Co-branding occurs when two established brand names of different companies are used on the same product. Co-branding offers many advantages. Because each brand dominates in a different category, the combined brands create broader consumer appeal and greater brand equity. For example, high-end shaving products brand The Art of Shaving partnered with mainstream marketer Gillette to create the Fusion Chrome Collection, featuring a $150 power razor billed as “the world’s most technologically advanced razor.” Through the partnership, The Art of Shaving gains access to Gillette’s broader market; Gillette, in turn, adds high-end luster to its shaving products line.
Definition 2.
Co-branding— also called dual branding or brand building— two or more well— known brands are combined into a joint product or marketed together in some fashion.
The main advantage of co-branding is that a product can be convincingly positioned by virtue of the multiple brands. Co-branding can generate greater sales from existing market and often opportunities for new consumers and channels. It can also reduce the cost of product introduction, because it combines two well-known images and speeds adoption. And co-branding may be a valuable means to learn about consumers and how other companies approach them.