Co-branding

Co-branding (also co-branding or co-branding ) is the collaboration between established brands to better market their products. It is about a mutual image transfer of quality promises. A typical application is credit cards , where the narrowly limited number of providers enables a variety of cards through cooperation with "affinity partners".

Conceptual classification

In a very broad sense , the term “co-branding” could be understood as any common branding policy . However, it makes more sense to define co-branding more narrowly:

"Co-branding in the narrower sense is the systematic marking a performance by at least two brands, with and continue to have an independent third party they both perceived." .

In particular, the following characteristics must be met for co-branding:

a long-term connection of at least two images,
the brands involved are independent, isolated brands both before and after co-branding,
a common branding policy, d. H. this brand policy option is intended by all sides,
a common service or a common product,
an externally perceptible cooperation.

In contrast to product placement , i.e. the pure showing of brands or products in return for monetary payments, or the opposite, the licensing of brands, i. H. the use of well-known brands for advertising effects against payment of a license fee, co-branding must be based on a joint long-term service. Also for cross-promotion co-branding is to be deferred, since only brands are advertised each other, but also lacks the long-term joint performance.

Conceptual success factors of co-branding

The success factors of co-branding include in particular:

Brand fit: The brands involved fit together.
Product fit: The new service is similar to the previous services; the customers are familiar with the brands involved.
Complementarity: The brands involved complement each other.
Brand strength: Both brands have sufficient brand knowledge.

Opportunities for co-branding in the music market

Cross-sector co-branding is possible between an artist and a branded article manufacturer, as well as a recording company and a branded article manufacturer, with the artist clearly representing the stronger “brand”.

There are numerous examples of co-branding between artists and branded goods manufacturers. Interestingly, providers of music-related services or products such as B. Manufacturers of instruments, studio equipment and accessories, rarely appearing as co-branding partners. One of the best-known examples of co-branding between artists and branded companies is the cooperation between Volkswagen AG and Genesis , Pink Floyd , Bon Jovi and the Rolling Stones . In these alliances, VW not only sponsored the tours of the respective bands , but also presented limited-edition special models of various Golf models . These were equipped with selected safety and environmental technology and carried the logo of the respective band on the bonnet, the rear of the vehicle and the rear side sections as well as in the interior, e.g. B. on the radio, the dashboard and other interior fittings. The bands and their designers were actively involved in the drafting and design of these models. In the sense of a “real” co-branding, new models of already established brands were created here. These partnerships strengthened the level of awareness of the individual brands (the respective artists and the Golf brand).

Another example is the collaboration of Pepsi -Cola with various artists. PepsiCo tried with large-scale sponsorship activities as well as a star box collection, u. a. with Britney Spears and Michael Jackson to reach their target audience . The main competitor Coca-Cola later took up the idea of special star cans and entered into co-branding alliances, including a. with Bon Jovi, Sting , Peter Maffay , Chris Rea and the Scorpions .

The co-branding between phonogram companies and manufacturers of branded goods is less widely used in practice, since - as already mentioned above - the phonogram brand is not perceived as strong enough by consumers. Above all, the major companies with their wide range of music are not perceived as brands at all. In Germany, smaller independent labels have the chance to be noticed with their own profile (something the 3p label , which represents an independent direction and appears as such in the media). An example of successful co-branding between a sound carrier company and a branded item was the cooperation between BMG (now SonyBMG) and VISA Corp. in the USA. Here a BMG - VISA card was issued. Cardholders received points for purchases made with the card at the BMG Music Service, depending on the turnover, which can then be used for CDs, videos, concert tickets, etc. can be redeemed.

Chances of success in personal branding

Co-branding does not always have to lead to win-win situations ; the reasons for this could be the incongruity between the brands involved or the dominance of one of the components. One of the keys to successful co-branding is therefore identifying the right partner. The following are important:

Personality / charisma / image
Awareness and popularity in the target group
Successes and achievements
Assessment by the target group
Willingness to cooperate

The criterion of willingness to cooperate is extremely important, because many artists or other well-known personalities resist being used by the industry as "flagship". Cooperation with brand manufacturers should therefore only be planned if the relevant product manager is clear about the interests of the artist. However, if both partners are willing to cooperate, co-branding is a powerful marketing tool with many advantages for all partners involved.

source

↑ Baumgarth, Carsten (2000). Fit and arrangement effects in co-branding - results of a laboratory experiment. Working paper, victories.
↑ ^a ^b Kabbani, Dana (2001). The use of co-branding as a cooperative brand strategy in the music market. Unpublished diploma thesis from February 12, 2001, Faculty of Economics at the Humboldt University in Berlin.
^ Baumgarth, Carsten / Kilian, Karsten (2004): Consonance in the brand duet. In: Frankfurter Allgemeine Zeitung, June 30, p. B3.

[Baumgarth-1] Baumgarth, Carsten (2000). Fit and arrangement effects in co-branding - results of a laboratory experiment. Working paper, victories.

[Kabbani-2] Kabbani, Dana (2001). The use of co-branding as a cooperative brand strategy in the music market. Unpublished diploma thesis from February 12, 2001, Faculty of Economics at the Humboldt University in Berlin.

[3] Baumgarth, Carsten / Kilian, Karsten (2004): Consonance in the brand duet. In: Frankfurter Allgemeine Zeitung, June 30, p. B3.