A common misconception held by new business owners is that starting an independent business, means doing everything alone. Many successful businesses have proven that just the opposite is true; your business can increase revenue and marketing through a strong brand partnership.
Brand partnership, or co-branding, is when two companies work together to market and improve their products. Below are a few examples of co-branding and how they can benefit your business.
Ingredient co-branding
This is when two (or more) businesses merge their materials to create one product that features components of both. For example; Betty Crocker’s Premium Brownie Mix with Hershey’s or Carvel producing a line of limited edition Nutella ice-cream.
This is a great technique for small businesses to consider when trying to raise awareness for their product. It’s akin to a independent film featuring one well-known celebrity. Consumers are often wary of new products, without a familiar source that they deem “credible.”
National to local co-branding
When a local small business partners with a national brand or network to reach local consumers. Your small business can benefit greatly from a strategic partnership with a bigger business because it gives you access to shared resources; advertising, product development, technology, branding, and more. Your business can leverage a partnership with a larger company to compete with other businesses that would otherwise be on a different playing field.
Joint venture co-branding
In this form of co-branding, two or more companies form a strategic alliance to create a product that promotes and benefits both businesses and gives extra perks to the customer. For example, the Gold Delta SkyMiles® Credit Card from American Express, offers 30,000 bonus miles for new cardholders, 1 mile earned for every purchase, priority boarding, first checked bag free, and discounts on in-flight food and entertainment.
Partnering with other companies to create a single product with multiple benefits gives your business the opportunity to increase sales and advertise your company name. The customer gets a great deal and each business gets a slice of the pie.
Synergize
While there are certainly many benefits to brand partnerships, it is critical to choose a business that complements your own. In order to form a successful brand partnership, both businesses must be willing to work together on an equal level, sharing resources and marketing strategies. Division of responsibilities must be made clear and communication is vital.
If you are considering moving forward with a brand partnership, consider contacting YourOffice to help you communicate with business partners anytime and anyplace. YourOffice offers a wide choice of office and workspace solutions: virtual office space, meeting room access, videoconferencing tools, and coworking office space.
