What is "cobranding" and its benefits for your business
Posted: Sun Jan 26, 2025 11:10 am
There are many strategies that can be implemented in marketing and communication. Although there are certain established standards in what brands do to promote a product or service, a disruptive model can always appear. This is exactly what happens with cobranding: although it was seen as a risky maneuver some time ago, today it is used daily by millions of companies around the world.
It is often said that unity is strength, and that is precisely the DNA of cobranding: the alliance of two or more companies to promote a product or service . It is believed that the first cobranding action was in 1956 , when Renault had Jacques Arpels turn the dashboard of one of its newly introduced Dauphines into a work of art. But the 20th century is full of examples, with varying degrees of success, since this merger can bring numerous benefits but does not guarantee success.
photo agreement
You may also be interested in: Why product placement is important for your brand
Types of cobranding and success stories
As with any partnership, the details can vary substantially, depending on the type of business and how far the brands want to go in their collaboration. A very common thing is the joint raffles that we see continuously on social media.
Generally, big brands team up with their peers , but there are hungary number data no written rules in cobranding. Taking this into account, we can find the following variants:
Value cobranding: this type of alliance establishes brand value as the main asset of the collaboration. One complements the other and is used as a force with the ultimate goal of improving the image of both. The impact on the target audience of both can be very positive.
Cobranding of complementary competences : This is a close collaboration that results in the launch of a new product or service. It can bear the seal of both companies and be sold through the channels of both companies.
Knowledge cobranding: This case occurs between two businesses that have a similar target audience. One relies on the impact of the other to expand its business at a territorial or national level and boost sales or distribution channels.
Ingredient cobranding : This is achieved through the synergy between both companies. Their business model may be similar or at least have customers who can consume the products of both companies. If they are complementary enough to be able to launch a single product with ingredients from both companies, cobranding will become a reality.
Examples of cobranding
Since the 1950s, the history of marketing is full of examples of cobranding . Let's review some of the most successful brand collaborations.
Go Pro and Red Bull
Who doesn't remember Felix Baumgartner's leap from the stratosphere, equipped with a GoPro and a Red Bull suit? Both have established themselves as lifestyle brands. In particular, an action-packed, adventurous, fearless and, usually, quite extreme lifestyle.
To make the partnership work, GoPro equips athletes and adventurers around the world with the tools and funding to capture races, stunts and action sporting events on video, while Red Bull uses its expertise and reputation to organize and sponsor these events.
Starbucks and Spotify
Starbucks expanded its premium coffee experience into a massive global brand . And together with Spotify, it forged an innovative co-branding partnership to build a “music ecosystem,” offering artists greater access to Starbucks consumers and giving Starbucks access to Spotify’s streaming services.
In case you didn’t know, Starbucks employees get a premium Spotify subscription , which allows them to curate playlists to play in stores. Customers in the cafes can access them through the Starbucks mobile app.
Apple and MasterCard
With Apple Pay, the brand changed the way people make payments. To promote and strengthen its system , MasterCard became the first credit card company to allow its users to store their credit and debit cards in Apple Pay.
McDonald's and Burger King
Burger King and McDonald's are fierce competitors in the fast food world, but in 2019 they entered into a historic co-branding partnership. At the time, McDonald's was donating $2 to children's cancer charities for every Big Mac purchased.
Burger King supported this cause with its "A Day Without a Whopper": for one day, in certain countries, it removed the Whopper from its menu in an effort to encourage the purchase of McDonald's Big Mac.
It is often said that unity is strength, and that is precisely the DNA of cobranding: the alliance of two or more companies to promote a product or service . It is believed that the first cobranding action was in 1956 , when Renault had Jacques Arpels turn the dashboard of one of its newly introduced Dauphines into a work of art. But the 20th century is full of examples, with varying degrees of success, since this merger can bring numerous benefits but does not guarantee success.
photo agreement
You may also be interested in: Why product placement is important for your brand
Types of cobranding and success stories
As with any partnership, the details can vary substantially, depending on the type of business and how far the brands want to go in their collaboration. A very common thing is the joint raffles that we see continuously on social media.
Generally, big brands team up with their peers , but there are hungary number data no written rules in cobranding. Taking this into account, we can find the following variants:
Value cobranding: this type of alliance establishes brand value as the main asset of the collaboration. One complements the other and is used as a force with the ultimate goal of improving the image of both. The impact on the target audience of both can be very positive.
Cobranding of complementary competences : This is a close collaboration that results in the launch of a new product or service. It can bear the seal of both companies and be sold through the channels of both companies.
Knowledge cobranding: This case occurs between two businesses that have a similar target audience. One relies on the impact of the other to expand its business at a territorial or national level and boost sales or distribution channels.
Ingredient cobranding : This is achieved through the synergy between both companies. Their business model may be similar or at least have customers who can consume the products of both companies. If they are complementary enough to be able to launch a single product with ingredients from both companies, cobranding will become a reality.
Examples of cobranding
Since the 1950s, the history of marketing is full of examples of cobranding . Let's review some of the most successful brand collaborations.
Go Pro and Red Bull
Who doesn't remember Felix Baumgartner's leap from the stratosphere, equipped with a GoPro and a Red Bull suit? Both have established themselves as lifestyle brands. In particular, an action-packed, adventurous, fearless and, usually, quite extreme lifestyle.
To make the partnership work, GoPro equips athletes and adventurers around the world with the tools and funding to capture races, stunts and action sporting events on video, while Red Bull uses its expertise and reputation to organize and sponsor these events.
Starbucks and Spotify
Starbucks expanded its premium coffee experience into a massive global brand . And together with Spotify, it forged an innovative co-branding partnership to build a “music ecosystem,” offering artists greater access to Starbucks consumers and giving Starbucks access to Spotify’s streaming services.
In case you didn’t know, Starbucks employees get a premium Spotify subscription , which allows them to curate playlists to play in stores. Customers in the cafes can access them through the Starbucks mobile app.
Apple and MasterCard
With Apple Pay, the brand changed the way people make payments. To promote and strengthen its system , MasterCard became the first credit card company to allow its users to store their credit and debit cards in Apple Pay.
McDonald's and Burger King
Burger King and McDonald's are fierce competitors in the fast food world, but in 2019 they entered into a historic co-branding partnership. At the time, McDonald's was donating $2 to children's cancer charities for every Big Mac purchased.
Burger King supported this cause with its "A Day Without a Whopper": for one day, in certain countries, it removed the Whopper from its menu in an effort to encourage the purchase of McDonald's Big Mac.