What Is Co-Branding? Top Examples Of Successful Partnerships

We all love music and one of our favorite places to listen to music is in the car right? 

Travel in a taxi and you’re stuck with the driver’s poison.

Travel in an Uber and you can take control with Spotify thanks to a co-branding partnership.  

Spotify premium users can now listen to their favorite music during Uber rides through the car’s entertainment system.

It provides a more personal, enhanced experience during rides.

They were implementing a strategic co-branding partnership that would help them strengthen their customer base, improve customer loyalty, and enhance brand recognition.

In this article, you will discover co-branding partnerships in detail, along with some of the best examples of successful co-branding partnerships we have ever seen.

We all love music and one of our favorite places to listen to music is in the car right? 

Travel in a taxi and you’re stuck with the driver’s poison.

Travel in an Uber and you can take control with Spotify thanks to a co-branding partnership.  

Spotify premium users can now listen to their favorite music during Uber rides through the car’s entertainment system.

It provides a more personal, enhanced experience during rides.

They were implementing a strategic co-branding partnership that would help them strengthen their customer base, improve customer loyalty, and enhance brand recognition.

In this article, you will discover co-branding partnerships in detail, along with some of the best examples of successful co-branding partnerships we have ever seen.

What Is Co Branding? (5 Powerful Strategy Examples)

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What Is Co-Branding?

Chances are, you already know or have understood what co-branding is from the Uber-Spotify example.

But let’s still have a look at its definition.

Co-branding is a strategic alliance between multiple brands that combines partner brand identities and resources on products or services for the mutual benefit of all parties.

So it is a marketing strategy that brings two or more brands together to combine their brand images, identities, and resources.

In some cases it means brands coming together to co-create a co-branded product, in others, they simply come together to co-sponsor an event.

When we see the likes of Nike and Apple or Spotify and Uber side-by-side, more often than not, there’s an intricate strategy behind it.

Co-Branding Vs. Co-Marketing

So what’s the difference between co-branding and co-marketing?

Co-marketing is a partnership between multiple brands that align their messaging and marketing but does not introduce a new product, service, or experience. 

If Cristiano Ronaldo appears in one of Nike’s ads wearing Nike’s shoes and holding an Apple iPhone in his hand, then that’s co-marketing.

But if the Nike shoes can track activities using an Apple chip and send it to the iPhone, then that’s co-branding.

And these two companies have been creating such innovative products through a co-branding partnership.

Co-branding introduces a new product, service, or experience. 

Co-marketing only cross-promotes already existing products, services, or experiences.

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Benefits Of Co-Branding

So why would any brand share its identity and resources with another brand?

Obviously, the returns are that big.

Like, really big.

Remember Doritos Locos Tacos, the co-branded product of Doritos and Taco Bell?

Well, in 2012, these two brands sold a billion of them! (More on that in the examples section).

But the sales and profits are not the only benefits of co-branding.

The partnering brands can tap into the customer base of other partner brands and increase market share, brand awareness, and customer loyalty alongside profitability.

Co-branding introduces a new product tailored to each of the partnering brand’s customer base. Yet it can also attract new business.

In fact, 43% of consumers would try a co-branded product from a company they already like.

You get the point, right? A co-branded product is a medium to unite the customers of partner brands.

Also, two brands running digital marketing campaigns on their social media handles mean double the marketing budget, double exposure for the product, and hence for the brands.

If the partnership is successful, it’s a win-win for all brands.

But to be successful, a lot of things need to go right.

It requires a lot of trust, sharing of resources, alignment of brand messaging and values, detailed guidelines, and most importantly, a positive consumer reaction.

In other words, a co-branding commitment is not to be taken lightly.