How brand cross promotion can overcome limitations in saturated markets

In recent years, we have witnessed the rise of creative collaborations between brands from various industries resulting in unique and innovative products.

Indomie X Chitato Lite and KFC X Dear Me Beauty are two recent examples in Indonesia along with brand collaborations from the skincare brand Dermies. This approach, known as cross promotion or co-branding, has now become a popular strategy.

This is where two or more brands collaborate to create and promote a product or service. The goal is to reach a wider audience by utilising the strengths and customer base of each brand.

It's not just about creating new products, but also about strengthening your position in the market by creating greater awareness.

Indomie X Chitato instant noodle flavoured chips

There are several reasons why brands are increasingly interested in pursuing this strategy. Firstly, in many industries, intense competition and a large number of brands operating in the same category often create noise. To overcome this, brands are looking for opportunities in other categories.

Secondly, smaller brands can strengthen their image by associating with better known brands.

Take the Dear Me Beauty collaboration with KFC, for example. This collaboration aims to introduce beauty products to the existing KFC audience, as pointed out by MarkPlus CEO Iwan Setiawan on  MarketeersTV.

Thirdly, brand collaborations ca n expand the target market. When the market in one category is saturated, brands look to reach new audiences.

Fourthly, the strategy shows novelty and innovation. "When products in certain categories begin to be commodified, innovation becomes key," Setiawan says.

However, to achieve optimal success, the strategy included in pull marketing must be balanced with push marketing as well.

Brands need to be proactive in promoting products or services to consumers. The combination of these two approaches creates powerful synergy, effectively driving consumer awareness, desire and action.

One important element in a cross promotion strategy is brand reputation. A Visual Objects survey in 2021 found that 61% of consumers tend to stay away from products with a negative reputation.

This shows the importance of choosing collaboration partners with aligned values, reputations, and audiences. Mistakes in choosing a brand can negatively impact public perception, so it is important to make a careful choice.

Undertaking comprehensive research is a cornerstone of successful cross-promotion campaigns. Without it, campaigns risk irrelevance and can highlight brand incompatibility, diminishing their impact.

Also, communication between brands is essential. Communication can lead to clarity and suboptimal execution.

On the other hand, brands must also be careful not to overpromise. This often creates a mismatch between consumer expectations and the products offered, which can ultimately damage brand credibility.

Another strategy to pay attention to is the integration of campaigns across multiple channels. Campaigns that are not well integrated will lose consistency and appeal, making it difficult to engage audiences.

Apart from that, the timing of the launch is also very important. Launching at an inappropriate time can cause consumers to lose interest, so it is important to plan the timing of the campaign carefully so that it remains relevant and effective.

Setiawan says brands must understand their audience, including demographics, psychographics, and behaviour. Then, they must identify other categories in which the brand audience is also engaged.

“Examine the brand fit and amplification potential of the brand campaign to expand reach. With a strategic and planned approach, cross-promotion can be a very effective tool for strengthening a brand's position in the market, reaching new audiences, and building closer relationships with consumers," he says.

This article was first published in Marketeers in Bahasa Indonesia, edited by Muhammad Perkasa Al Hafiz.