Posted on : 2022-09-11 23:42:05
Article : Good morning, Monday Management solution for TASK 207- Successful Co-Branding Partnerships are so Effective, and they pave way for interested business organisations.
Everyone has loyalties to their favorite brands, but there's a good chance that your favorite products are the result of two separate brands working together. There's something brilliant about that co-branded product: It's a fun way to marry two classic brands into one delicious experience for fans of baking and chocolate alike. In fact, these brands still create new co-branded products to this day.
Co-branding is a strategic marketing and advertising partnership between two brands wherein the success of one brand brings success to its partner brand, too. Co-branding can be an effective way to build business, boost awareness, and break into new markets, and for a partnership to truly work, it has to be a win-win for all players in the game. Both audiences need to find value -- like chocolate-loving fans of Betty Crocker and Hershey's.
Casper & West Elm -Co-branding Campaign: Test a Casper Mattress
You may have already heard of Casper -- it's an online mattress and bedding brand that sells mattresses in a box. Casper mattress unboxing videos have become a hit on YouTube, but despite the brand's 100-day return policy, some shoppers might still be hesitant to buy a mattress without getting the chance to roll around in it first.
Enter West Elm, a high-end furniture company. Casper and West Elm partnered so shoppers could try out the comfy mattress before purchasing -- and so West Elm could advertise its chic bedroom furniture. This is another example of a mutually beneficial co-branding partnership. It helps both brands appeal to a broader group of shoppers -- after all, Casper doesn't sell furniture, and West Elm doesn't sell mattresses. It also provides shoppers with options -- to try a mattress before buying, or to feel what it would be like sleeping in a bed frame.
Kanye and Adidas Co-branding Campaign: Yeezy
Kanye West, best known for his Grammy-winning rap albums, partnered with Adidas to develop a high-end footwear line called Yeezy. The combination of Kanye's personal brand and Adidas' growing streetwear segment has made for robust company earnings and brand growth since it was introduced.
Kanye's celebrity appeal benefits Adidas by creating buzz around its apparel, and the athletic-wear brand gives Kanye a well-established platform to build his high-end clothing line. One of the strongest draws of Yeezy -- and most notably its shoes -- is its exclusivity: Kanye's celebrity status, extremely scarce roll-outs, and the high price tag make the lucky few to own Yeezy sneakers feel a little famous by association.
Adidas' co-branding relationship with Kanye and the resulting cult-like Yeezy following led to a stellar year for the company: in 2019, Adidas' net income climbed 19.5% to $1.9 billion.
Apple & MasterCard Co-branding Campaign: Apple Pay
Sometimes, co-branding partnerships aren't just cool projects between two companies -- they actually have practical value when the companies work together.
When Apple released the Apple Pay app, the brand effectively changed how people perform transactions. This app allows people to store their credit or debit card data on their phone, so they can use them without physically having the card with them. But in order for this app to succeed, it needs credit card companies to integrate with this technology. By the same token, credit card companies also face more competition themselves if they aren't compatible with the latest consumer purchasing tool.
To get out ahead of its competition, MasterCard became the first credit card company to allow its users to store their credit and debit cards on Apple Pay. MasterCard not only showed support of a major consumer tech developer in this partnership -- it evolved along with its own customers in how they choose to make purchases at the counter.
UNICEF & Target-Co-branding Campaign: Kid Power
If you have the chance to partner for a not-for-profit cause, it can pay off in multiple ways. In 2015, Target partnered with UNICEF on a campaign called Kid Power, which committed Target to one of UNICEF's sustainable development goals (SDGs). The retailer sold kid-friendly fitness trackers encouraging the wearer to complete various fitness activities, which ultimately helped deliver food packets to underprivileged children around the world.
By selling this fun, inexpensive fitness product, Target encourages children to embrace a healthy lifestyle and uses kids' successes to supply underserved communities with the resources they need. It's an ongoing partnership that generates awareness of global malnutrition, helps UNICEF meet its demanding SDGs, and opens up Target to a demographic of giving families they might otherwise have had access to.
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