Co-branding, new strategies to produce special products

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Co-branding, new strategies to produce special products

Co branding new strategies to produce special products

In the beginning of 2021 yesterday, a product came a result of the collaboration of herbal medicine with a brand makeup which then became a viral. Well, the results of this collaboration are called co-branding.

These co-branding products tend to be very special and unique, so they can attract consumers. Some of them are even sold limited, so it can increase the interest of consumer buying.

But, what is actually co-branding? How does a brand capable of cooperation with other brands in order to do co-branding? Find the answer to reading this article completely.

Understanding Co-branding

Sourced from the Investopedia page, co-branding is a strategy that can utilize various brands of products or services as part of a strategic business alliance.

Each brand that collaborates in this strategic alliance will donate its identity to be able to produce a brand that blends with the help of a logo or a special color scheme to confirm the identity of the brand.

This co-branding activity can be done two or more brands that consciously, believes, and agreed to agree to collaborate on special products.

Advantages of applying co-branding

What are the advantages that can be obtained by the company involved in this co-branding strategy? What are the company’s goals in doing co-branding? The following is the answer:

1. Increased brand equity

Every company that conducts co-branding certainly wants the brand equity to increase, which some of the collaborated products will certainly have a high brand equity.

When some of them are put together in a particular product, then the level of trust and all components that make up brand equity such as the level of image, awareness, and loyalty of consumers in the new product will increase higher.

High brand equity on co-branding products in turn will channel its energy back on the brand that became his support. So, there is an increase in brand equity from several brands that are used as the business alliance.

2. Increased sales volume

In addition to being able to increase brand equity, other advantages of the implementation of co-branding are able to increase sales and profit companies.

Well, in achieving a high increase in these sales, some companies that carry out co-branding often have to go through a simple process and a short time. But, not infrequently this process requires time that tends to be longer and very complex.

It can be said as simple and fast because in this co-branding process when applied is able to produce new products that can increase the attractiveness of consumers to make a large amount of purchase than if the product brand is marketed separately.

Consumers will assess this co-branding products capable of providing higher value to them than brand products sold separately by each brand.

In addition, generally consumers also feel that the money they have to spend is also cheaper than when buying the product separately.

The brand of each product that collaborates is also very well known by the community, even they can feel the benefits. Therefore, when the brand who collaborates this collaboration is put together, consumers will be directly able to feel their profits in total.

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On the other hand, co-branding that takes a long time to be able to provide benefits to consumers is generally due to the process of applying which is indeed very complex.

In this co-branding process, new products from co-branding must be able to be communicated first, so must be made by the brand awareness first.

Consumers from each brand of products that collaborate must obtain information related to co-branding products and what they can get excess. Then, the brand image must also be made from this brand, where the image will later be able to accommodate the entire brand that has been made from brands that collaborate.

In fact, it is often necessary to creation of loyalty to a certain point in order to make co-branding products that can provide sales according to the target.

3. Improved market share and brand awareness

We must admit that one of the goals of this co-branding is to introduce one product brand to consumers from other product brands.

As we also know that each product brand must have loyal customers, so by doing co-branding, it is expected to increase consumers and in the end there will be an increase in market share.

With the presence of co-branding products, consumers who initially do not know other products can finally get to know the product.

4. Higher profitability

The final strength of implementing co-branding is the achievement of sales levels and increasing profitability. This is because co-branding is able to improve buying power from consumers.

That is, each product must have a consumer percentage with high buying power. For example, A brand products have a consumer average of 75% and consumers with a high level of power buying, which is equal to 25%.

Then the B brand product has an average consumer as much as 70% and consumers with higher buying power, which is 30%.

If the two products are sold separately with high price levels, then each brand of this product will only be purchased by 25% and also 30% of total consumers.

Whereas if they do co-branding, it will be very possible to produce sales of more than 25% and 20%. Why? Because by doing co-branding, it will produce products at prices below the total all products that collaborate.

That means, there will be an increase in sales, the result of increasing consumer purchasing power, and the increase in sales means an increase in the total profit of the company.

Lack of co-branding

Even though it does have many advantages, this type of collaboration still has many shortcomings. The following are some shortcomings that are likely to occur when doing co-branding.

  • Collaboration will demand a brand to provide trust and resources, and must follow the grooves of existing guidelines. Without this doing, the co-branding will be difficult to run.
  • Companies must consider consumer responses from co-branding results. The brand image that had previously been formed would collide and could cause the dependation of the market segment that was intended if the company failed to show a good and reasonable connection.
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If these two things cannot be considered, the resulting product can fail, and the brand image of the two brands can drop dramatically, and the efforts that must be incurred will become more expensive.

Examples of Co-branding products

To make it easier for you to understand co-branding, here we provide examples of products that have done co-branding from different industries.

1. Oreo X Supreme

Oreo X Supreme is one example of co-branding products that successfully steal public attention, not only food lovers, but also lovers of fashion products, especially supreme product lovers.

These food products are sold limited and priced at prices that are far more expensive than Oreo products in general. One pack of oreo x supreme with the contents of three pieces is priced at $ 103.41.

2. Chitato x indomie fried

Examples of other food co-branding products that have succeeded in stealing public attention are products from collaboration between Chitato and Fried Indomie.

Both of these products already have many interested ones because they have a very distinctive taste. Combined in these two flavors will certainly make every fission to be very curious. Therefore, it is not surprising that this product is immediately invaded when the release is announced.

3. Mizzu x khong guan

Examples of co-branding products that are very surprising the public is likely to be a collaborative product between Mizzu and Khong Guan.

Mizzu himself is one of the famous makeup brands that already have many makeup fans. While Khong Guan is one of the well-known biscuits for years.

Instead of making food products such as Oreo X Supreme, Mizzu and Khong Guan actually collaborate with releasing cosmetic products such as Khong Guan products. Of course, the results of this collaboration product are able to attract makeup lovers who are very interested in typical packaging.

4. Refuse the wind x upmost

As we already tired at the beginning of the paragraph, there is a herbal product that successfully collaborated with a cosmetic brand. The results of collaboration products between the Brand reject the wind to present pallete eyeshadow.

Uniquely, this Eyeshadow product was presented with eight colors mentioned inspired by the color of herbal medicine rejecting the wind itself.

The presence of this product then managed to attract the attention of the Warganet which made this form of collaboration into a viral.


Thus the explanation of us about co-branding. So, co-branding is a strategy that can take advantage of various brands of products or services as part of a strategic business alliance.

This form of collaboration has its own advantages and disadvantages, and there are already several products that have successfully carried out this strategy. In order for your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can improve visitors in your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.