Co-Branding in Saudi Arabia

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Today in the market world, there are endless choices of products and services provided for consumers. In this sense, brands face a great challenge by gaining consumer confidence and proving their name in the market.

Many brands have re-examined how to prove themselves and establish their reputation by taking them For the strongest elements of existing products and have them combined with the best complementary brands to provide a new service or commodity.

From this point, this article is a simple and concise definition of the concept of a cobrand or collective brand. The reason is that this concept
has not spread sufficiently to companies or consumers, which is the goal behind this article.

First, it can be simply defined as: a business strategy by which the marketer seeks their brand to partner with another brand to offer a new product or service. Its main objectives are to help brands achieve their goals, hoping that the overlap between the two brands becomes stronger than one commercial brand.

There is an English saying that goes: "If you can’t beat them, join them", which somewhat illustrates the purpose of a cobrand or collective brand. The cobrand is strategic partnerships, since it can become a very effective way to build business, Brand and break into new markets, its importance and thought is that the success of one brand will also bring success to the other brand.

A cobrand is a marketing partnership between at least two different independent brands offering both goods and services. This effort in the cobrand can lead to many benefits that could be a quantum leap for companies involved in the brand. Therefore, joint ventures will benefit more when they come together to deliver a merchandise or service, unlike when companies promote their products or services separately.

When small or medium-sized companies make great efforts to introduce their products and attract consumers, they are forced to invest very high amounts in order to be able to have a reputation and introduce consumers to their products and access to local markets. In order to gain consumer confidence and identify its products, a cobrand solution has come to ease the burden of these companies.

It is well known that a cobrand has many pros and cons & to mention some examples, but not limited to:

* Pros:
1. Shared resources
2. Reduction of costs and thus increased margins
3. Promotion of the brand especially if all brands are famous
4. Risk sharing, so that risks do not bear a single trademark
5. Improved sales and better customer relationships
6. Financing becomes much easier because there are two trademarks

* Cons:
1. If any error is found or the common mark is misdirected, both trademarks shall be affected
2 - The alliance of trademarks may be negative in the mind of the consumer, which may not achieve the desired result
3. Consumers may not focus on the common brand and hence will be the cause of the failure of the brand

* Examples of successful and famous cobrands:
1. BMW & Louis Vuitton
2. Alexander Wang & H & M
3. Dell Computers & Intel Processors
4. Pillsbury Brownies & Nestlé Chocolate
5. British Airways & Citibank

Finally, any company that wants to experiment with a cobrand should look at the pros and cons. Such a decision could be of great benefit to companies in terms of increasing their sources of income and profitability, enhancing consumer reputation, increasing brand awareness and reducing costs. However, on the contrary if the cobrand did not succeed, it will negatively affect them, so it should be used wisely and carefully so as not to weaken the brand to achieve the desired results.

AUTHOR: Dana Almutairi

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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

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