Strategic Brand Partnerships Help Create Competitive Edge
September 15, 2006 issue
Robert Hollander

 

A not-so-subtle revolution is taking place globally as the consumer product marketplace bifurcates between the extraordinary and the less interesting. Brands must engage their audiences emotionally, working to build their edge and relevancy.

Engage. Surround. Hold.

Brands are successful at holding onto customers because of the emotional fabric and bond they must build with users. Authentic innovation is a requirement. Meaningful points of difference and a sharper edge with competitive options are a must. Most importantly, relevance to the consumer’s life and passions may trump all as the strongest imperative at the top of the brand-value pyramid.

The key question marketers must ask: how can I make a meaningful contribution to the lifestyle of my core users, what higher purpose can I adopt that will resonate and be meaningful to them?

The act of engagement and involvement means the brand works to surround its consumer and to be a player in areas that matter to them—a nutrition brand understands the role and transformative effects of fitness and exercise to those most devoted to taking care of themselves. The motorcycle brand understands the love affair its fans have with passion for the open road. So it works to foster a community of like-minded individuals by facilitating experiences the user community can share.

Dodge, a brand founded on performance and muscular styling of appeal to a middle-income male target, recently announced an unprecedented partnership with Monaco Coach, a leading maker of recreational vehicles. Now Dodge truck owners will be able to enjoy their RV passions with an exciting bonus: their towable trailers can be outfitted with paint schemes and subtle Dodge branding to trick out the entire rig.

The magic here for Dodge is executing a profitable foray deeper into the lifestyle of core users without incurring the manufacturing, distribution and marketing costs of developing the product themselves. A strategic partnership permits the concept to become a reality while generating revenue for all involved. The strategic insight: the towable RV trailer is dead center in a lifestyle passion for Dodge truck owners.

While understanding this is one thing, executing it is another. External brand partnerships may provide the answer. In the days of yore this was known as licensing and most often associated with leveraging a brand reputation to help secure a unique source of profitable revenue. Yes, the real dollar contributions remain an alluring part of this proposition, but licensing at its highest and best form is really about creating strategic partnerships with other organizations.

The goal is to help brands cost effectively surround the consumer, thereby increasing both presence and relevance in their lives. These new touch points place the brand “in league” with the consumer’s lifestyle and in the act of doing so earn their “permission” to have a relationship based on reciprocity. This pathway must be followed if brands are to rise above the conditions that increasingly pull less interesting and remarkable brand propositions towards commodity status. Strategic brand partnerships can make it possible.

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Robert Hollander is president of Brand-Sense Partners, a strategic brand licensing firm based in Los Angeles.