Co-Branding is a marketing activity that combines two or more brands.
Which is also called the brand bundling or brand alliances. In other words, co-branding is the process of merging the two brands to achieve the same goal. Co-branding also means combining two cultures existing in each brand must adapt and tolerate each other, in order to create a culture of co-branding. Branding strategy is to increase the strength of that brand.
The examples of co-branding are Axis who joined the XL Axiata. then followed by various other providers such as SmartFren. Co-branding is expected to realize more synergies brand and provide the value of each brand. Good values for increase the profit and the brand equity of that brand.
That’s not all co-branding become a success, there must be the possibility of co-branding unsuccessful. it all depends on strategy and build its brand. but the best possible co-branding is increasing awareness that is larger than before uniting the two brands. because each brand has a different customer base.
This condition can increase your potential customers to try the product concerned. And to build strong brand loyalty that does co-branding should maximize the good product quality and customer satisfaction with a new concept.
co-branding should require considerable discipline in relation to expedite the passage of the two brands together. in situations of co-branding, a number of factors must be taken into account for each unique co-branding effort and will require special adaptations of general principles.
Advantage Co-branding are revenue from royalties which the brand is used it can negotiate royalty payments. co-branding can also be a source of new revenue or secondary source of income. in addition to the co-branding will expand the possibilities to increase sales, provide an opportunity to enter new markets, offer additional benefits, minimize investment, reduce risk, benefit more quickly, has a premium price so successful in the market at that price, and increasing customer interest.
Co-branding has depended on the need of the brands involved. the categories are, Component Co-Branding, incorporating components that are owned by the respective companies and made it into one device. Joint Venture Co-branding, multiple companies collaborate on a big shared goal. Media Co-Branding, the examples are Video, Movie, and other media are often co-produced with shared credit. National to Local Co-Branding, a local company partners such as local banks offering branded credit cards. Sponsorship Co-Branding, a brand sponsor an event for shared exposure and goodwill. And then Specialist Co-Branding, that a company focus on competency seeks to partner with multiple businesses to highlight its product or service.
Risks in Co-branding are greed for money, because there are those who are too focused on financial gain to be obtained, without regard to the interests of cooperation. corporate personality differences, because if each has a different style it is necessary to make adjustments. Changes in a financial status partner, where there is often one of the companies whose merger is a company that is experiencing a crisis in the financial, or even some bankrupt. merger or takeover, when one is taken over by another party, co-branding agreement can fail and can’t continue because of the policies that may change. Changes in market behavior, when a sudden change in market behavior or any other competitor, then it can be a serious threat. The risk of loss of identity may only be viewed by subscribers to miss the real identity of these brands before in co-branding. positioning changes, failure to meet the targets, as well as the creation of a single brand or a brand that joins seen only one brand that stands out and is expanding.