What is co-branding in marketing?

Co-branding in marketing is defined as a collaborative strategy where two distinct brands work together to create a product or service that leverages the strengths of both brands. This collaboration allows each brand to reach a wider audience and enhances the perception of value through the association with each other. For instance, when a popular snack food brand partners with a well-known beverage brand to create a unique product, both brands benefit from the shared recognition and customer loyalty associated with their names. This strategy not only increases the market appeal of the new offering but also can result in shared marketing costs, making it a mutually advantageous approach.

In contrast, methods such as celebrity endorsements focus solely on an individual brand's promotion rather than a partnership, and promotional strategies that involve discounts and offers do not inherently involve collaboration between brands. Lastly, a branding approach where one brand acquires another does not represent co-branding but rather a different business strategy altogether.