In today’s brand-centric world, co-brands are everywhere. From fast-food joints to credit card companies to fashion, co-branding has been making its mark on business strategy since at least the 1950s. When brands merge, the results can propel a brand’s popularity and success to soaring new heights. But be careful — those same collaborations can sometimes leave a brand fighting to save a once-polished reputation from tarnish and disrepair. Over the past 60 years, co-branding has been used to form a multitude of new partnerships. Popular examples of co-branding exist across a variety of marketplaces. Eddie Bauer,famed for quality clothing and adventure gear, paired with Ford Motor Co. to make a series of successful sport utility vehicles. The Girl Scouts of America partnered with Dairy Queen to sell a limited-edition Blizzard, mixing the famous door-to-door cookies in an ice cream shake.
Celebrity partnerships commonly make their mark on the co-branding world. Prominent examples include basketball legend Michael Jordan teaming up with Nike to produce a shoe. Through this co-brand, the Air Jordan became one of the most successful and widely recognized shoes on the market, with over 23 new versions produced since the original design was first sold in 1984.
In a typical co-branding deal, two or more companies come together and strategically merge some of their own products, services, designs, colors or logos to come up with a new marketable product or service. A successful pairing results in automatic credibility in the eyes of the consumer, increasing popularity and sales for both of the partnered brands. A co-branded product usually crosses into a new marketplace for at least one of the brands involved, allowing both brands to reach a new audience. Martha Stewart’s co-brand with Home Depot is a prime example of an expansion of a brand into a new customer arena. Martha Stewart Living is a predominately female-oriented home goods brand, while Home Depot is a classic home improvement store targeted at the “Mr. Fix It” male consumer. With the merger of these two brands, each company has the opportunity to speak to a new market segment. Co-brands range from the intuitive and
expected, like the popular TGI Fridays and Jack Daniel’s menu offerings, to the unique and surprising.
Continuos on http://www.sideman.com/files/Co-Branding%20Article.pdf
By Kelly McCarthy, Esq., and Samantha Von Hoene Sideman & Bancroft
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