What is complementary branding, exactly? Starbucks and Target. Nike’s Apple Watch. Baskin-Robbins and Dunkin Doughnuts. Betty Crocker’s Hershey brownies.
These are a few examples of what successful complementary branding looks like. Business matches made in sweet, profitable heaven.
According to Hubspot, the masterminds behind inbound marketing, “Co-branding is a strategic marketing and advertising partnership between two brands wherein the success of one brand brings success to its partner brand, too. Co-branding can be an effective way to build business, boost awareness, and break into new markets, and for a partnership to truly work, it has to be a win-win for all players in the game.”
Complementary branding, the next logical step to co-branding, is when two brands with similar interests join forces beyond marketing or advertising (though it may include these elements) to add value to their shared customers, be it by co-locating their brands within a retail space (Target and Starbucks), or incorporating one product into another (Betty Crocker and Hershey).
Put simply, complementary branding is placing a brand within a brand to offer additional value to costumers. The main brand increases its revenue without investment. The complementary brand gains exposure and increases sales by benefiting from the main brand’s established reputation – without losing its identity.
Complementary branding is playing for the win-win.
Why are brands moving towards complementary branding?
The question should be: why aren’t they? According to Topper’s Craft Creamery CEO, Greg Sausaman, a complementary brand can push top-line sales up 10 to 20 percent and reduces the risk for the operator.
The former President and CEO of McDonald’s USA , Ed Rensi, says it best “Don’t spend time and money reinventing the wheel.” Looking for ways to grow profit during slow sales times is business strategy 101. Analyzing the times of days that sales struggle and turning those down times into opportunity is every business professional holy grail. It’s what promotions and big corner offices are made of.
How you go about increasing sales opportunities is a whole different ball game. A risky game at that. New product development or jumping into new markets is costly and time-consuming. Why do it if there’s already someone owning that space – and doing it well?
Co-branding is here to stay
There’s not a ton of information on complementary branding – yet. Those driven by profitable business cases and success stories must rely on the few, high-profile ventures that are cited in every article on co-branding.
This is exactly where the opportunity lies: Complementary branding is not yet popularized. It’s the next shift for business innovators looking to build slow day-part sales periods simply and profitably.
Jumping into the complementary branding space can be game-changing for your business. And we have the numbers to prove it.
To discuss complementary branding opportunities to increase top-line sales, shoot me a line at [email protected]