My Bonnie Lass, a cosmetics company, associates with a perfume brand called Lonalove to launch a face powder scented with one of Lonalove's signature perfumes. This new product becomes immensely popular among consumers, and both companies benefit from it. This scenario is an example of:

Question

Business

Stella

7 July, 23:55

My Bonnie Lass, a cosmetics company, associates with a perfume brand called Lonalove to launch a face powder scented with one of Lonalove's signature perfumes. This new product becomes immensely popular among consumers, and both companies benefit from it. This scenario is an example of:

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Answers (1)

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Jake Mcguire · Answer 1

Cobranding

Explanation:

Co-branding is a marketing strategy in which at least two companies come together to use more than one brand name on a product to the benefit of both companies. Or simply put, cobranding is an alliance of brands names on a product or service.

Cobranding can be in different forms. It could be same comapnay cobranding, national to local cobranding, etc.

Co-branding is like any other marketing strategy has its advantages and disadvantages. The advantages include risk-sharing by both companies, increased sales, increase customer confidence in product, etc.

In the case of the question, both My Bonnie Lass and Lonalove would enjoy the benefitis of the joint product as it has become popular among customers, thus giving credence to one of the advantages stated above thats says that Cobranding increases sales os product as wel as increase customer confidence.

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