At the risk of stating the obvious, brands in the 21^st Century have a slew of marketing options at their disposal.  More toys to play with is a dream for some CMOs.  On the other hand, this expansion presents all new challenges the Don Drapers of the good old days never had to consider.

Two things in particular are shuffling the deck.  Content is one.  Not only are more types of content available, but the means of consuming that content are all over the place.  Media fragmentation makes it harder to determine which marketing channels make sense to leverage with finite budgets.

The second is speed.  The rate at which today’s world moves is practically blinding.  Heightened pace plus increased fragmentation means you’re facing shorter attention spans and more options bidding for eyeballs.  Ugh.

Breaking through obviously isn’t impossible, but it sure can be tough.  And what might work for Business A may not be effective for Business B.  Nothing groundbreaking here.

Now, let’s say Business A decides to extend its product line in a way that overlaps with Business B’s user base.  Let’s also say that Business B is struggling to break into a market that happens to be a stronghold for Business A.  Sure, each could spin its wheels trying to figure out the best way to accomplish its respective goals.  They both may very well succeed, too.

Alternatively, Business A may point out synergies between its mission and Business B’s.  Business B may also be able to leverage Business A’s established footprint for easier inroads to new opportunities.  Follow these threads far enough and where could they lead?

To a strategic alliance.

Strategic alliances have all sorts of implications on your brand positioning and messaging.  Before we address these, let’s first consider what alliance marketing really is and who’s done it well.  This places the strategy in context as it leads toward mutually-profitable outcomes.

At their root, strategic alliances are partnerships in which separate organizations bring their own resources to the table to accomplish shared goals.  As successful case studies have racked up, alliances have evolved from short-term tactics into long-term tools for brand growth and development.

Compatibility is crucial here.  Externally, it has to make sense to each company’s audience.  Internally, each entity must share both risk and return.  Such return could be substantial considering good alliances create conditions that accelerate each group’s individual efforts.  This includes the ability to:

• Position a brand using shared equity to drive image and awareness. Ford’s long-running Eddie Bauer SUV models banked on the outdoor retailer’s reputation for ruggedness and versatility to cast its new trucks in the right light.
• Create new revenue streams. Nike’s arrangement with Apple resulted in an innovative new running product, Nike+, that was quickly replicated by competitors.
• Enter new markets or expand market size. American Express’ partnership with Live Nation’s network of concert venues exposes it to new audiences around the world.
• Offer unique competitive advantages. CBS’ and Warner Bros.’ collaboration on The CW network facilitates shared content and joint ad sales in a crowded TV landscape.
• Gain new distribution channels and promotional support. Louis Vuitton’s exclusive set of luggage for BMW’s i8 created cross-promotional incentive for both brands to reach luxury buyers.
• Go to market faster or cheaper. Visa’s use of Marvel characters to teach youngsters about finance required less capital and offered more brand rub-off than if it had created similar content in-house.
• Offer flexibility since alliances may end when needs shift. Pottery Barn’s successful partnership with Benjamin Moore on a custom line paints transitioned to Sherwin-Williams based changing goals.

In Part 2 and Part 3 of this series, we’ll look at five creative ways businesses have used strategic alliances to effect growth.  Part 4 will wrap up with how your own sales and marketing teams can take advantage of these partnerships for similar results.

Go to Part 2.