Co-branding is a form of brand extension where a marketing collaboration is made between two or more firms. PR agencies in Delhi vouch for co-branding as it can benefit enterprises if done right.
What is co-branding
Co-branding comprises two kinds:
- Ingredient co-branding that focuses on the development of value creation via collaboration with firms whose products/services are leveraged in your products/services. For instance, Intel can be considered as the ingredient brand to Dell as the technology major uses Intel’s core processors.
- Composite co-branding focuses on collaboration between two or more firms to manufacture a product or found a new service. For instance, British Airways and Citibank collaborated to launch a credit card that registers members to the British Airways Executive Club automatically.
How can co-branding prove to be advantageous
- Boosts credibility
When an enterprise decides to partner with a well-known brand, its trust ensured doubly, based on the credibility of the collaborating businesses. This reinforced and strengthened brand trust is likely to impact sales directly.
Delhi-based PR agencies feel that media monitoring tools are capable of measuring the sentiment of the buzz created on social and traditional media, offer insights on whether people have faith in a brand, or not. Leading PR agencies are of the opinion that brand should be careful to have the knowledge and analyse sentiments around a brand it is looking to partner with.
- Infusion of cash
Top PR agencies based in Delhi that offer branding services is an effective marketing route to get the best bang for the buck. If partner enterprises decide to spend their usual marketing budget on joint initiatives, the efficiency level of a campaign is likely to improve as compared to an independent campaign.
- Strengthened visibility
Co-branding also boosts reach. Collaborating firms mean enhancing inherent brand strengths. Partners advertise/promote products/service for one another, which eventually increases the message reach.
Things to take into account before inking collaboration
- Size is important
Bigger firms are better positioned to offer credibility to a startup /small business as they are better positioned to transfer their popularity and positive image to the smaller companies. Hence, leading PR agency
suggest that small businesses should collaborate with less established brands or emphasis in areas where there is less competition and they can truly contribute.
Use of media monitoring tools can come in handy for social listening to identify a brand that enjoys popularity and has a high buzz.
Planning to implement co-branding initiatives for your business? Speak to our consultant and make your company stand out amidst competition.