Shrink Brand Alliances When They Contaminate

To strengthen the brand image of your store name, you might choose to develop a brand alliance, in which you associate your name with the names of one or more other retailers.
     There are different possibilities:

• Share physical facilities with another retailer. The names of both retailers appear on exterior and/or interior signage. It could be a store-within-a-store, where you lease out space or lease space.
• Become part of an advertising cooperative in which your store name appears along with others in media.
• Participate in cross-retailer marketing administered by a manufacturer.

     This third one comes to mind because of the recent decision of GM—General Motors Company—to discontinue the joint marketing of Chevrolet, Cadillac, Buick, and GMC vehicle repair services. Brandweek described the development as sending Mr. Goodwrench to the junkyard.
     The reason seems to be the uncertainty about the future of the individual dealership brands. After all, Pontiac is being phased out next month following a run of over eighty years under the GM umbrella. An alliance with a brand that is going extinct contaminates the image of reliability and perseverance vital to repair services.
     The concern is a variant of what happened a few months ago when, reportedly, there were Arco gasoline station retailers who considered removing the BP name and symbol from signage at their stations. The reason was the evil reputation British Petroleum had garnered after the Gulf oil spill.
     Consumer psychology research findings suggest that the Arco dealers would be better off shrinking the size of the name and logo than in eliminating them altogether. Similarly, there are advantages for the remaining GM brand retailers in maintaining some alliances, even if at a reduced level.
     In other circumstances, developing new brand alliances can be profitable. If you find yourself in those circumstances, researchers at University of Pittsburgh and University of Minnesota have a tip: Look for an alliance with a retail brand that provides products or services similar to what you do, but one with a brand image that includes strengths in areas where your brand image doesn’t. You’d expect, of course, that your partner will want your brand image to have strengths where theirs is less strong.
     Then once you form this new alliance, choose any brand character with care. The current Mr. Goodwrench is shown as on his knees. That’s not an image of strength.

Click below for more:
Project Your Brand Positively
Keep a Store-Within-A-Store Compatible
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