Co-branding is a marketing theory by combining multiple brand names of products/services to compliment participating company’s weaknesses. When effectively done, it’s a marketing effort that works in synergy.

On online businesses, co-branding can increase company’s products/services exposure to its target audiences when smartly combined. It is an effective way to broaden an existing or new brand on the Internet or offline marketplace. 

A McKinsey study has shown that co-branding companies has proven growth in terms of revenue by 40%. Another result by American Marketing Association some years ago also shown 80% consumers responded that they are more likely to buy a digital imaging product co-branded by Sony and Eastman Kodak. This has indicated co-branding practices are as good as theory.

The objective of co-branding may differ from companies, while one company may be interested to increase revenue, the other may be interested to broaden brand recognition; to penetrate a new market; or to introduce a new product/service. Whichever objective may be, co-branding can be applied only in particular situation, with involved companies should absolutely certain that his objectives coincide with the co-branding opportunities or marketing campaign strategies suggested.

Also, this is true that not all co-branding arrangements are economically and operationally feasible. There is no guarantee that co-branding will succeed. The right mixes of synergetic partners are crucial to a co-branding success.

A brand’s values are often imprinted into the mind of consumers. Effective co-branding marketing execution by leveraging on each other strengths and loyalty will eventually boost brand’s confidence.

The ability to share and access to broader customer base without business conflict will form a new relationship, which may not be seen as a competition threats. In return, companies would benefits by accelerating co-branded images and revenues.

Concept behind co-branding strategy is to generate additional market share, it is ultimately to increase revenue stream through consumer awareness by co-branding multiple brands.

Duration of a co-branding promotion or strategy may vary depends on its marketing planning. It can last as little as a few weeks or it can be strategically long-term. It is always easier to gauge the success of short-term promotion as it is normally aimed for short-term sales gain. However, long-term co-brand loyalty will be harder to say.

As a conclusion, to paraphrase the power of co-branding, one plus one equals to three. We have been hearing co-branding exist between business giants; can smaller players be more creative and more strategic in terms of co-branding arrangement and promotion. In theory, co-branding can be used as a new marketing channel for smaller online companies to promote their products online. But the question remains, has it been effectively executed by smaller online players?

Agrona Ng
Entrepreneur, Author, T-Shirt Designer. To check out latest website titled "The LittleMen", please visit to http://www.littlementees.com or http://www.cafepress.com/thelittlemen