December 8, 2019

When big brands came together to create magic…….

It’s a cut-throat competition in today’s business world. And making your product stand out in a highly competitive market is very tough for a business. You got to have a product that gets the liking of both the classes and the masses. Some companies score high in this parameter. Some don’t. So, for those who don’t have a sizeable audience base can use the option of collaborating with fellow companies to garner a bigger audience size and larger profit.

Companies teaming up and collaborating with another company for a commercial project or social campaign can effectively double the brand exposure and reap dividends for both businesses.

Successful brand collaboration depends on both brands being able to benefit from the existing market of the other, or from gaps in the market that can be filled, through a collaborative relationship that competitors will find hard to replicate. Think Nike and Apple.

Here are some instances when the big organizations came together and collaborated on a product/ service:

Starbucks & Spotify: Starbucks scaled up a premium coffee shop experience into a massive global brand, using music to create an ambience around its coffee. Spotify, a music streaming platform, has powered almost 25 billion hours of listening around the world. Starbucks and Spotify forged an innovative co-branding partnership to build a “music ecosystem”, offering artists greater access to Starbucks consumers and giving Starbuck access to Spotify’s expansive discography. Through the initiative, Starbucks employees get a Spotify premium subscription, with which they can curate playlists (that patrons can access through the Starbucks Mobile App) to play throughout the day in the shop. This music ecosystem is designed to expand the coffeehouse environment that Starbucks is known for while giving artists greater exposure to Starbucks customers.

Apple & MasterCard: Sometimes, co-branding partnerships aren’t just cool projects between two companies — they actually have practical value when the companies work together. When Apple released the Apple Pay app, the brand effectively changed how people perform transactions. This app allows people to store their credit or debit card data on their phone, so they can use them without physically having the card with them. But in order for this app to succeed, it needs credit card companies to integrate with this technology. By the same token, credit card companies also face more competition themselves if they aren’t compatible with the latest consumer purchasing tool. MasterCard became the first credit card company to allow its users to store their credit and debit cards on Apple Pay. MasterCard not only showed support of a major consumer tech developer in this partnership — it evolved along with its own customers in how they choose to make purchases at the counter.

Uber & Spotify: Music-streaming app Spotify partnered with ride-hailing app Uber to create “a soundtrack for your ride.” This is a great example of a co-branding partnership between two very different products with very similar goals — to earn more users. Here’s how it works: When riders are waiting for an Uber ride, they’re prompted to connect with Spotify and become the DJ of their trip. Users can choose from their own playlists to determine what they’ll listen to. A good move to retain its target audience.

 

Let’s take a break here. There are hundreds of companies that collaborate on a product/ service. But does anybody here know what the motive is behind the move? What are the reasons behind the decision of an alliance taken by the bigwig’s sittings behind these corporations? Here’s the answer.

When two brands come together with an objective of brand collaboration, the main objective is to share the expertise and offer the unique and innovative product to the customers that will help them gain the competitive edge and advantage in the market increasing the market share by manifolds. Both the brands that are coming together enjoy a huge base of customers and followers who are loyal to the brand and its various offerings.

Let’s continue with the blockbuster collaborations that yielded some great profits to the companies.

Apple & YouTube: Since its inception, Apple’s event is exclusive only to its user base (users with Apple devices). But for the first time, Apple streamed its #iPhone11 event on YouTube, making it accessible to users across the globe. Previously, Apple has always live-streamed its launches via the Keynote app on Apple devices. Last year, Apple made an exception for the first time when it broadcasted its iPhone XS launch live on Twitter. Apple usually uploads its launch event shows on its YouTube channels after the broadcast is over. But this is for the first time there will be a live broadcast on YouTube.

Domino’s & Tinder: In 2014, Domino’s matched with Tinder on what is surely a popular day for both parties: February 14th. Tinder grabbed a slice of the action by allowing users to swipe right on a range of special deals and freebies offered in pizza-form. Domino’s promoted the deal on various social media channels through a series of ‘cheesy’ one-liners. Both brands delivered value to a sector of customers that are usually alienated on Valentine’s Day: single people. The results could be measured by interaction and reached some 230,000 users.

As discussed earlier, in today’s dynamic markets and the ever-changing business scenarios, it is very important for the brands to survive and thrive in the market retaining the loyal customers by offering the products that are unique and innovative amidst the tough competition. And the business strategy of Brand Collaboration is one of the best and go-to tool today.