Co-branding Strategy as a New Competitive Weapon

In recent years, co-branding has become a prevalent brand management strategy, which provided an opportunity for enterprises to obtain greater competitive advantage and even achieve a win-win situation. This paper discusses the theory foundation of co-branding from horizontal strategic alliance theory view and cognitive psychology theory view, and then describes the evaluation mechanism of co-branding by considering the pre-existence attitude towards individual brand, familiarity of individual brand and perceived Co-brandfit. In this basis, the merits and risks associated with co-branding are analyzed to help managers make correct decision.