Difference between Co-Branding and Joint Venture

During periods of recession, strategic alliances such as Co-branding and Joint venture they have managed to adopt a prominent role. This is due to the fact that every day many companies unify their potential, in order to improve the recognition of their commercial brand.

The collaboration of these commercial brands, usually face a large number of globalized challenges, to achieve expand in the market and cause an impact to all types of public through the organization in the network and the use of the technology.

Despite the great benefits that these alliances provide for SMEs, companies must strive to achieve their objectives with success in the medium term, since it is not easy in these types of agreements to verify who invests more and who receives the reward correspondent.

For this to be avoided, it is necessary to carry out detailed analyzes of all the agreed aspects, which are related to benefits and cost sharing, in addition to writing the clauses established.

Difference between Co-branding and Joint Venture

Previously this type of alliance was carried out between companies in order to reinforce your brands, from the marketing point of view these actions were called Co-branding.

Large companies used to apply commercial strategies in conjunction with the impacts of social media, thus through advertising They could build trust and credibility from a brand point of view and increase distribution and consumer demand from a brand point of view. product.

At present, with Joint venture From the particular point of view, this type of commercial strategy has managed to be a great advance and an efficient technique for SMEs, professionals and entrepreneurs.

Co-branding, is the grouping of two or more brands that seek to acquire a benefit, through the creation of a new product or other brands, it can also be given in purchase or loyalty cards and through Co-branding in Internet.

Joint venture, is classified into two: the contractual, which establishes various interests without involving the legal nature. In equity, which allows the creation of another company that contains its own legal nature. In these two cases of association there are positive responses.

Objectives of the Co-branding and Joint venture alliances

Within these two business alliances, there is a collaborative approach where both parties benefit, from In this way, various objectives related to digital communication can be set, these objectives are:

Make profitable the alliance that is already within offline

When a company has the offline strategy, it could switch to online communication and thereby increase the alliance relationship.

Improve brand attraction and presence on social media

It is necessary to expand the full reach of social media posts, through the vision promoted by the company.

Build reputation and brand attraction

It is important to bear in mind that the company with which an alliance will be created has a good reputation, since when it is a highly prestigious company, it gives more value to the other. This type of assessment should be sent to the digital system and continue with new alliances that help increase popularity on social networks.

Increase the potential of the company

Encourage different ways of communication, production and sale, achieve a place in the market, increase and stimulate the attraction of the target audience to through social media, embrace the influence of the community that is in the digital environment and achieve the greatest possible expansion, to increase the sales.

Subscription of alliances

Next, the way to sign alliances on a regular basis will be provided:

• Private agreements: These agreements contain all the factors that are directly related to responsibility, obligation, compliance, limitations and contributions, among others.
• Verbal agreement: These types of agreements are carried out in alliances that are less formal.
• Stock exchange: These changes of actions are established when the alliances are strategic or permanent, where there is a globalized objective of a certain project.
• In the form of a society: It is a strategic system that can be applied in joint ventures, where the new company includes its own regulations and administrative processes.

The formation of alliances between companies allows these companies to carry out an evaluation on the possibility of achieving the greatest possible success and profitability.

To have a better understanding of the differentiation of business alliances, you can make the comparison of a company that has less liquidity, but greater intellectual capacity with another with a good economic level, but without capacity technique. By merging, they could complement their different strategies so that both achieve business success.