Joining forces with another brand can do wonderful things for a company; increased visibility, an expanded audience, and fresh ideas are just a few of the reasons businesses seek to cobrand. Cobranding is pervasive in the retail world, and companies have learned to take advantage of others’ successes while offering up their own reputable image. There are a variety of company duos that have made a business partnership mutually beneficial, and I’ll discuss the ways in which they made this fusion work for them individually.
- NJOY and Caesar’s Entertainment
Caesar’s Entertainment, the largest gaming company in the United States, boasts 36 casino properties across the nation. NJOY is the largest, independent e-cigarette and vaping company in the U.S. Smoking and gambling seem to go hand in hand, so these two companies capitalized on a similar target market. Many of those who utilize casinos tend to enjoy smoking, and NJOY’s e-cigarettes are great substitutes for those looking to get a feel that closely resembles traditional cigarettes.
NJOY.com offers a variety of vaping devices that are wonderful alternatives to traditional tobacco products; they produce no smoke, don’t burn, and are reusable. This serves Caesar’s well: less cleanup, less air pollution, and customers who can still partake in their favorite habit while cutting down on health consequences. Caesar’s Entertainment even offers a vaping bar in which customers can peruse a variety of vape flavors, making this partnership lucrative for both parties.
- Uber and Spotify
Both of these brands are innovators in their respective fields. Uber is a wildly successful taxi alternative service and Spotify offers music streaming. However, both are in competitive fields. By joining forces, each gives the other an edge on the competition. As a result of the two companies’ recent partnership, you can now get into a hired car and be welcomed by your very own playlist. This grants Uber an exclusive feature above other transportation offerings, and inclines Spotify users to upgrade their accounts to premium and payment-based services, while putting them a step ahead of competing streaming services.
- Girl Scouts and Dairy Queen
The immensely popular Girl Scouts owe much of their success to the infrequency at which their products are available, and Dairy Queen found a way to profit from this. DQ joined up with the organization to form a special menu line of ice cream Blizzard treats that contain pieces of some of the Girl Scouts’ most popular cookie offerings. This simple addition attracted the cookie lovers who may have never considered Dairy Queen treats before, and the Girls Scouts organization was able to further profit off of a product that had already experienced widespread success.
- Apple and Nike
The partnership between juggernauts Apple and Nike worked because the relationship allowed each to tap into the other company’s market. Nike developed a line of shoes specifically for Apple, with slots that would fit the latter company’s iPod device. Those who were already Apple fans were enticed to try Nike’s offering, and Nike-loving athletes were persuaded to purchase Apple products. Each company was able to expand their sales to consumers they may not have drawn in before. Two powerful companies working together to create a never-before-produced product was bound to be a success.
- Target and Lilly Pulitzer
Target has a variety of designer collaborations under its belt; from Isaac Mizrahi to Alexander Wang, the company has seen over a decade of wildly successful clothing and accessories lines come through its doors. Their collaboration with Lilly Pulitzer in 2014 saw expansive lines of eager shoppers circling the buildings, sold-out shelves, and great profits. The 250-piece collection featured everything from rompers to pool chairs decked out in the preppy Pulitzer patterns. By offering exclusive collections based on brands that are usually sold at much higher prices, Target can draw in more customers who are seeking unique items. It benefits brands like Lilly Pulitzer by creating an air of exclusivity; and a desire for Target customers to eventually be able to buy the high-end versions of their favorite items.
No matter the size of your business, partnerships are essential. Strategic cobranding partnerships can be found in virtually every facet of consumer goods; from cosmetics to food, technology to charity, companies are increasingly in favor of joining forces with other brands to further sales and purposes. This tactic can be extremely lucrative for both businesses involved, and with proper selection of a partner, businesses can look to profit immensely.