How Brand Collaborations Become a Win-win Situation

Ever noticed two different brands (or different businesses) promoting each other through its marketing campaign? Are those brands collaborating to promote the same message for similar audiences? What are the benefits for brand collaboration?

Brand Collaboration, sometimes known as co-branding, happens when two or more brands work together with a purpose to create marketing synergy. In some cases, co-branding can also be done through sponsorships.

Brand Collaboration Strategy is commonly used to keep ideas fresh and exciting (mostly applied in fashion industry or large projects such as property development). When two brands’ strengths are combined, customers are willing to pay premium price to get this limited edition collection. Moreover, the two brands collaborating are the ones you absolutely love. One of the most well-known and successful collaboration is McDonalds X Cartoon Characters. As McDonalds’ audience is mostly families, their famous happy meals are created especially for kids. McDonalds always collaborate with cartoon characters such as Minion, Doraemon, Pikachu and others to keep the brand fresh.

Below are some benefits how brand collaborations can create a win-win situation.

Help both companies raise innovation and its networks.

Co-branding strategy will definitely help both brands raise its innovation and networks. When two brands work together, creativity and innovation between the two can happen as they share marketing strategies. Brands can learn from each other and most importantly, share its networks within the same marketing campaign.

Boost company sales if done properly

Brand collaboration is not always successful, but when it is done properly this may boost company sales. Two brands may need to evaluate their values, ensuring their audiences are from the same segment. It is essential to have share connections between brands to create synergy. Once every element is clicked, this will definitely boost company sales.

Develop deeper relationships to sustain brand loyalty

In branding, relationship between a brand and its customers is the most valuable asset. When your customers trust your products, they become loyal to you and are willing to spread recommendations about your brand. Co-branding is even better. Great marketing campaigns when collaborating generate deeper relationships to customers. Word-of-mouth will happen undoubtedly.

To conclude, there are many benefits for both brands when collaborating. As long as both companies share the same beliefs and goals, collaboration will generate publicity for your company and create a win-win situation. Should your business need some advises and marketing campaigns to co-branding, our team is happy to help.