Co-Branding/Dual Branding

Co-branding (also called Dual Branding) has become a rage in the marketing arena, with companies realizing that isolation is not after all the best policy.

The markets of yesterday saw companies focusing on the customer thinking about “How can I promote my jeans?” The marketers today believe that the myopia needs to clear off to a “How do I define my customer?” approach. By saying, “defining my customer”, i don’t mean getting back to classroom and assessing who the target consumer is. Defining a customer means more in terms of creating a persona for the customer, or rather shaping the customer.

Kotler defines [tag]Co-branding[/tag] as “two or more well-known brands are combined in an offer” and each brand’s sponsor expects that the other brand name will strengthen the brand preference or purchase intention and hopes to reach a new audience.

He talks of co-branding being quite beneficial such that:

  • Many line extensions capitalize on a partner’s brand equity.
  • Brand extension success rates are maximized in the new market when co-branded with the reputed brand that has established in that market.
  • Co-branding may help usage extension.
  • Image reinforcement may take place due to co-branding.
  • Loyalty programs increasingly include co-branding arrangements. The corporations are sharing the cost of loyalty programs; hence, the promotional costs to the companies are coming down.
  • Co-branding signals a trade marketing operation.
  • Capitalizing on the synergies among a number of brands is yet another advantage of co-branding.


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