Co-branding can be a great way to expand your market or take advantage of new markets by gaining access to other company’s loyal customer bases. One major thing to look for in a brand partner is the brand equity: if one brand is more widely recognized or is associated with more value than the other, then it is more likely that the lower-valued brand will “bring down” the other. But it has to make sense: not only should the benefits be logical but there should also be a good fit between the core philosophies and values of the companies. This article highlights some factors to consider when making co-branding decisions: Business Week
The article highlighted three decision factors which can guide companies through choosing a co-branding parter: many companies should co-brand only with other companies that hold similar values, a similar status in their class, and where they can maintain full rights to review and approve decisions. These things will greatly narrow their possibilities, but it will also reduce risk by eliminating many less than ideal options.
This blog highlights some interesting and unexpected co-branding partnerships, such as Ferrari and Acer (above image).