Complementary Branding: Long History of Mutual Benefit

Approximate Read Time: 3 minutes

“You scratch my back, I’ll scratch yours.”

The saying is almost as old as time and has striking and pervasive application in the world of business. Although competition in the marketplace is viewed as one of the main pillars of the capitalist system, forward-thinking companies frequently find that complementary branding with similar organizations can yield massive financial gains.

These targeted partnerships, or “complementary branding” initiatives, have their modern-day roots in the late 19th century. For instance, Andre and Edouard Michelin of Michelin Company fame decided to complement their core products – automobile tires – with the publishing of a guidebook for tourists. Their Michelin Guide was extremely popular, providing information on gas stations, roadside attractions, and best practices for driving; but how did it help the Michelin brothers to grow their business? They realized that a handy, problem-solving guide to driving would encourage more and more consumers to invest in automobiles. And part of that investment would be, of course, the purchase of reliable tires from the Michelin Company.

Automobile tires and tourist guides are what economic experts would refer to as “complements.” One product encourages the use of another product and vice versa. The Michelin brothers leveraged this notion of “complements” by diversifying their products to boost revenues and engage with their customers. However, during the 20th century, this concept began to extend to separate companies which, while not in direct competition with one another, manufactured and sold complementary products. These companies would often partner up for mutual benefit.

Examples of Complementary Branding

  • Betty Crocker brownie mixes come in boxes that provide one or more recipes to the consumer. Of course, for an extra chocolate flavor, you need to have chocolate chips, fudge or syrup on hand; and Betty Crocker recommends Hershey’s as the go-to brand. You can’t get much more complementary than that!
  • In 2012, Red Bull and GoPro partnered up for the Stratos Project, in which Felix Baumgartner climbed to 128,100 feet in a helium balloon, and broke 3 world records with his jump back to Earth (first man to break the speed of sound in freefall; highest freefall, highest manned balloon flight). Red Bull sponsored the event, while GoPro provided a live camera feed for some 9.5 million YouTube viewers over the duration of the jump. While at first glance energy drinks and portable cameras have little, if anything in common, these companies realized that they were both marketing to a certain demographic: young, high-energy adventure seekers. The Stratos event was a smashing success, and this was at least in part due to the values and objectives of these two brands aligning in such an organic and seamless way.
  • Nike and Apple have partnered together to bring consumers Nike+, athletic shoes, and clothing equipped with the latest apps and tracking technology from Apple to help measure exercise performance. Nike enthusiasts were enticed to start using apps from Apple, while devotees to Apple (and fitness) became more interested in purchasing Nike apparel for its convenience.
  • These complementary branding initiatives can also involve private brands. Going back to Nike once again, we find that its partnership with Michael Jordan, who was arguably the greatest basketball player in history and indisputably the biggest basketball brand in the ’90s, led to the release of the famous and highly successful Air Jordans.

Complementary branding has a long history and is often a highly effective method for driving business growth and boosting the bottom line on both sides of the equation. Whether your company is in retail, consulting, manufacturing or any other industry, complementary branding may be an excellent way to “scratch” another company’s back, and have your back scratched in return.

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