Companies are always on the lookout for new ways to strengthen their brands. Whether your business is a global juggernaut or a local storefront, expansion has no real downside. Brand collaborations are just one of many ways businesses can give themselves a boost.
Sometimes, companies with different consumer bases can team up to help one another. When it makes sense, like with Starbucks and Spotify, the long-term results can be well worth the effort.
Brand Collaboration That Works
The best brand collaborations are the ones that come naturally.
When GoPro and Red Bull teamed up in 2016, GoPro provided point-of-view imaging technology to capture Red Bull’s extreme events. In 2019, arch-rivals McDonald’s and Burger King teamed up for “A Day Without A Whopper.” For one day in Argentina and other countries, Burger Kings removed the Whopper from their menu. This was done in an effort to encourage consumers to purchase a Big Mac from McDonald’s instead. That day, all Big Mac proceeds went to a cancer charity.
Though there was some confusion about the stunt, the end result of donations was undeniable. Plus, they gained cross-market promotion for both brands.
In most cases, companies that collaborate benefit from their promotional efforts. The “two heads are better than one” adage applies in business just as well as in our personal lives. The power of brand collaboration is especially evident in the Starbucks/Spotify example.
Starbucks and Spotify Delve Into Brand Partnerships
Aside from being known chiefly for its coffee, Starbucks has always offered customers the experience of listening to carefully curated music in their shops. For many years, the music played in Starbucks stores was sold at the counter in the form of CDs. But when CDs went the way of the cassette tape, 8-track, and vinyl, so too did Starbucks’ tangible CDs vanish from their stores. Whereas some businesses might have shrugged their shoulders at the loss of the additional revenue stream, Starbucks saw the music industry’s advancement as an opportunity.
Starbucks teamed up with Spotify in 2015 to offer decades’ worth of playlists to Spotify users. Additionally, Starbucks employees were offered Spotify Premium subscriptions. The cross penetration in markets that would otherwise not have been realized was tapped. The mutually-benefitting companies deemed the collaboration a “First-of-Its-Kind Music Ecosystem.” And indeed it was more than that.
As one of the best brand collaborations to date, this clever marketing strategy boosted the reputation and name recognition of both businesses.
There Are No Limits to Brand Collaborations
When considering your own business and how you might partner up with another, are there areas in which your company lacks?
The example of Mcdonald’s teaming with Burger King was one that is as unlikely as it was unnecessary. The two leading fast food chains are so alike in their design and product. If not for the altruistic goal of charity, the collaboration likely wouldn’t have happened.
But, where Red Bull and GoPro saw an opportunity in their vastly different products, they jumped at the chance to work together. So too did Spotify and Starbucks. But this wasn’t the first time Spotify reached out to collaborate with another major company.
In 2014, Spotify joined forces with Uber to create the “Your Ride. Your Music” partnership. In the collaboration, Uber riders could listen to their Spotify music through the car’s speakers. It’s a simple thing, and it might seem like an obvious innovation. But someone had to initially come up with the idea. When those ideas come to light, mutual benefits abound.
Collaborating Doesn’t Have to Be Hard
Does the idea of collaborating with either like-minded or polar-opposite companies sound exciting? Are you looking for new and interesting ways to approach marketing? You don’t have to buy out big businesses to get ahead. Contact us today to begin exploring the many ways we can help expand your business.