The Power of Co-Branding

Let’s say, theoretically, you’re in the market for a new truck. In this example, you're interested in a Dodge Ram because that Cummins Turbo Diesel engine caught your eye. What you’ve just experienced is co-branding. Cummins is known for their durability and torque. Paired with the award-winning Ram brand, the two companies form an image of a tough, capable truck. Co-branding happens when two or more brands join forces to create a product or service that allows each brand to benefit from the other’s reputation and audience. It can help companies target different customer bases and gain a greater market share, but it’s not without its hazards, so let’s take a closer look.

The basics of a brand:

To be clear, let’s revisit some of the basics. In our previous articles, Groundwork examined the importance of your brand and aspects related to it.

1. Brand – The total of all the feelings and associations people think of when they come across your brand. Naturally, you want people to think positively when they see your brand.
2. Brand differentiation – This sets your brand apart from others. You don’t want potential customers to feel like your brand is no different than the next one. There should be something special about your brand that customers believe no other brand has.
3. Brand awareness – Once you’ve defined your brand and its uniqueness, it’s important to make people aware of it and why they should buy it. After all, as brand awareness increases, so does brand preference.¹  

Co-branding boosts

You may be thinking, “Why would I want to co-brand? What’s in it for me?” Several benefits, in fact. Let’s look at a few:

• Further exposure to new audiences – When Brand A partners with Brand B, Brand A can take advantage of the customer base and reputation that already exists with Brand B. The pairing of Doritos and Taco Bell created the Doritos Locos Tacos, a huge success for both companies. Doritos, associated with the popular fast-food chain, was able to reach an audience beyond shoppers picking up a bag at the grocery, from a vending machine or at the convenience store. Taco Bell, in turn, created buzz and attracted more people to its latest menu options.
• Boost reputation and credibility – When one respected brand teams up with another, customers see the final product as being of higher value, which increases both brands’ reputations. For example, Bose collaborated with Chevrolet for their 2025 Corvette lineup, which comes factoryequipped with a genuine Bose sound system. The Corvette brand is associated with high performance, and Bose is known for premium audio quality, so consumers like the final pairing.
• Brand differentiation – Which would you prefer, a chocolate chip cookie, or a chocolate chip cookie with genuine Hershey’s chocolate? Pillsbury and Hershey’s have joined forces so that the baking giant offers a line of ready-to-bake cookies featuring chips from a leading name in chocolate. Hershey’s branding helps Pillsbury stand out in crowded refrigerated aisles, attracting impulse buyers and chocolate lovers. Being associated with Pillsbury reinforces Hershey’s image as a versatile ingredient, not just a candy – boosting relevance in home baking and family moments.

Co-branding for strength and value

Proper co-branding can reinforce your brand, further set you apart from the competition and add increased value for your customers. Think of this in terms of something as simple as your branded swag. A Nike logo on one of your branded golf shirts has a different impression than a Port Authority logo. These are the sorts of feelings you should be looking for to inspire your co-branding. What other brands can help enhance and elevate yours? For example, seed brands that want to be perceived as innovative and on the front edge of technology may co-brand with new or innovative seed traits. In 2017 and 2018, many licensee seed companies started promoting future availability of Enlist E3® soybeans ahead of the 2019 launch. This likely gave them an edge in the market, as demand for the technology soon skyrocketed. More recently, the same has happened with PowerCore® Enlist® corn, one of the fastest-growing above-ground traits. It’s important to ensure your seed company brand remains visible and dominant in co-branding situations. If the other brand dominates, or your brand isn’t visible, that’s a serious red flag. Everyone’s resources are limited in some way, and there’s no point in spending yours promoting someone else’s brand if what you get in return isn’t equitable.

Your brand is the foundation of your business. It took a long time to build it, but it can be lost far more quickly. Proper co-branding can help expand your business without weakening your brand or the customer connections you’ve worked hard to build and maintain.

¹ Mucahy, S., “Business-to-Business Advertising When Your Market is in a Recession or Expansion,” Newton, MA: Cahners Business Information, 2001.

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