Co-branding is when two brands form a partnership with one another to create and market a product that features both the brands logo’s.

The easiest way to understand better is to see examples I know! Well here are some, there is also a lot more out there!

The main idea is to feed of another brands perception and add it to your product. Often Ferrari gets added to mobile phones, watches and laptops because Ferrari is seen as a high-end, luxury, performance (quick) brand.

Apple and Nike match well as the pair are seen at the higher ends of their industries. Apple would not want to co brand with a smaller, cheaper fitness brand like Diadora as this will lower Apples brand power and perception.

Some other less known or recognized co brands are: McDonald’s and Coke in which it isn’t overly obvious but in most McDonald’s ads and marketing efforts the Coke logo is always shown. Sports drinks and sports leagues are always co branding, having sporting heroes court side and post game drinking branded beverages. Plus having packaging containing league logos and athletes can create recognition and emotional attraction to the product.

in most MacDonald’s ads and marketing efforts the Coke logo is always shown

Doing a co brand can mean lower production costs as they can be spread between the two organization as well as an increase in brand perception and brand awareness if your co brand partner is highly regarded and in another market.

Disadvantages of doing a co brand are lower revenues and risk that the co brand may have a negative effect on your own brand if the co brand has bad press.