Why Brand Collaborations Should Be a Part of Your Business Growth Strategy
Brand collaborations have gained popularity in recent years as brands within and between different industries pair up to offer new, fun experiences to their audiences. Especially in this age of social media, brands utilize collaborations as part of their marketing and advertising strategy to find success for both brands in the partnership.
Knowing the basics of branding makes us understand better the purpose of co-branding, which is to combine and leverage the strength, awareness, and positive associations of multiple brands. With brand collaborations now a common language, we will highlight five reasons they should be a major part of your business growth strategy.
Reach new markets
Each brand has its own set of customers. Collaborations offer brands access to a different group of customers. A co-branded product increases exposure for your brand to the target audience of your co-branding partner due to audience overlap. It is offering a cross-over of loyal customers of one brand to try the new product, even if they would never have considered the second brand on its own. Collaborations leverage each consumer segment’s strengths and build reach for new markets. A successful and famous brand collaboration between Louis Vuitton (LV) and Supreme brought a change in perception for both brands. Supreme elevated its prestige, and Louis Vuitton shed its “old-fashioned” image. This strategy has led the brands to enter new markets.
Utilize One Brand’s Strength to Overcome Another’s Weakness
A good and well-planned collaboration between brands has the potential for each brand to overcome one of its weaknesses by leveraging the other’s strengths. For example, suppose one brand is known for technical know-how but lacks a sense of fun or creativity, and another brand has oodles of creativity but has tech limitations. In that case, collaboration can work to overcome the negatives for each brand and allow the other’s strength to transfer across. Collaboration can be particularly handy for brands who’ve been through rebranding.
A new experience
Brand collaborations expose consumers of both brands to new and fresh experiences, which creates positive buzz and reinvigorates brands. It allows brands to showcase their trendiness and relevance while resonating with modern consumers. Collaboration can also signal to consumers where the brand is heading in the future.
Collaborations are fun and effective strategies for businesses to increase their brand awareness and boost their reputation and image. A brand collaboration needs to be logical and strategic for the brands involved. Both brands or businesses need to have shared values or similarities to their brand image or identity; otherwise, they would risk eroding brand integrity. When considering collaboration opportunities, it is important to understand what benefit the partnership brings to your brand and ensure it aligns with your own goals and campaigns.
Nevertheless, interesting collaborations liven up the marketplace while offering consumers novel ways to experience a familiar brand. If you are a brand looking to get in front of a new consumer base, collaborations may be an option to consider.