Cobranding

Two cows on a ranch getting um...hot name tags at the same time. Or, let's get into this by asking a question: what do you get when two well-known consumer product companies work together for marketing and advertising purposes? Cobranding!

The goal of these partnerships is to drive demand higher for both products. Consumers for each will find out about the other. Revenue for both go up.

Usually both brands are already very recognizable in the marketplace and it’s perceived (at least by the companies' marketing departments) as a win-win for both firms. For example, an ice cream company might cobrand with a chocolate sauce producer, or a car company could partner with a well-known sound system manufacturer. It’s a great way for a company to break into new markets, save on advertising expenses, and attract new customers who might not have purchased from them otherwise.

One good example is when Pottery Barn home furnishings cobranded with Sherwin-Williams paint in 2013. Together they created an new line of paints and then added a special section on the Pottery Barn website to help customers select paint colors to go along with their new furniture. The website was then supplemented by blog posts and other ideas for painting and decorating.