The supermarket shelves are awash with collaborations as brands join forces to create new experiences for consumers. Some are inspired successes and others should never have seen the light of day. The latest innovations include Donut King cinnamon flavoured Twisties, Green Tea KitKat and a Carman’s Violet Crumble protein bar. I still have nightmares about the Vegemite chocolate that was thankfully withdrawn quickly. And don’t get me started on the multiple dog cross breeds- beagliers, bernedoodles, dorgis and more. Somewhere there’s a poodle anxious about who they’ll have to mate with next.
Some collaborations make sense but others can destroy value for both organisations. Just because you can collaborate doesn’t mean that it will add value or make sense for your organisation or audiences. When you’re exploring a partnership, consider these 3 core principles to weigh up the opportunity.
Identity and reputation
A good partnership must have alignment with your identity, value and reputation. Importantly, your audiences and customers must understand that alignment or the dissonance will attract unfavourable responses. When Heart Foundation gave a tick of approval to McDonald’s, albeit for their salad range, it caused a firestorm of protest. Heart health and junk food don’t mix well and the reputation of the Foundation suffered. Similarly the partnership between the McGrath foundation and Jim Barry Wines is risky when alcohol is a known carcinogen.
In brand alliances a good partnership can lead to a 28% return on investment, far exceeding the 18% yield on marketing activities alone. The upside for corporate brands is very attractive, but a non-profit partner needs to take a careful look at the fit for their own identify and reputation. When in doubt, trial it on a focus group of your committed supporters first, as internal group think and the lure of a big dollar commitment can cloud the evaluation.
Purpose and impact
Clarity on the purpose and impact of the collaboration will help you evaluate the return for your effort and the value for the communities you serve. Setting a shared partnership vision will elevate the ambition for the partnership and challenge each partner to stretch further. When Boots UK partnered with Macmillan Cancer Support they wanted to have cancer advice available in every high street in Britain. Decjuba Foundation has an ambition to positively impact 25 million lives by 2025. Consider how the partnership will change the story for your beneficiaries and communities and don’t be tempted to create a new program that wasn’t part of your core mission.
Boundaries and exchange
Every great partnership should have clear boundaries about what’s in and what’s out. The expectations need to be embedded in the contract and clearly communicated to all parties. When an animal charity working in remote indigenous communities partnered with a pharmaceutical company, they received valuable donations of animal medications. Unfortunately, no-one had thought to ask about transport and logistic costs, which are especially high for remote locations. The team spent weeks and hard earned funds getting the products to the right destinations as the costs had not been included in the partnership negotiations. Setting boundaries for what is included and expected in the partnership and the true exchange of value is critically important. Otherwise, the partnership could end up costing you more than you think and the corporate partner may not have budgeted for the full costs of their commitment.
You’d like a partnership that makes sense for your brand identity, communities and effort. You don’t want an alliance that goes down like Vegemite chocolate or wasabi KitKat. Being aware of the key principles will encourage you to sharpen your partnership conversations before you make the final decision.