Apart from creating additional appeal to the consumers, the objective of co-branding is increasing revenue. The ultimate goal of co-branding is one plus one = more than two. If the co-branding is done using innovative ideas and effective strategies with the right partner, it can prove to be very beneficial for business growth.
Benefits of Co-branding
Co-branding helps to −
● Make the product or service under the brands resistant to imitation by local or private brands.
● Combine various perceptions about multiple brands.
● Increase the credibility of the product or service in the market.
● Increase revenue of both businesses, if done effectively
● Save costs of the company for launching a new brand, advertising, and promoting the brand through shared resources.
● Bring benefits from all brands and helps all brands participating in co-branding to prosper.
For example, Coca Cola, the soft drinks giant has paired itself with McDonalds and made it sure it is associated with the brand that is consumed by millions of consumers around the world. Just by being together, both giants in restaurants and beverage industry respectively are earning billions of dollars revenue every year.