding Example 2
The two brands can create a friendly rivalry that also promotes both brands. The two companies could be competing brands or two companies that tend to have competing philosophies in their market or industry. The final results can highlight the difference between the two brands while also showing they are willing to work with a rival for a common cause.
Retail Co-Branding Example 3
Each brand makes the commitment to provide a discount or promotion for the other brand. In other words, Brand A creates and promotes a promo or discount for Brand B while Brand B creates and showcases a discount or promo for Brand A. This type of co-branding effort is normally straightforward and easy to execute.
If you are ready to expand your marketing efforts by co-branding with another company, chat with our branding experts about how to get started.
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