When two companies agree to create a new product or alter an existing product in order to provide additional value to the customer. Often the product is an amalgamation of both products aiming at mutual target audiences.
Navigate to this website to hire a sponsorship marketing agency for your business.
For brands partaking in joint product partnerships, there are many factors to consider. Bearing in mind the huge impact on internal product departments, they are presented with three main collaboration choices:
- Powered by – a partner brand supplying their services to benefit a new or existing product. Often software providers will provide their technologies for a product. Mobile phones powered by a technology provider such as Google or Microsoft is a good example.
- White label – many successful technologies also offer white label solutions. This means selling off their services or leasing their technology for a partner brand. The partner brand then utilises it under its own brand name.
- Product merger – a merger is where both brands have decided to amalgamate their products together. This too comes in various formats, from full to partial mergers depending on the product line.
These alliances can be very interesting for an organisation’s product portfolio, the result is a fresh line of innovative product solutions. With the breakthrough of digital technologies over the past decade we are now seeing a far greater increase in such partnerships. There are four specific forms that have emerged: