How Does Co-Branding Work to Improve Sales

Image: Oreo.com

Corporate challenge: A company enters a new market space with a better quality product at a lower price.  The market is saturated, and the new product is not selling, despite its higher quality and lower price.

Ironbound solution:  A simple way to increase customers and grow popularity for a product is to co-brand with a successful and well-known  brand.

Ironbound action: Co-branding can be a form of brand extension that grows market share for all brands involved (as shown by Reese's and Oreo).  The optimal co-brand collaboration should be with a brand that will get your product into the hands of your target customers who are most likely to repurchase the product and become loyal to your brand.  Most successful companies are open and willing to co-brand, to keep their own product relevant, dynamic, and trendy.