Co-branding involves the presentation of multiple brands and products to the public under a single marketing strategy. For instance, a single advertisement may show a person buying a certain brand of shoes and then also using a specific brand of credit card to do so. Likewise, a single brand may be used on separate products, such as athletic shoes and athletic equipment. Both practices have definite advantages and disadvantages.
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One way to create a stronger brand is through the use of reinforcement. The more often a consumer sees a particular brand the more often he has the opportunity to form particular associations related to it. A brand is meant to communicate meaning and identity; by co-branding multiple products a company can create a deeper impression on the public. A wider range of products can do more to reinforce a particular brand image than just one product.
Signaling
Co-branding is a way of signaling various forms of information to consumers. From association with another product, a consumer may be able to infer a similar level of quality. The mystique or glamor that one product has gained for itself in the market can be extended to others through the use of a brand. If a single product is associated with multiple brands, that signals the two companies have invested their good names in its success.
Related Reading: Single Branding Vs. Co-Branding
Value
A brand has real financial value and represents the money that a company has invested in previous marketing campaigns and advertising. By combining multiple products under a single brand, a company is able to take advantage of its previous investment. When businesses put together separate brands, they hope to also combine the value and investments that those