Partnerships at retail: working together for the greater good

October 12, 2011  |  by Emily Peterson

These days it’s not easy for a brand to get incremental shelf space in specialty retail outlets – or any shelf space at all, for that matter. Retailers are demanding value beyond the products your brand offers – they want to know how you are going to help further their expertise, increase basket ring and build loyalty with their shoppers. That’s a tall order.

Developing a complementary partnership with another brand that fits your category may give you just the edge you need to get noticed by retailers and shoppers alike. At first glance co-branding might seem like a fairly complex and time-intensive decision, given the myriad brands that might potentially fit, but it’s easier to discover those mutually beneficial partnerships than you may think.

Start by understanding your shopper.

What do they buy in conjunction with your product or to supplement it? What else are they interested in that relates to your product? Are they accessing services relevant to your product?

A great example we’ve recently encountered is with small dogs in pet specialty. Small dog owners spend vastly more than other dog owners on dog accessories, grooming services and products and toys for their pampered pets. These items also happen to be some of the higher-margin inventory our retailers carry. Cross-selling or bundling relevant products such as these have helped brands gain incremental real estate, generate positive sales results and strengthen retailer relationships.

Next, look for a product or service that aligns with your brand.

Think about your objectives – both commercial and intrinsic – and the effect partnering with this product would have on your brand. What does its equity do to yours? Will a partnership deliver value to retail and consumer audiences? What would you ask them to bring to the table? Ways to identify these brands and inform your decision-making process may include looking at syndicated research sources like MRI, observing shopping behavior in-store or surveying consumers to discover other products they buy (or would like to buy) when purchasing your product.

Once you’ve identified a partner, it's important to collaborate on the shopper strategy, set measurable and relevant goals for both parties and always keep the consumer in focus.

Finally, involve the retailer.

Getting their input on the program before it’s finalized will create buy-in and support the overall success of the program. Really listen to the needs to the retailer to understand opportunities like gaps in their promotional calendars or whether they have ideas about how you can help maximize real estate within their store. Having these insights will help you to negotiate the best placement possible.

At the end of the day, we all want to win with the shopper – so let’s do more work together for the greater good.