Why should you consider a strategic partnership?

• Use of existing infrastructure and distribution network
• Instant brand recognition
• Access to loyal customer base
• Future partnerships and funding opportunities
• Use of strategic partner’s resources in marketing, human resources, corporate management and brand strategy

Here are some examples of recent strategic partnerships:

iPod & Nike

What’s a better partnership than that of two of the most innovative consumer products companies, Apple and Nike? During the summer of 2006, both companies announced that they would join forces to launch the Nike+iPod Sports Kit, bringing together the worlds of sport and music. Each company offers a large customer base as well as brand loyalty. Creating this partnership allows customers the ability to purchase a sports package that includes the best music player combined with the best athletic shoes.

Isaac Mizrahi & Target

In 1998, luxury clothing designer Isaac Mizrahi closed his fashion house after Chanel pulled its financial backing. At the time, Mizrahi announced that he was transitioning into screenwriting. It wasn’t 5 years later that he created a strategic partnership with Target Corporation to launch the Isaac Mizrahi Collection of women’s sportswear and accessories. This exclusive partnership at Target gave Mizrahi the mass-distribution he needed to sell his product and it gave Target a luxury product to elevate its brand.

AuctionDrop & UPS Store

During the summer of 2004, eBay consignment company, AuctionDrop, announced that it was creating a strategic partnership with the UPS store to allow customers across the United States to submit their personal property for consignment. This partnership opened up 3,400 new storefronts for AuctionDrop, without the added time, money and energy that it would typically take to open a similar infrastructure. In return, AuctionDrop brought in more customers to the UPS store.

How do you develop a strategic partnership?

While there’s no simple answer, attracting a partner to help you launch your product or service becomes easier when you go after a company that fits with your brand. What do I mean? You’ll find it more successful to approach a company that targets a similar customer, sells other products in the same industry, or has a similar innovation and R&D strategy.

Here are 5 simple steps to help you begin the process of finding a strategic partner:

1. Write down all of the companies that would make a good fit with your product or service (this may take several pieces of paper)
2. Place a star next to all of the names of companies that reach your target customer
3. Circle any companies, from the ones you starred, in which you may have a contact. Although it easier if your contact works in corporate management, it’s still okay if this contact is an hourly employee. Any employee can start the process of pointing you to the decision maker.
4. Start using your contacts to call to set up appointments with the decision maker at those companies. FYI, for retailers, this is usually a specific buyer. 
5. Impress the decision maker by showing them your prototype, market research, exactly what problem your product or service is going to solve and why it’s beneficial to have you and your company as a partner.

Developing a strategic partnership is no easy task, but if you have an innovative product or service and can bring a unique opportunity to a potential partner, you’ll find success more easily attainable.

In the October 2007 issue of WIRED magazine, Breitling, the watchmaker, placed an advertisement for a special edition series of chronographs designed exclusively for Bentley Motors. The Company is calling the campaign, “Breitling for Bentley” and using the opportunity to compare its watches to the prestige of a Bentley automobile.

This is a great example of a company using the leverage of another company to increase its own brand recognition and brand value. While Breitling is already considered a luxury product, Bentley Motors is one of the top luxury brands in the world and this partnership will surely help build the Breitling brand.

This same type of creation can be true in public relations. An example of this would be Simons Jewelers and Lake Forest Confections. Simons Jewelers sells high-end jewelry and Lake Forest Confections sells gourmet chocolates. Individually, both businesses are well respected, but not unique in the eyes of the media. But when these companies came together and created Le Chocolat, a $1.5 million holiday gift, it sparked a media frenzy that resulted in features in Vogue, the Associated Press, and about three dozen other newspapers and magazines.

Another good example would be the partnership between Nutra Pharma Corporation and the World Aquarium. Nutra Pharma, a biotechnology company developing treatments to diseases using modified cobra venom was facing a dilemma. They were in the middle of trials and had no news to share with the media. During this time, they opted to create a partnership with the World Aquarium and sponsor its rare 2-headed snake to help build awareness about their trials as well as the importance of nature. The fit worked and they received spots on various radio and television stations and features in newspapers and magazines.

As you can clearly see from the above examples, combining two or more individual products, services or companies can be a very powerful source of creativity in public relations. The emergence from these partnerships can certainly help drive publicity that would otherwise be no existent.

The next time you are at a standstill with your product or service, give some thought to what you could pair it with to help drive media exposure. As always, feel free to post comments or email me if you have any questions or want feedback on your new PR ideas.

It’s not often that I have time to sit down and watch TV in the evenings, but when I do; my favorite show by far is The Big Idea with Donny Deutsch. Every weekday evening on CNBC, Donny interviews startup and small-medium sized business executives to find out what they did to be successful and discover the source of their creative genius. Go ahead and watch just one episode and I’m sure you’ll get some interesting ideas. For more information, visit http://www.cnbc.com/id/15838512/.

Poker.de – which is apparently an online poker room was sold at DOMAINfest last week for a reported $957,937. This is obviously a new record for the .de extension.

To see the top domain sales each week, check out: http://www.dnjournal.com/domainsales.htm

What does this mean? Well, to start – keeping your brand elevated means that your customers will be constantly pursuing your products. Maybe it’s to display status or maybe it’s because they believe the product is higher quality. Either way, your product must be able to be “just in reach” for the general population, while keeping it “well within reach” for the affluent.

There are certain strategies that you can use to help keep your brand elevated. These include:

1.) Creating a similar product under the same brand that is much more expensive than the one you are planning to sell (ex: Polo vs. Purple Label)
2.) Limit your retailers to those that market exclusively to your demographic
3.) Limit your production (Demand vs. Supply)
4.) Get celebrities involved – use photos of them using your product(s)
5.) Communicate a certain lifestyle designed around your product
6.) Limit discounts to a minimum

To learn more about luxury marketing, check out the Luxury Marketing Council’s website at http://www.luxurycouncil.com/.

Another great resource is the book, Let Them Eat Cake: Marketing Luxury to the Masses.