Branded together to spell success

Heading for office we often like to grab a coffee and while buying it, if we spot another brand selling cookies or sandwiches, our meal is complete! This is the advantage of co-branding. Here is what goes behind co-branding…
Catch about co-branding

Co-branding as we all know is the format where in two or more brands club together at one retail space. If used properly, this can be an effective way to cash in on the strong brand names. With putting co-branding in action you can provide your customer with 'best of all worlds' synergy. It may seem easy to club two related things together… but it requires extensive and exhaustive research. 

What goes into co-branding?
Co-branding can not be taken up just capriciously amongst two brands. A research needs to be carried out beforehand to see what kind of a response would they elicit when clubbed together. The first step for the co-branding exercise however, relates to identifying the perfect partner. You must ensure that there is a strategic fit between both the brands.  

Advantage spark
Financial benefits are one of the prime grounds for forming an alliance and that is definitely fulfilled in a co-branding activity. This means lower costs and increased profits. It helps to connect well with the customers and offer greater value to them. It also brings along the benefit of strengthening a brand position among competition while operational advantages. With having co-branding in place you can also maximise the unit sale price at point-of-purchase. 

The latest from the co-branding bandwagon is Café Coffee Day which has entered into an alliance with Sony’s PlayStation. Sony PSP will be setting up kiosk’s across Café Coffee Day’s outlets in Mumbai, Bengaluru and Delhi. Alok Gupta, Director, Café Coffee Day said, “We are delighted to partner with Sony PSP one of the world’s most popular gaming brand. A diverse variety of age groups visit the café on a daily basis. This will enable our youth patrons to have an enhanced in-café gaming experience and help us in bringing greater value to our customers and yet again establishing our brand’s promise that ‘a lot can happen over coffee’...” So here we can witness that when clubbed, brands prove to be advantageous to operate together. Co-branding offers your customers the sheer advantage of convenience which is valued by them most in today’s fast paced lives.  

Weaknesses
Though co-branding poses a lot of advantages for brands it also brings along with it certain disadvantages as well. If research is not carried out well and you partner with a poor performing brand than it may bring down your brand’s image as well. The combined strength of the co-branding brands should result in a higher brand strength and thus lower risk for the co-branded offer. Successful co-branding occurs when both brands add value to a partnership. 

Annotation
Co-branding for sure is an effective exercise; all you need to do is to adopt more methodical procedures for identifying 'brand' associates and approaches for shared brand augmentation. 
 

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