As an alternative to extending its brand through new product development, a firm can choose to increase its own brand equity by leveraging the equity of another brand using a co-branding strategy.

Co-Branding Strategy

A partnership between two or more brands to jointly market a product or service, leveraging the strengths of each to reach a broader audience.

Brand Equity

The value and strength of a brand that is determined by consumer perception, recognition, and loyalty, which ultimately influences a brand's ability to generate financial performance.

Product Development

The process of conceptualizing, designing, and creating a new product to be offered to the market.