Click here to see original article.
Gilding the lily?
A successful collaboration, or co-branding, is about as good as it ever gets in marketing terms. A strategic combination of different brand equities to generate synergies is the ‘science of alliance.’ Think: Missoni and Target. Apple and Hermès. H&M and Balmain.
When done right, firstly you can generate enormous amounts of brand-centric communications. Secondly, both co-brand partners learn from each other. A softer benefit that’s often overlooked. And thirdly, and often the most impressive impact, is on brand equity. For brands in need of awareness, revitalization or a change in association, a successful collaboration / co-brand strategy can work miracles in a relatively short space of time.
But for a brand marriage to work it should be built on contrasts, not similarities. When co-brands with similar brand equity combine the results are usually disappointing. It’s only when brands with different equities combine that the co-branding impact will prove impressive. Ideally you are looking for a partner that will not only add some new associations to your existing brand equity, but those new associations will confer strategic advantages as a result.
Next your co-brand partner should have a completely different target market from your own. A strong co-brand strategy not only offers synergy in branding terms but also confers similar advantages with respect to customers. And the final piece in creating a successful co-brand strategy relates to authenticity. Both brands must also have a legitimate fit within the product range being offered.
So, in short co-branding is a wonderful tactical adventure in which two brands, drawn from different categories, work together on a product that carries both their names. That synergy ensures that the subsequent product gets a lot of editorial coverage, double the target market to aim at and achieve a price premium.
But with Tiffany & Co. and RIMOWA – two stellar brands in their own right – it feels as if they’re not breaking new ground and simply just gilding the lily. That said, I wouldn’t mind wheeling one through the airport.
Click here to see original LinkedIn post.