Co-branding is a branding strategy used to form a strategic alliance between two companies. Many companies use this strategy to expand their customer base, gain financial benefits, strengthen their competitive position, introduce a new product, and increase media exposure.

In a winning co-branding partnership, both brands have a natural synergy that can leverage the loyalty of their customers. For example, Disney has been very successful in increasing its market exposure by partnering with McDonald’s to offer Disney toys that are exclusively made for Happy Meals. Nike and Apple are two strong consumer brands that partnered to create the Nike + iPod Sport Kit, a highly popular product amongst both Apple and Nike customers.

Partnership Considerations

Here are some things to think about when evaluating whether a co-branding partnership is right for your company:

• Is the brand you are considering a partnership with have a similar target audience?
• Is the mission of your company aligned with that of your prospective co-brand partner?
• Will the partnership drive adoption or sales of the co-branded product?
• Will it enhance your company’s media coverage?

Program Elements

When thinking about how the program should be executed, here are some program elements to consider:

• Media outreach - Is there newsworthy story about the partnership to share with the media?
• Advertising – Is there an advertising component to the co-brand partnership?
• In-store/retail co-branding – Is there an opportunity for displaying a co-branded label on the product or in the store?
• Program launch - Is there an opportunity for a launch event to generate media coverage?
• Online – Can the co-branded product or service be offered or spotlighted on both company websites for maximum exposure?
• Community/cause - If giving a portion of the proceeds or sales to a cause, it is recommended that the cause have relevance to both brands.
• Exclusivity - Is the partnership exclusive to the two brands?
• Partnership terms - How long with the partnership last and what are the options for renewal?
• Licensing - Are the licensing terms of the agreement reciprocal?

It goes without saying that you should perform a comprehensive evaluation of the company that you are considering a partnership with – it is equally important to understand the risks in addition to the rewards of the relationship. After your evaluation, you may decide that an alliance with another business may not be the best strategy for your company for gaining market and media exposure. But, when executed carefully and thoughtfully, a co-branding partnership can be an effective part of your company’s marketing strategy.

Kimberly Stirdivant is Managing Supervisor with Fleishman Hillard Public Relations in Los Angeles.  She is a senior public relations strategist with 10 years of agency and in-house experience, with responsibilities for implementing public relations, brand marketing and event marketing strategies to enhance visibility for a wide range of clients within the consumer and entertainment spaces.