Forming Strategic Alliances

Synergistic selling has found its way in-store and marketers are using P-O-P marketing partnerships to strategically position their promotional programs. Whether it's a co-branded or cross-merchandising effort, a licensing agreement, or a retailer-driven category management program, these joint ventures can boost sales and increase product awareness. In some cases, joint programs can help gain entry into retail accounts by providing retailers with more complete campaigns that appeal to consumers."When you're looking for a partner, you're [going to pick one who is] looking to hit the same target audience," says Kevin Kramnic, promotional marketing manager at Barton Beers Ltd., Chicago. "You also want to choose a partner where the benefits are going to be mutual between both parties."Kramnic says that when he's planning to form a P-O-P marketing partnership, he looks for a partner whose product is a leader in its category, and one that can also provide additional benefits for the retailer. "Retailers support cross-merchandising that gets consumers to go into different category areas in the store," he says.Miller Brewing Co.'s Joe Jones, director of brand promotions, recommends analyzing which products are most often purchased with the primary product as a means of looking for a good "partner" for it. Scanner data is one way the Milwaukee-based brewery determines possible cross-merchandising opportunities. Jones also suggests doing consumer surveys.Partnering with another company to create a joint P-O-P effort requires advance planning -- with a minimum of six months to a year and a half of lead time. Timing, which is crucial for planning any advertising or promotional event, is even more important when you are working with another company (or companies), and must decide who is responsible for each aspect of the promotion.This includes agreeing on what the promotional message is, which company is going to execute the creative, how the display will get into the stores, and who is going to stock the products. "It's communication between the brand manager of both products," says Barton Beer's Kramnic. "You have to be involved in the development of P-O-P from the start on both ends.""If you go in with a potato chip brand, they have their distribution channel of different people who go into the store," says Matthew Borgard, senior national accounts manager on-premise at Barton Beers. "So, will their people be there to drop off the chips to build around the beer, or will you? Who's going to decorate and promote? The details can really kill you."When partnering, each party needs to review how its merchandise is usually displayed and how its co-branding partner's merchandise is usually displayed, says Kramnic. Then the type of retail environment has to be identified. All of this needs to be taken into consideration to determine the size and design of the display.Maybe one partner's product is traditionally sold off the shelf Perhaps the P-O-P must then be designed for that area. Each party must think beyond its normal P-O-P needs in order to consider the partner's needs. Remember, both parties are looking for the same thing -- being able to offer a product in a different part of the store than where it is usually displayed.Marketing P-O-P partnerships can pose considerable challenges for product marketer companies. However, those that do successfully design joint programs can reap great rewards.

Forming Strategic Alliances

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