Likening a successful brand partnership deal to a good marriage may be a well-trodden cliché, but it remains a relevant description of affinity and partnership marketing. With a growing number of brands facing shrinking marketing budgets, the potential cost-efficiencies of such tie-ups have become hugely attractive.
The growth of the industry over the past two years, combined with shrinking budgets, means that there is an unpreced-ented number of brands seeking to form relationships with fellow brands, media platforms, and entertainment and cultural events.
Agencies jokingly refer to negotiations as akin to the ‘Middle East peace process', as brands jostle for supremacy. Some brands have fallen foul of the mantra that not every deal is a good deal with a series of short-term and mismatched tie-ups, which not only lack longevity, but risk alienating existing consumers.
The growth of the industry also raises issues for more traditional event and media sponsorships, as brands attempt to build on their own media platforms and products, exchanging services and, in some cases, paying partner brands for the custom generated by the tie.
Jo Arden, partnership development manager at Iris London, which works with high-profile clients such as the COI, says there is a danger that brands look to partnership activity to fill gaps in their marketing budgets. ‘There is no point linking with other brands for the sake of it,' she says. ‘You have to protect your brand's legacy, or it becomes a badging exercise.'
Historically, the lion's share of brand partnership activity has been negotiated on an ad hoc basis by individual marketing teams. Compared with other agency discip-lines, it is relatively under-developed. While many agencies offer partnership work as an offshoot from their core busi-ness, only a handful work solely on the discipline.
Chris Reed, chief executive of specialist partnership marketing agency Cocktail Marketing, says: ‘Brands have recognised the power of partnerships. The COI created a roster of nine partnership marketing agencies three years ago.' For big brands such as Nestlé, which created its own partnership roster six months ago, partnership marketing is certainly big business.
Mark Whitmore, director of partnership marketing agency Swordfish, says some clients have unrealistic expectations about viable partnerships. ‘Some brands get starry-eyed about potential partners,' he says. ‘They want Apple or Coca-Cola, even if they are not relevant to them and are too small to partner with them.' Whitmore adds that, while a high-profile brand may ensure PR coverage, it may not fulfil its objective, as the smaller brand may be overshadowed. In light of this, agencies often advise brands against links with big-ticket brands and events.
Nonetheless, agencies report that the pressure on marketing budgets is fuelling demand for partnership activity. Gavan Stewart, founder of Touchdown Communi-cations Group, says the industry has become more sophisticated over the past two years. ‘It used to be a nice-to-have discipline - now it is a must-have,' he says.
However, according to Stewart, brands are often not set up to market them-selves to other brands. ‘A common mistake is that brand directors do so in the same way they would to consumers, without spelling out the business advantages,' he says.
Many brands also maintain a somewhat ad hoc approach to partnerships with no robust selection criteria for selection or rejection. The fact is that brands and events will most likely be targeting several competitors - those passing up opportunities often forget that their competitors may take up the mantle.
Media and entertainment brands have, historically, accounted for the majority of partnership activity, but categories such as automotive are becoming more prominent. Many brands run their partnership activity through their existing sales promotion agencies or tie it in with event sponsorship.
Agencies predict that the market will become more commercial, with brands, in effect, being paid for delivering effective consumer leads to other companies. ‘We are putting more deals together with a commercial element,' says Whitmore. ‘Some clients are getting money from partner sales which they can then use to
top up their marketing budgets.'
Partnership deals certainly offer big opportunities, but not every brand will find its ideal match without turning to more traditional sponsorship activity, media owners and events to gain credibility by association.
Case Studies: Mr & Mrs Smith and Saab: on the right road
Boutique hotel expert Mr & Mrs Smith lent its style credentials to car brand Saab when the two teamed up to launch a branded interactive route planner at www.mrandmrssmith.com/routeplanner.
Sponsored by Saab, the route planner creates tailor-made experiential UK road trips. Consumers can plot their journey, with the added benefit of expert advice on hotels, restaurants and gastropubs along the way.
The route planner uses Microsoft's Virtual Earth mapping technology, which includes road data and aerial imagery.
The service also allows users to avoid congested motorways and opt for a scenic route instead. The map is integrated into the Mr & Mrs Smith website to maximise the positive brand association.
Colette Casey, manager of strategic above-the-line communications at Saab, says the ‘innovative partnership provides
the tools for the independent thinking our customers demand, while being fun and informative'.
Chambord and London Fashion Week: logical match
Chambord has sponsored London Fashion Week for three years. The tie-up has proved hugely successful for the high-end spirit brand, as it has cemented its fashion credentials.
The drinks brand provides product support and a branded bar area during the shows, and Charlotte Ashburner, brand manager for Chambord and Tuaca, claims it has a natural affinity with fashion. ‘Cham-bord is aimed at ladies who enjoy luxury and are confident about fashion,' she says.
Chambord also sponsors the Ascot Fashion Show, as well as a pre-Fashion Week party in association with women's monthly magazine Marie Claire.
The partnership has evolved naturally, with Chambord also having featured at Vivienne Westwood shows.
It also uses the tie-up with London Fashion Week as a marketing tool in both on- and off-trade activity.
In August, Chambord also launched two bespoke branded nail colours in con-junction with Nails Inc, while, last month, Harvey Nichols ran a promo-tion in which customers were offered Chambord Champagne cocktails and French martinis when they had a manicure.
Galaxy and the British Book Awards: well-read
Galaxy has sponsored the British Book Awards for the past two years. The association is a key part of its ‘Triangles of Pleasure' strategy targeting the chocolate brand's core female audience during their ‘me time'.
Senior brand manager Sarah Mellor says Galaxy's research revealed that one of the key activities for women settling down on the sofa was reading. In line with this, Galaxy teamed up with the Richard & Judy Book Club, whose Galaxy-branded stickers feature on 40% of books sold in the UK. According to Mellor, the affinity has helped Galaxy carve out a ‘unique territory' in the market.
Galaxy has worked with key players in the book industry to set up book clubs, offer reviews and give free titles to readers. It has also advertised its products in books, and planted them in public places for consumers to find, with branded ‘pick me up' stickers
on them. Harper Collins, Transworld and Penguin have donated copies to distribute.
The brand also encourages consumers to comment on books they have read on a dedicated branded Facebook page.