With increasing frequency, companies today are undertaking joint marketing projects. That is, two different companies pair their respective brands in a collaborative marketing efforts

The New product launch clearly identifies the brands that cooperated to create and market them. Thus Danone and Motta introduced 'Yolka', a yogurt ice cream with packaging that uses both brands to endorse it.

Many line extensions capitalize on a partner brand's equity. for example, Haagen Dazs, launched a Bailey's-flavored ice cream . In the same vein, Delicious brand cookies now includes a Chiquita banana taste in its line.

These are all examples of famous brands that have been using logic of CO-BRANDING

To maximize their brand extension success rates, many companies seek help from other companies' brands, whose established reputation in the new market might prove deceive. Hence Kellogg's co-branding its cereals from health oriented adults with healthy choice.

Co Branding may help usage extension.In Europe, for instance, Bacardi and coke advertise together. This helps Bacardi's market penetration strategy because the ads demonstrate another way to drink Bacardi. Moreover, Bacardi's status is a powerful endorsement for Coke as the ideal mix. Thus the pairing also benefits Coke, which wants to remain the number one adult soft drink.
This is a good example of even marketing penetration strategy.

Integrated co-branding has now become commonplace. Nutrasweet, for example, wanted to bolster its image, so it encouraged and co-financed advertising campaigns by its clients brands. In tun these clients brands endorsed Nutasweet and endowed it with connotations of pleasure and affective value, until now sugar's exclusive domain. The same holds true for Lycra, Woolmark and Intel: these ingredient brands are eager to promote co-branding, both on the product itself and in advertising and promotion.