Posted on : 2022-10-21 03:04:12
Article : Good evening, Friday management TASK 213- Why brands are teaming up to stand out! Collaborations have certainly grabbed attention in recent years, but what’s in it for the brands themselves?
Co-branding is a strategic marketing or advertising partnership between two non-competing brands like Greggs sliders, Tony’s Chocolonely ice cream,- KFC bucket hats collaborating with fashion or sportswear brands etc. Collaborations have certainly grabbed attention in recent years, but what’s in it for the brands themselves? Whether it’s a great musical collaboration or a tasty wine pairing; two great things coming together can sometimes result in magic. While in the fashion industry brands have been grabbing attention through collaborations for years, recent times have seen some more unexpected tie-ups. “Brands more than ever are now trying to prove their difference to prove why you should choose them over someone else,” says Kantar brand strategy consultant Tom Lees.
Lees advises that before brands embark on partnerships, they must look at their existing and target customers to understand their habits and which other brands “are in their ecosystem”. Brand partnerships can be also used to “drive legitimacy” for businesses moving into new spaces. The better example is of Beyond Meat partnering with McDonald’s on its McPlant burger. This collaboration helped lend more credibility to McDonald’s by borrowing Beyond Meat’s expertise. There are risks involved, which is where consideration comes in. It’s not just going out and picking someone that seems cool, or is a trend at that moment. It is about choosing businesses that share your values, match with your brand and what you’re trying to do, but also help you connect with more of your target audience.
Brand collaborations have gained popularity in recent years as brands within and between different industries pair up to offer new, fun experiences to their audiences. Especially in this age of social media, brands utilize collaborations as part of their marketing and advertising strategy to find success for both brands in the partnership.
Knowing the basics of branding makes us understand better about the purpose of co-branding, which is to combine and leverage the strength, awareness, and positive associations of multiple brands. Collaborations leverage each consumer segment’s strengths and build reach for new markets. This strategy has led the brands to enter new markets. A good and well-planned collaboration between brands has the potential for each brand to overcome one of its weaknesses by leveraging the other’s strengths. Brand collaborations expose consumers of both brands to new and fresh experiences, which creates positive buzz and reinvigorates brands.
It might seem counter-intuitive for brands to partner up to stand out, but distinctive collaborations can generate buzz for those involved. Recent examples include Primark launching an apparel range with bakery chain Greggs and sportswear brand Adidas collaborating with fashion brand Gucci. For luxury brands like Gucci, collaborations with Adidas and outdoor brand The North Face have enabled the fashion house to introduce itself to people outside its existing audience. While Gucci is a specialist in luxury, North Face is a specialist in adventure and if you can tap into both of those, then you’re using your specialism and your expertise to then reach a new audience in an interesting and dynamic way. Gucci launched a first iteration of its collaboration with The North Face in January 2021, before releasing the second in January 2022. The Adidas x Gucci collection landed in June 2022.
While making this article we have re-shared certain information which few other consultants have expressed. Now comment your perspective ideas and thoughts on brand collaboration examples from your market observations or career experiences. Our management solution with detailed examples will be posted on our Good morning, Monday management solution post on 24th Oct 2022.
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