Marketing goods or services with two or more brand names of different companies is a popular approach businesses take today as their co-branding strategy. Clearly, to expand an existing or fresh brand’s publicity within the market which can be utilized in a lot of ways.
Even though co-branding is not a new idea, it stays important to think about the strategic aims of the project as well as to deal with all the potential risks earlier than it is launched.
To guarantee that each and every participant gain from the campaign, it is essential to discover the right associate – the compatibility of prospective associates have a key role during the success of the project.
The parties must not essentially be of the same size or reputation. When a main associate links forces with a less important trade name, the minor associate generally gains from the belief and reliability that connect to the better trade name, as the second may utilize the minor trade name to make a way into new market regions.
Co-branding with two or more small associates can be more strategic as well as innovative.
In this type of circumstances groups have to guarantee that the total amount of the combined marketing endeavour results in better brand identification than what would have been attained by means of individual promotions.
Once a like-minded associate has been known, the threats to the co-branding plan have to be thought about and dealt with.
It is particularly significant that suitable contractual method be put in place to make certain that accomplices keep rights of, and quality control on, their individual brand names. This can be achieved with appropriately phrased, mutual brand name licences included into the co-operation contract. These licences must not just specify what would represent approved use of the parties’ brand names, but which constraints and restrictions are relevant.
A grave threat which all brand name owners have to guard against is the dilution of their brand names, where utilization of the brand name on products excluding those regarding which the brand name is registered or will damage its individual standing.
The threat of dilution is innate in co-branding and for the same reason agreement must provide a participant with the choice to end the licence in suitable situation.
Co-branding is not adopted for all businesses. Nonetheless, in spite of the threats involved, co-branding applicants can get huge advantages from this sort of practice, provided the correct situation and assured that it is designed and handled with the essential care.