Co-branding is a marketing strategy in which two companies form a partnership to achieve greater brand recognition, reach larger markets, and increase consumer spending. The co-branding of credit cards is an effective way for businesses to achieve these goals.
Appearance
- Co-branded credit cards bear the design of the partner company as the background of the card, while the card issuer's logo remains in the corner. Some examples of this are the Shell Gasoline MasterCard and the Jet Airways Visa.
Benefits to Businesses
- Co-branding is successful when both members of the partnership bring value to the new product. Thorough market research is necessary to determine what products will catch on with consumers, but if co-branding is done properly, both partners will gain business. For example, MasterCard will gain loyal Shell customers and vice versa.
Business Risks
- Co-branding is widely regarded as an easy, attractive strategy for a business to pursue to increase profits. The risk in this strategy is that a company could enact an ineffective partnership, which would result in wasted time and resources. For example, while supermarket co-branding with credit cards is a popular in Europe, the idea has thus far failed to catch on in the U.S.
Consumer Benefits
- Co-branded credit cards offer consumers a range of advantages related to the products or services of the business partner. For example, the holder of a Jet Airways Visa Card earns mileage points by using the card, which results in free airline tickets or upgrades.
Consumer Drawbacks
- There are no major drawbacks to the consumer in holding a co-branded credit card versus a standard card, however, some co-branded cards, such as the Shell Gasoline MasterCard are subject to annual fees.
Offshore Pro Group
Informative read describing the advantages of Co-Branding in Credit Cards. Co- Branding is also very beneficial in Business too because in Co-Branding both partners will gain Business. Co-Branding is also helpful in increasing the profits. Thanks for sharing such useful information.
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Debit Card Account
A professionally crafted logo designe example is one of the greatest blessings for a company; whether it is big or small. It gives them an identity of their own and makes them different from others.
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