Partnership Brand Marketing
Partnership brand marketing brings together two different organizations and brands, each of whom already has its own brand equity and its own channels of distribution. Whether it's a partnership between a chain of pizza restaurants and a chain of video stores or between an airline and an apparel manufacturer, the aim of the partnership is to gain new customers for each by linking their brands and creating incremental marketing exposure.
Marketing partnerships are nothing new. Two businesses in related fields that both sell to the same customer base have often teamed up to create special events for their mutual advantage, but now the strengths of partnership brand marketing are being extended into strategic activities with the deliberate purpose of acquiring new customers in all the channels of distribution used by both partners.
Partnership brand marketing takes a longer view of marketing activity than its promotions-based predecessors. The objectives now include the creation of a foundation for joint sales and marketing activities that incorporate shared distribution channels and dual-brand merchandising. Partnership marketing programs can also establish a base on which to create a higher level of perceived value for the consumer.
Examples of successful partnership brand marketing
Two northern California transportation systems with several interchange points that provide complementary services in neighboring areas have created and marketed a range of products that extend travel into the other operator's territory, thereby increasing the total passenger traffic of both systems.
Food products manufacturers, Lay's and Masterpiece, teamed up to create and jointly market Lay's BBQ Chips made with Masterpiece BBQ Sauce. Lay's enhanced its customers' perceptions of product quality, while Masterpiece acquired greater brand strength and a major new customer.
Two pharmaceutical companies, one with stronger product development capabilities and the other with a stronger sales force, teamed up to create and launch a new bronchodilator that has become a leading brand in its market.
A telephone services provider has teamed with a security firm to set up a company that provides back-to-base security systems to households and businesses. The telephone company provides the leads and the telephone lines; the security firm handles the sales and installations.
Putting together a brand marketing partnership
Brand marketing partnerships may take some negotiation effort to create but they can really be worth the effort and become a major business growth driver. Like all business arrangements they need to be carefully thought through before implementation. These are some of the proven rules for building a successful partnership:
• Partner at the top level of each partnering organization and work to gain the buy-in at all levels of each partner's team
• Partners should have equal and adequate resources to dedicate to the partnership
• The partners must be equal in decision making and management rights in relation to the partnership to prevent friction
• Both partners should benefit from the arrangement, although their benefits may be different in nature
• The partners should have a shared organizational purpose that is met by establishing the partnership
• There should be a formal partnership agreement in writing that outlines the objectives and operation of the partnership
• The partners must commit to working together to make the partnership successful
• There must be ongoing and effective communications between the partners at all times
• The partners should have similar corporate values, goals and 'personalities'
Creating strong, relevant and effective partnership brand marketing programs can be the basis of a company's entire marketing efforts. Leveraging the strength of partnership brand marketing to gain increased marketing exposure and extend into new distribution channels is a valuable opportunity for marketers who want to increase their competitiveness in today's rapidly changing marketplace.
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