An often overlooked yet powerful way to establish a brand’s positioning is its brand partnership strategy. Strategic partnerships with complimentary brands offer businesses a powerful avenue to fulfil their value proposition and brand promise made to customers.
“The greatest victory is that which requires no battle” - Sun Tzu, Art of War.
Strategic partnerships between brands ensures that victory through collaboration.
By aligning with other brands of similar or shared values businesses can:
Establish their positioning strongly
Tap into new markets
Enhance brand awareness or penetration, and ultimately
Deliver a more well-rounded and satisfying experience to their customers.
We can't talk about strategic partnerships and not mention the pioneer, NIKE!
Nike x Jordan
Nike's enduring partnership with the basketball legend Michael Jordan is a testament to the success of strategic alliances. This collaboration is now in the DNA of the brand which means it is extended beyond just marketing. Nike designed an entire product line called Air Jordans dedicated to this partnership.
The Air Jordan was designed by Nike in 1984 for Michael Jordan, who was then playing for the Chicago Bulls. It was designed by Peter Moore and became available publicly in 1985. Michael Jordan not only got paid for endorsing the brand, he also got into revenue-share for his line of shoes called Air Jordans.
How did Nike x Jordan help in brand positioning?
Increased Relatability: Nike tied up with Jordan when he was just starting out his NBA career. Jordan’s charisma, superior skills, high-flying athleticism and a determination to win at all costs in his basketball career impacted how Nike was seen as a brand and made the brand more relatable.
This was the starting point for sports marketing to become mainstream.
2. Established a ‘Hero’ Personality: Nike’s Air Jordan were designed in red and black whereas league policies made it mandatory for the shoes to have 51% white. This attracted a fine of $5000 fees. Nike embraced the controversy and the fines which outlined the personality of the brand as a non-conformist. It immediately resonated with the community that saw Jordan as their Hero and Nike became all about its heroes and hero-worship.
3. Engaging a Community beyond basketball: Nike became a fashion statement not just for athletes but also youngsters hooked to pop culture. Sneakers went from an athletic necessity to iconic casual wear. Air Jordans have been in TV shows and worn by global stars like Denzel Washington in movies.
Jordan’s impact on the basketball court also influenced hip-hop culture. His sneaker brand became a staple in streetwear culture, with hip-hop artists and celebrities wearing them in casual settings like Ice Cube, Jay Z who would also reference Jordans in their songs.
Through multiple product innovations, expansions, and continued collaborations, the Jordan team has turned the Jumpman silhouette into a sneaker icon worthy of Michael Jordan.
Nike and Michael Jordan were both new entrants in the arena of sports. But when they combined forces, they made a massive impact. The right partnership that can strategically help you scale your business is the key to long-term success.
We can’t think of another long-term strategic alliance that has worked as well as Nike x Jordan, but we found some attempts nationally and internationally which have shown promise for brand partnerships.
In India
Paytm x Uber
Uber and Paytm had joined forces to streamline the payment process for both riders and drivers. In India's booming mobile banking sector, Paytm stood out by providing UPI services to leading taxi cab aggregators like Ola and Uber. This move addressed banking limitations faced by Uber, fostering accessibility and market differentiation in the competitive landscape. The strategic integration contributed to the industry's dynamic growth.
Indigo x Mokobora
IndiGo started a collaborative product-line with Mokobara to create a custom line of luggage inspired by the IndiGo legacy and the signature blue colour. This partnership not only benefits Mokobara with eyeballs on their products but also gives IndiGo flyers additional benefits such as a 2 kg extra luggage allowance and free personalisation.
Internationally
Spotify x Starbucks
Spotify partnered up with Starbucks to provide Spotify Premium accounts to all Starbucks Partners. They could use this to get premium benefits and also discover what music is played at the Starbucks outlets. It is a successful partnership that is still ongoing.
Downsides of Strategic Partnerships
We have talked about what works in partnerships, but a good mental model of inversion will help understand what we shouldn’t do when moving ahead with a strategic partnership.
Shell x LEGO (USA)
Shell and LEGO were partner brands for nearly 50 years and LEGO co-created play sets that depicted automobiles and other drilling sets. However, in 2014 Greenpeace launched a massive campaign against this partnership because of Shell’s ongoing plans to drill in the Arctic for petro-chemical mining. LEGO had to eventually give up and stop the multi-million dollar deal.
Watch the campaign video that Greenpeace launched 9 years back here:
Everything is not awesome.
Strategic partnerships fail even after 50 years if the brand vision for the involved parties are not the same. While Lego and Shell and multi-billion dollar companies, their long term vision and the way they achieve their vision may not always walk the same ethical path.
Strategic brand partnerships have a significant impact on establishing and strengthening a brand's positioning. It makes new brands have a personality making it more relatable and accessible.
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