Yes, it is a bit like herding cats when it comes to aligning two brand strategies together but it can be done. We’re doing it again for two brands looking to generate sales lift within the growing Cash-N-Carry (CnC) segment.
CnC’s have grown significantly over the past five years. Driven by the last recession, CnC’s, such as Sam’s Club, COSTCO and Restaurant Depot are now players in reaching small businesses. For this assignment, the targets are small restaurants, churches, caterers, and food truck operators who, for a variety of reasons prefer to purchase their food and paper goods from a CnC instead of a regular food distributor.
We’re aligning other brands with one of our clients to execute cross merchandising promotions. This involves identifying non-competitive brands whose products naturally align for a recipe solution. For example, a pizza dough made by one company with a pizza sauce made by another. We can use tear pads showcasing a recipe and a rebate offer that creates pull-through to the sale of both products at the same time at checkout. The consumer sends in a copy of their store receipt and if both items appear on the receipt, each company will mail a rebate to them.
The manufacturers enjoy exposure of their brand in new locations within the store with this kind of cross merchandising. I my example, the pizza sauce company gets some exposure within the freezer case where the pizza dough is shelved. The pizza dough earns some exposure on the dry goods shelf.
Truth is, that there won’t be high coupon redemptions using this model, but it should create sales lift (isn’t that really what you are looking for?). That is because many consumers will see the special offer and purchase the two products. However, they will likely be either too busy or forget to actually make the effort to complete the rebate form, make a copy of their receipt and pay the 46¢ to mail it in.
Brand partnerships are an important way to build awareness and sales while reducing the overall cost of the promotion, since each company will pick up only half of the cost of the effort instead of all of the cost. There are many ways to perform brand partnerships and I’m happy to say that it appears that, again, we will be putting two great brands together to generate sales lift.