Cobranding is the coming together of 2 or more brands in a partnership to create a product or to have a common promotional event. E.g. Oyo Hotels partnering with Unilever for hygiene post Covid19.

Advantages –

Increasing Customer Bases

Creating New Audiences

Creating Unique Experiences. For Example Nike+Ipod Sports Kit.

Disadvantages –

Cross Contamination Association of Nike with Lance Armstrong’s Livestrong brand suddenly jeopardized due to doping allegations.

Too many co-branding alliances can result in brand dilution

Pepsi Co-owned Lay’s has partnered with brands like Cadbury, KFC, Urban Company, Zomato, Spotify for special co-branded packs with a custom gratitude message thanking the brand and the unsung heroes. The name of the campaign is“HeartWork”.