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When two brands are better than one

Elena Alvarez takes a look at the effectiveness of marketing partnerships

In the corporate world, rivalry is more common than co-operation. But increasingly; companies have been setting aside their differences; the new idea is that two brand names are better than one. Sharing databases, strategies and communication systems can be the most effective means of attracting customers. (G )This partnership will give it access to the utility company's database of thousands of corporate clients, who will be offered special deals on all its products.

The philosophy behind such joint ventures is simple. In economically challenging times, marketing partnerships provide a cost-effective method of increasing brand awareness and sales. As one expert in the field puts it, 'Clever marketing partnerships allow brands to target the right people, cutting down the above-the-line spend.' (8) .....E....... It is better to simplify the

process and give them one focal point.

Recent research has indicated that marketing partnerships can be up to 27 per cent more productive than single company campaigns.(9) .......B..... In particular, it is ideal for bringing instant branding to companies that lack immediate consumer appeal.

One well-established UK phone manufacturer, ITB, was quick to realise this, and formed an alliance with 7a/fc a leading women's magazine. The phone company has benefited from the strong branding of the magazine, which has its customer base among professional women in their early 20s. (10) ....D........ This combined approach also offered ITB a quick route into image enhancement, and this is true of many other marketing partnership deals. To give another illustration, it is no coincidence that some well-known cartoon characters are currently enhancing the image of Nasco household cleaning products.(11).....F.......And, of course, this strategy should also guarantee that consumers' children insist on these products rather than rival brands.

However, while association with a powerful brand can give a significant boost to sales, being connected to a devalued brand can have a negative result. The problems of one brand inevitably impact on the other in a partnership.(12).....A.......A company may take years to recover from this sort of bad publicity. Indeed, there are numerous examples of disastrous marketing alliances. In such cases, not enough thought has been given to the partnership and the reasons behind it, and it has brought little value to either the customer or the companies involved.

A In such circumstances, the effects are frequently major and can be long-lasting.

B Some experts therefore predict that this style of marketing will take up an increasingly large proportion of many companies' total marketing budgets.

C Successful marketing partnerships can consequently bring a financial advantage even to small and struggling companies such as these.

D In return, its partner enjoys a broader distribution platform from which to promote its brand.

E With only a finite number of consumers in any target market, there is no need to overwhelm prospects with competing messages from different organisations.

F These are fairly standard items, but clearly the company hopes to transform them by broadening the associations consumers have with the brand.

G For example, Profit Plus, a large UK financial services company, has recently joined forces with a leading supplier of electricity.

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