Bringing together more than one trusted and established brand name develops a marketing synergism that cannot be beaten.
The advertisement headline read, Bring The Magic of Mattel Home for the Holidays. Just under the headline were several foods producing toys offered. The hook was that it showed Golden Arches-type food. Mattel had a relationship with McDonald’s. And, what quality parent would deny their child the opportunity to make their own McDonald’s hamburgers, fries, shakes and cookies at home?
In the case of Nestlé/Rold Gold Flipz (chocolate-covered pretzels), the synergy that can be developed by co-branding is awesome. Co-branded products have, at a minimum; twice the marketing impact and customer pull as traditional branding. Consumers believe that with two trusted names, the product must be exceptional. There was one problem with Flipz, though. When they were first introduced, the consumers’ acceptance was so great that the distributors had trouble keeping their stores in stock. What a problem to have . . .
In recent years the automotive industry has found value in Partnering with highly recognizable prestigious brands of clothing and accessories. Ford Motor Company partners with the successful catalog retailer Eddie Bauer to offer luxurious editions of their popular sport utility vehicle models, Explorer and Expedition. As customers’ perception of quality and value can be influenced through these offerings, they are also willing to pay more for the perceived value.
Ford Motor Company states, in a June 29, 1999 Ford news release, its pleasure with its Eddie Bauer relationship in a news release. “Two of America’s most enduring brands reached a milestone today in their 17-year collaboration as Ford and Eddie Bauer celebrated production of the one millionth Eddie Bauer edition Ford vehicle at the St. Louis Assembly Plant, home of the Ford Explorer sport utility.”
“It’s almost uncanny how well-matched Ford and Eddie Bauer are,” says Ford Division Marketing Communications Manager Jan Klug. “Both companies have reputations built on an uncompromising commitment to quality, durability and customer satisfaction. For our customers, this means the irresistible combination of Ford’s ‘go anywhere’ capability and Eddie Bauer’s rugged style. For both companies, it means enhancing each other’s brand.”
“It’s no secret why Ford is setting industry records for SUV sales in a U.S. market that currently has 41 SUV nameplates,” says Explorer Brand Manager Doug Scott. “We are creating products that really excite the customer. And in partnering with Eddie Bauer, we are expanding the opportunities for the Explorer and Expedition to be a meaningful part of our customer’s active lifestyles.”
Because of Ford’s success in co-brand Partnering with Eddie Bauer, they are trying to duplicate their success with Harley-Davidson Motor Company, Milwaukee, Wisconsin in their limited edition Harley-Davidson F-150 pickup truck. The customized version is restyled, all-black, with distinctive Harley-Davidson orange pinstriping and chrome accessories.
“A strategic alliance between the Ford Motor Company and Harley-Davidson makes mutual historical and business sense,” noted Gurminder Bedi, vice president, Ford Truck Vehicle Center in a January 6, 2000 Ford news release. “Our common heritage as American motor vehicle manufacturers and our common centennials of 2003 were just too good to pass up as a natural business opportunity. “The partnership makes good business sense,” Bedi added. “The world recognizes both companies as original American innovators known for exciting, quality products.”
“This alliance brings together two of the most well-known and admired companies in the world,” said Jeff Bleustein in the same release, Harley-Davidson chairman and chief executive officer. “Ford and Harley-Davidson customers alike want a distinctive vehicle that makes a statement about themselves as individuals.”
Even in the recreational vehicle (RV) industry, a manufacturer sees marketing value in co-branding. Fleetwood Enterprises, Inc. in Riverside, California with $3.5 billion in sales in 1999, is in alliance with Bass Pro Shops Outdoor World. Fleetwood has enjoyed good sales volume in its private-label RV partnership with Missouri-based Tracker Marine LP and its Bass Pro Shops Outdoor World stores. Fleetwood built and branded with the Tracker and Trailstar name are sold in six Bass Pro Shops Outdoor World stores and 56 Tracker marine dealerships. RVs promoted at the Outdoor World stores sell for a single, non-negotiable price (unique to the RV industry) and can be purchased over the Internet. Models range from a Trailstar 8 folding trailer to the 29-foot Class C Trailstar RV.
For more on cross-promotion, check out our July 2023 guest column.
About Ed Rigsbee
Ed Rigsbee is the consummate evangelist for member recruitment and strategic alliance success. He holds the Certified Association Executive (CAE) and Certified Speaking Professional (CSP) accreditation. Ed is the author of The ROI of Membership-Today’s Missing Link for Explosive Growth, PartnerShift, Developing Strategic Alliances, and The Art of Partnering. To his credit, he has over 2,500 articles in print and countless articles electronically published.
Ed is the Founder and CEO of the 501(c)(3) non-profit public charity, Cigar PEG Philanthropy through Fun, and president at Rigsbee Research which conducts qualitative member ROI research and consulting for associations and societies.
