This idea is about enriching your customer’s experience by tying it up with a product or service extension that comes from another business line or brand. This sort of completes the ‘experience’ when they are using or enjoying your product or service. A popular example is what we see in the fastfood chains where they offer budget meals that comes along with affordably priced softdrinks or juice drinks from a partnering brand. The “co-branding” that happens by combining the fastfood meal together with the drink from another brand completes the customers’ dining experience.
Co-branding works better if you complement your core product with the strength of the core product from another brand. So instead of the customers buying separately from your store and from the other brand’s store, we make it more convenient for the customers to just buy or avail the product in one place. Then both your business and your partnering product supplier also benefits from these extra sales coming from the co-branding.