BRANDING: The Pros and Cons of Co-Branding | BusinessWeek

3 Jun

Yesterday, we were talking to one of our favorite clients about to make a move into co-branding with an east-coast product line.  This is a great move for the client because they are still in the beginning stages of making their own product, but also, because the relationship being forged is one that’s going to prove INCREDIBLY mutually beneficial.  We’re really excited!

Aside from the gloating, we wanted to share with you some helpful reminders on co-branding … honestly … sometimes it’s for you … and sometimes it’s not.

Think Beyonce and Justin, Beyonce and Usher, Beyonce and Sean Paul, Beyonce and Gaga, Beyonce and almost anyone she’s worked with actually ….


Last year, Business Week Printed a really useful article that we thought would be useful to review.

The moment Roger Penske announced his planned acquisition of the Saturn brand from GM, Saturn dealerships around the country initiated a spontaneous and organic co-branding campaign, erecting banners and billboards to celebrate the alliance.

Saturn of Wichita’s advertising proudly proclaimed: “Finally, a car guy owns a car company.” Scott Davies, owner of the dealership, explained the resulting traffic increase by saying: “People want to buy from someone they like. A lot of customers won’t buy a car from GM, but they will buy a car from Roger Penske.” That’s why Davies—and many other dealers like him—were so eager to associate Saturn with Penske.

It was an odd and unintentional (at least from GM’s perspective) co-branding effort, but it paid off. Saturn’s marketing director, Kim McGill, said the Penske announcement led to a 35% sales jump in June over the prior year.

Co-branding is nothing new, and it’s something that we as consumers take somewhat for granted. Visit a grocery store and you’ll see dozens of examples, from the ice cream aisle (Breyer’s (UL) and Hershey (HSY)) to the snack aisle (Lay’s (PEP) and KC Masterpiece (CLX)) to the cereal aisle (Kellogg’s (K) and Healthy Choice) to the dessert aisle (Cinnabon and Mrs. Smith’s). You can also find co-branding examples in the automotive world (Coach (COH) and Lexus (TM)), the hospitality industry (Bulgari and Ritz-Carlton), the footwear business (Disney (DIS) and Crocs (CROX), the franchising world (Tim Hortons (THI) and Cold Stone, the airline industry (Southwest (LUV) and SeaWorld), and even in product catalogs stuffed into airplane seat pockets (“Order your Braun Oral-B Plaque Remover today”). …

READ MORE HERE: The Pros and Cons of Co-Branding – BusinessWeek.

with <3,



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