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Strategic partnerships between brands can be a mutually beneficial relationship. It is basically the alliance of two totally different companies that get together to form and sell a new product telling of their uniqueness.
Brand collaboration will boost audience, reach new markets, and gain greater distribution and eventually revenue.
In this case study, you’ll see brand collaboration examples that fit the bill and represent a win-win for brands and consumers.
Why Co-branding?
“Double Marketing Budget and Half the Cost”
Co-branding opportunities allow you to launch a brand new product and divide the expenses together with your partner.
With this, you’ll gain visibility, and reach a new audience. When two brands come together to form a co-branding partnership, they automatically are given the opportunity to gain the interest of each other’s market.
It can help your startup in establishing credibility. The consumers who are already in love with one brand will automatically trust the newly introduced product.
Benefits of Co-branding
- Create financial benefits
- Provide customers with greater value
- Improve on a property’s overall image
- Strengthen an operation’s competitive position
- Create operational advantages
5 Examples of Co-branding Partnerships
1) GoPro+ Red Bull
Red Bull and GoPro have a best co-branding partnership example. Both brands not just sell products- energy drinks and portable cameras respectively- but a lifestyle. Both have established themselves as lifestyle brands — in particular, a lifestyle that’s action-packed, adventurous, fearless, and usually pretty extreme.
Both brands are made for each other, not only because they represent the same values for their customers but also because they both associated themselves with outdoor lifestyle and action sports.
“GoPro camera technology is allowing us to complement the programming by delivering new athlete perspectives that have never been seen before,”- Sean Eggert, Red Bull’s director of sports marketing
The collaboration allows exclusive GoPro content to enhance both companies’ growth.
2) Levis+ Google
Levi’s teamed up with Google to enter the wearable technology market. Codenamed Project Jacquard, the Levi’s Commuter-Jacquard by Google partnership manufactured a touch-and-gesture interactive denim jacket designed to prevent cyclists having to reach for their phones while riding.
By lightly selecting or swiping a sleeve on their jacket, cyclists can access a map or change a song on Spotify, for example, without give in their safety on the road.
3) Spotify+ Uber
It is another genius partnership. The ability to enter a hired car welcomed by your favorite playlist offers added value, meaningful competitive advantage and exclusivity for Uber cars.
For Spotify, it offers a reason for users to upgrade to the premium level and a unique point of difference that Pandora, iTunes or YouTube don’t have.
The partnership means one more additional benefit for Uber to differentiate itself from taxis and for Spotify to give its subscribers one more avenue to use its product, it’s simple and brilliant.
4) Google+ Luxottica
The Google and Luxottica partnership has been an excellent one. Google glasses speak to technology but not fashion and Luxottica’s brands speak to fashion and not tech.
The partnership will result in attractive Google glasses that could be purchased based on looks alone, and the cutting edge technology can give Luxottica brands a reason for purchase that explains a premium price.
Luxottica’s glasses are progressively being undercut on price by retailers such as Costco, TJ Maxx and Warby Parker.
5) Snapchat+ Square’s Snapcash
It is also an intellect partnership. Square adds the credibility of secure money transfers and also a young, hip, complementary brand image for the target audience of this service.
For Square, it adds significant incremental revenue and a further boost to its cutting-edge, hip brand image through the association with Snapchat.
Conclusion
Brands are looking to partnerships that improve their brand descriptions and boost awareness in a cost-effective and united, combining two brand budgets and marketing channels.
For partnerships to work, they must be win/win for all players. The target audiences, brand price/value insights, and level of performance must be well matched.
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