It's About Building a Brand, Just Like Any
Other Business, The Bigger Your Brand ...
"the More Credibility, and the More Power You Will Have
in Terms of Pushing That Brand Forward in the Business
Cycle."
Does Co-op really build brands? In the survey of promotional allowance programs, conducted for NAPAA last spring by Trade One Marketing, 65.3% of the companies responding indicated they think co-op helps build brand name recognition. This finding suggests that manufacturers are moving away from the conventional wisdom that co-op only aids sell-through and has no role in brand building. Can co-op be effective in building brands?
According to Tim Cornillie, Vice President of National Marketing for the Television Bureau of Advertising, "Even if a Co-Op ad includes positioning messages about the product, it builds the brand by reinforcing overall brand messages. In contrast, ads that are only price-oriented are geared only for short-term results, and can actually harm the brand. It's essential that all marketing and sales activity work together."
According to Cornillie, "Brand building is a long-term process of conveying to the consumer all the reasons why a certain product is what we claim it is; often many of the product's benefits are emotional. When a manufacturer goes through the trouble to brand its products, it must stick by them in everything they do. And if they do, they will convince their customers that their products are worth what they charge for them, and the manufacturer will reap higher margins. If they allow price-item advertising, it undercuts their efforts to prove their brand's quality.
"The consumer has had many opportunities to choose against brands. In the early 1980's, retailers introduced generic products and private label goods, and they attracted some consumers. But the importance of brands to most consumers has stood out as a long-term trend. People want to know what they're buying, and they believe in manufacturers that offer them those assurances."
The change in attitude reflected in the recent NAPAA survey comes with the growth of Market Development Funs (MDF) in addition to accrual-based co-op programs. While accrual programs tended to support simple, straightforward promotions with little involvement between the retailer and the manufacturer, MDF programs initiate creative partnership marketing that is much more conducive to brand support. "Instead of just selling the product by the caseload, MDF programs have given the manufacturer the opportunity to work directly with the retailer to create a retail environment that best supports brand positioning. It can be a win-win solution for both sides, where the manufacturer's brand builds on the public trust of the retailer's brand. And they share the effort necessary to bring their message to their consumers," Cornillie suggested.
"There have been many examples of successful MDF
programs among the retailers we monitor," Cornillie
reported. "Virtually every identity campaign is
supported, at least in part, by their brands. The
retailers are very selective on who they work with and
how, and the results have been outstanding for both
sides. And for the
manufacturers, it represents an outstanding way to get
local market advertising coverage that few brands could
afford by themselves."
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For AM Salon Equipment, KTLLC Communications approached two main suppliers and negotiated on behalf to arrive at an opportunity to create Integrated Branding Guidelines for the van, online, and print opportunities.
Successful creative solutions are much closer than you might think. Email us today!
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KTLLC Communications
Keith Thorn, Creative Director
6777 Oxborough Court
Maryville, IL 62062
Direct Phone: (314) 484-0542
E-mail:
KeithThorn@KTLLC.net
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