| Strategic Alliances are the key for your | | | | quality parent would deny their child the |
| Cross-Promotion success. A popular reason for | | | | opportunity to make their own McDonald's |
| companies to come together is to reciprocally | | | | hamburgers, fries, shakes and cookies at |
| promote one another. Ideas are as simple as a | | | | home?Nestlé/Road Gold Flipz (chocolate |
| local pharmacy and dry cleaner promoting each | | | | covered pretzels), the synergy that can be |
| other with specials or coupons, to regional | | | | developed by co-branding is awesome. |
| promotions, to national promotions. | | | | Co-branded products have, at a minimum; twice |
| Cross-promotions can be developed with | | | | the marketing impact and customer pull as |
| competitors or between organizations from | | | | traditional branding. Consumers believe that |
| different industries. The key is simply | | | | with two trusted names, the product must be |
| this-do you have similar customers? Almost | | | | exceptional. There was one problem with the |
| everywhere you look, you can see one | | | | Flip though. When they were first introduced, |
| organization cross promoting with another. | | | | the consumers' acceptance was so great that |
| Recently, a cross-promotion advertisement in | | | | the distributors had trouble keeping their |
| a San Francisco newspaper for Pacific Bell | | | | stores in stock. What a problem to have . . |
| also involved Round Table Pizza, Hollywood | | | | .In recent years the automotive industry has |
| Video, Nokia and the Special Olympics.In your | | | | found value in Partnering with highly |
| effort to make cross-promotion alliances | | | | recognizable prestigious brands of clothing |
| work, develop your process by keeping the | | | | and accessories. Ford Motor Company partners |
| below listed steps in mind:1. Be clear on | | | | with the successful catalog retailer, Eddie |
| what you want to create for yourself or your | | | | Bauer to offer luxurious editions of their |
| company.2. Discover the; What's in it for me | | | | popular sport utility vehicle models, |
| (WIIFM) for your partner(s).3. Develop a list | | | | Explorer and Expedition. As customers' |
| of who does what for physical and financial | | | | perception of quality and value can be |
| contributions.4. Plan for the unexpected.5. | | | | influenced through these offerings, they are |
| Explain to your partner(s) the value they | | | | also willing to pay more for the perceived |
| will receive.6. Help your partner(s) to have | | | | value.Ford Motor Company has enjoyed its |
| an emotional ownership in the alliance.7. Do | | | | relationship with Eddie Bauer for over 20 |
| the above step for yourself also.8. Execute | | | | years. In 1999, the two brands reached a |
| the promotion.9. Debrief with partner(s) the | | | | milestone in their collaboration as Ford and |
| value received from the investment.10. Plan | | | | Eddie Bauer celebrated production of the one |
| the next promotion."Got Milk?" The California | | | | millionth Eddie Bauer edition Ford vehicle at |
| Milk Processors Board, as reported in The | | | | the St. Louis Assembly Plant, home of the |
| Wall Street Journal in the late 1990s stated | | | | Ford Explorer sport utility.At the time, |
| that this national promotion has been running | | | | stated "It's almost uncanny how well-matched |
| since 1993. They also put "Got Milk" on Girl | | | | Ford and Eddie Bauer are," says Ford Division |
| Scout Cookies. They have even gotten their | | | | Marketing Communications Manager Jan Klug. |
| milk advertisements on cereal, cookies and | | | | "Both companies have reputations built on an |
| chocolate mix packaging. Jeff Manning, | | | | uncompromising commitment to quality, |
| executive director of the California Milk | | | | durability and customer satisfaction. For our |
| Processors Board, says, "We need those people | | | | customers, this means the irresistible |
| to promote for us." "In return, we | | | | combination of Ford's 'go anywhere' |
| affectionately call them co-dependent | | | | capability and Eddie Bauer's rugged style. |
| foods."Manning doesn't stop there. He | | | | For both companies, it means enhancing each |
| convinced Dole Food Co. in Westlake Village, | | | | other's brand.""It's no secret why Ford is |
| California to add another sticker on to their | | | | setting industry records for SUV sales in a |
| clusters of bananas for the retail market. | | | | U.S. market that currently has 41 SUV |
| You got it, "Got Milk" stickers. In the late | | | | nameplates," says Explorer Brand Manager Doug |
| 1990s Dole started putting "Got Milk" | | | | Scott. "We are creating products that really |
| stickers on bunches of bananas--millions. | | | | excite the customer. And in partnering with |
| Milk is getting more interruptions in the | | | | Eddie Bauer, we are expanding the |
| minds of consumers. The more Partnering milk | | | | opportunities for the Explorer and Expedition |
| can do with products in other parts of the | | | | to be a meaningful part of our customer's |
| grocery stores, the more sales potential they | | | | active lifestyles."Because of Ford's success |
| enjoy. Dole even got an "ah ha" from the | | | | in co-brand Partnering with Eddie Bauer, they |
| cross-promotion, they have been Partnering | | | | are trying to duplicate their success with |
| with Hollywood to promote new release movies | | | | Harley-Davidson Motor Company, Milwaukee, |
| such as Anastasia and Babe in the | | | | Wisconsin in their limited edition |
| City.Researching for a presentation for the | | | | Harley-Davidson F-150 pickup truck. The |
| National Home Furnishings Association, I | | | | customized version is restyled, all-black, |
| discovered an interesting alliance in | | | | with distinctive Harley-Davidson orange |
| Northern California. They call themselves the | | | | pinstriping and chrome accessories."A |
| Sonoma County Fine Furniture Association | | | | strategic alliance between the Ford Motor |
| (SCFFA). What did they do? Eight fine | | | | Company and Harley-Davidson makes mutual |
| furniture retailers, competitors, banded | | | | historical and business sense," noted |
| together to survive the recession of the | | | | Gurminder Bedi, vice president, Ford Truck |
| early 1990s through cross-promotion and | | | | Vehicle Center in a January 6, 2000 Ford news |
| buying strength.They bought advertising | | | | release. "Our common heritage as American |
| together on the local radio and in the local | | | | motor vehicle manufacturers and our common |
| newspaper. They even dictated to the | | | | centennials of 2003 were just too good to |
| newspaper on which pages their advertising | | | | pass up as a natural business opportunity. |
| would be located. They developed combined | | | | "The partnership makes good business sense," |
| events where customers would visit several of | | | | Bedi added. "The world recognizes both |
| the stores to be eligible to win prizes. They | | | | companies as original American innovators |
| promoted each other to their customers within | | | | known for exciting, quality products.""This |
| the store, especially if the specific | | | | alliance brings together two of the most |
| retailer did not have exactly what the | | | | well-known and admired companies in the |
| customer was seeking. They even printed a | | | | world," said Jeff Bleustein in the same |
| combined brochure, including the address and | | | | release, Harley-Davidson chairman and chief |
| map locations of each member. The front of | | | | executive officer. "Ford and Harley-Davidson |
| the brochure said, People you can trust. | | | | customers alike want a distinctive vehicle |
| Wow, what impact!On a United Airlines flight | | | | that makes a statement about themselves as |
| from Washington, D.C. to Atlanta, the cabin | | | | individuals."Even in the recreational vehicle |
| attendant handed me my usual bag of peanuts. | | | | (RV) industry, a manufacturer sees marketing |
| But, what was unusual was the size of the bag | | | | value in co-branding. Fleetwood Enterprises, |
| and its weight. After closer examination, I | | | | Inc. in Riverside, California is in alliance |
| noticed that an America Online (AOL) diskette | | | | with Bass Pro Shops Outdoor World. Fleetwood |
| was included with the peanuts. It made sense, | | | | has enjoyed good sales volume in its |
| a business route shuttle-what a great way to | | | | private-label RV partnership with |
| get the AOL software into the hands of | | | | Missouri-based Tracker Marine LP and its Bass |
| business people. But do not get caught | | | | Pro Shops Outdoor World stores. Fleetwood |
| sleeping. Now, things have changed for AOL | | | | built and branded with the Tracker and |
| and they have been forced to offer for free | | | | Trailstar name are sold in six Bass Pro Shops |
| what they once charged.Forest City, Iowa, | | | | Outdoor World stores and 56 Tracker marine |
| recreational vehicle (RV) manufacturer, | | | | dealerships. RVs promoted at the Outdoor |
| Winnebago Industries, Inc. and Nebraska-based | | | | World stores sell for a single, |
| sportsman's outfitter, Cabela's have found | | | | non-negotiable price (unique to the RV |
| synergies through reciprocal promotion | | | | industry) and can be purchased over the |
| activities. Cabala's has provided an ideal | | | | Internet. Models range from a Trailstar 8 |
| venue in which Winnebago dealers have | | | | folding trailer to the 29-foot Class C |
| displayed their RVs in quite a number of | | | | Trailstar RV.Cross promotion and co-branding |
| outdoor events. Most events were run by | | | | are important strategies for business growth |
| Cabela's promotional arm, Sportsman's Quest. | | | | that you will want to consider very soon. Why |
| Winnebago products were also displayed in | | | | wait until your competitors gobble up the |
| Cabela's catalogs. Winnebago, in turn | | | | best partnering relationships?To access |
| displayed Cabela's products at their | | | | helpful additional information from Ed |
| events.Strategic Alliances for Co-Branding | | | | Rigsbee at no charge, please visit from |
| | | | PartnerShift-How to Profit from the |
| Bringing together more than one trusted and | | | | Partnering Trend by Ed Rigsbee, CSP, |
| established brand name develop a marketing | | | | published by John Wiley & Sons, New York. |
| synergism that cannot be beat. The | | | | Rigsbee is also the author of Developing |
| advertisement headline read, Bring The Magic | | | | Strategic Alliances and The Art of |
| of Mattel Home for the Holidays. Just under | | | | Partnering. Rigsbee has over 1,000 published |
| the headline were several foods producing | | | | articles to his credit and is a regular |
| toys offered. The hook was that it showed | | | | keynote presenter at corporate and trade |
| Golden Arches type food. Mattel had a | | | | association conferences across North America. |
| relationship with McDonald's. And, what | | | | |