One would think that if a company is profiting enough, it would not need to partner up with any other company. However, big companies like Google, Mercedes Benz, Samsung, Apple and many others are forming strategic partnership with other companies that are entirely not in their industry; this is called “Co-branding”. Co-branding is a marketing strategy formed between two or more companies to come up with a new good or a service that is a mix of both.
Co-branding can allow the brands involved to boost awareness where each brand’s customers become aware of the other brand. It can also help break into new markets if the brands are from different industries. The partnership should ultimately be based on win-win alliance and all customers need to find value in the new product/service.
Some examples for these collaborations are:
Google & Levi’s
Levi’s recently teamed up with Google to enter the wearable technology market. Google and Levi’s created an interactive denim jacket that helps cyclists not use their phones while riding by providing means to use their phone’s mobile applications easily by only tapping on their sleeves.
By tapping or swiping on the jackets, cyclists can learn the directions and use maps while riding, they can search for nearby places, play music on the music player, and even pick up or dismiss phone calls.
So instead of reaching out for their phones and having to open each mobile application to go somewhere or play some music while riding, this jacket makes it all easier.
Watch video here: https://www.youtube.com/watch?v=yJ-lcdMfziw
Nike & Apple
Nike and Apple have been working together ever since iPods came to the world. It first started by iPods bringing music to Nike customers while working out. Now the partnership has evolved by combining technology with fitness wear to bring athletes the best performance trackers. Apple has helped customers track their workout performance by installing tracking transmitters into shoes, arm bands, head bands, watches and more.
This has allowed those technology gears to be not only “technological”, but also fashionable and can be technically sold to anyone and everyone, not only tech geeks.
This partnership has helped Nike provide unique value to its customers that other brands are much behind with, and allowed Apple to enter a new industry which is the wearable technology.
It has also helped customers combine a bunch of mobile applications into one. Instead of playing a music application, opening a fitness tracking application and getting all distracted by your phone and all the other mobile applications, you can just buy this gadget.
Uber & Spotify
Uber and Spotify have partnered up as well to provide the ultimate experience for Uber customers and help both mobile applications earn more users. Both applications have very different objectives, but ultimately the same goal: getting more users.
This partnership allowed riders in Uber become the DJ of their trip using the Spotify application. Users can choose from their playlist whatever they want to listen to in their ride. This smart move may actually drive users to use those two specific apps over other competitors just to get this mix in their rides and listen to their favorite music during the ride.
Watch video here: https://www.youtube.com/watch?v=cNUc3WD2Y-U