08.09.2009

Relay Insights: The Co-Marketing Path to Success

In the sponsorship industry, we tend to focus on how brands can partner with sports and entertainment properties to leverage and convert the emotional connection people have with the things they are most passionate about. However, an emerging area of focus for a growing number of companies is co-marketing partnerships with other brands that allow them to reach new customers, grow share of mind and harness better business results through collaboration.

A few examples of brand partnerships we like from 2009 include Mars Snackfood’s Dove Chocolate teaming with Gallo wines for a Valentine’s Day promotion, Sara Lee’s Hillshire Farm Miller High Life Beer Brats, Sharp Electronics partnering with Anheuser-Busch around Bud Bowl 2009, and Maytag's "Tons of Tide" program with P&G's Tide brand, where consumers could get three years of free Tide with a Maytag purchase.

Unlike sponsorships, co-marketing programs require no rights fees, so each marketing dollar spent can go directly towards promotion activation, and further efficiency can be found in sharing marketing expenses with brand partners.

In addition, co-marketing campaigns can also enhance a brand’s connection with target consumers by reaching them with a promotion involving two brands for which they have a high affinity, image and loyalty.

Here are five tips to consider when exploring co-marketing partnerships with other brands:

1. A little research can help – Although the process of identifying potential co-marketing partners may seem purely intuitive, syndicated research sources such as MRI have tools that allow you to match various brands and product categories to your brand's target customer, making the process even easier.

2. Look for a value exchange – Co-marketing partnerships do not necessarily require a monetary investment between brands. It’s possible to utilize the value of planned media spending, other marketing investments and assets that can be converted to support the co-marketing program as a no-cost way to bring value to the partnership.

3. Consider distribution – It’s important to evaluate the retail footprint of partner brands to understand how and where the co-marketing program can be offered. You don’t want to offer a co-promotion in markets where the partner brand is not sold or has low awareness. Meanwhile, complementary retail channels in the same markets can be a great way to extend your brand’s reach.

4. Target your weaknesses – In selecting partners, think about your brand’s challenges that could potentially be improved upon via the partnership. Partners who have strengths (such as strong brand loyalty within a customer segment you are targeting or wide distribution in a new market) in areas where your brand is currently limited could be the right co-marketing partner to help improve those metrics and fill in gaps.

5. Define the measurement – Define the measures of success up front for both brands. Then, map out a measurement plan far in advance that allows both brands to best understand if the relationship met their respective objectives. This is a great opportunity to tap the resources and expertise of both brand organizations and improve your own best practices in the process.

The final key is to make sure that whatever program you consider remains focused on meeting a consumer need or desire, and that it doesn’t get derailed with brand noise. No matter how you go about finding the appropriate partner for your brand, co-marketing is a concept that in today's marketing environment should be considered in every brand's marketing or promotional plans.

We are Relay Worldwide.

Our mission and goal is to make brands a more meaningful part of people’s lives. As experts in brand consulting, sponsorships, lifestyle and experiential marketing, we use relevant insights to create real connections with people where they live, work and play. We are a part of the Publicis Groupe family and we serve a diverse roster of brands including Coca-Cola, Sharp Electronics, Kashi and Beam Global Spirits & Wine.

Contact us anytime or visit us at www.relayworldwide.com.