Co-Operative Marketing.: by Ashay Vyas Ankesh Nikki Pun

Co-operative marketing.
By Ashay vyas
Ankesh
Nikki pun
What is co-operative marketing?
Basically co-operative marketing is a customized

joint efforts from the manufacturing sides as
well as from the retailer side to establish
mutually satisfying balance between price &
image in the market.
• Co-operative marketing integrates
manufacturer & retailers.
• Challenge face by manufacturer & retailers

for co-operative marketing.
1. Manufacture Perspective
2. Retail Perspective.
Beside all this facilities manufacturer
provides facilities like:-
• Special Packaging
• Cooking Classes
• Fashion Shows
• Incentive Programs for sales associates
• Loyalty programs.
Strategic Adopted By P&G
• Cutting Back promotions such as coupons,
refund offers, premium
• Conducting more research to better
understand & respond to consumer needs.
• Building strong partnership with retailers.
• Developing more co-operative marketing
programme with retailers through dedicated
marketing team In the field set upto partner
with retailer & understand needs of local
market
Why it is Important?
• Some marketers believe that traditional
mass media are loosing effectiveness as
consumers are expose to an increasing
number of traditional advertising message.
• Co-op marketing efforts are easy to
measure.
• Cut throat competition in the market.
• Data from retailers are used for R&D
purpose by the MNC.
OJECTIVE OF CO-MARKETING
• Help the manufactures to designed drive channel
& retailer support.
• Co-marketing integrates manufactures need’s.
• Helps retailers & manufactures to create

promotions.
• It helps the retailers to create brand image &

positioning.
BUILDING TRAFFIC.
• Retailers like popular brands because it attract
consumer.
• Therefore they use it as a loss leaders.
• But for manufactures loss-leaders put them in a

dilemma.
• On one low price increase the sales volume.
• On the other hand it cheapen the brand image.

MAINTAINING BRAND CONSISTENCY
• Building their store brand.
• Generating store traffic by carrying & featuring

the brands their customer want.
• Enhancing their brand image by selling brands

that they can price lower than can competing
retailers or brands from marketers that offer
strong marketing support.
Cont……….
• Promoting entire categories such as jeans,
shoes, or laptops which means including
multiple brands and not favoring one brand
over another.
• Maximizing their overall profitability by

carrying & promoting the brands.
INTEGRATION & CUSTOMIZATION
• Co-marketing have become an organizational
challenge for manufacturer.
• From retailers point of view it has also

become challenging.
• Co-marketing helps the retailer to provide the

customer different scheme.
CO-MARKETING EFFECTIVENESS
CASE
NIKE AT THE FINISH LINE

Nike understands that the retail store is a vital link
in reaching consumers at the precise time & place
where they are making brand-purchasing decisions.
So they build retail marketing programs as part of
their communication mix to ensure delivery of
more consistent messages about the Nike brand &
products to the consumer.
Like many marketers, Nike provided retailers with
an annual co-op fund & seasonal co-op kits. The
co-op kit contains pre produced print ads & radio
spots consisted with the Nike brand image & can
be tagged with the retailer’s name.
 Finish Line, a mall-based retail chain, has over
500 stores nationwide.
Although Finish Line carries a wide variety of
name-brand athletic shoes & apparel, Nike
often accounts for more than 50% of Finish
Line product mix.
Finish Line’s target consumers are 19-year old
action-addicted collegiate students & maturing
adults wistfully recalling their college day.
Finish Line’s mission is “ To provide the best
selection of sport-inspired footwear, apparel &
accessories to the fit the fast culture of action-
addicted individuals.”
Using this mission statement as a foundation,
Cinco Design (a Portland-based firm) created a
co-marketing campaign that captured the
essence of Finish Line & Nike’s vital role in
Finish Line’s business & marketing.
Co-Marketing Objectives:
1. Support Nike’s brand perceptions as the
leader in exciting, stylish, innovative,
aggressive & high performance footwear,
apparel, & accessories for young, athletic
consumers among 65% of Finish Line
customers.
2. Create a competitive advantage for Finish
Line by establishing Finish Line as the
destination for Nike products among 85% of
target consumers.
3. Increase retail store traffic & Web traffic for
Finish Line by 20% during seasonal campaign.
4. Increase sales of Nike brand products through

Finish Line by 15% in one year, by
highlighting specific products each season.
Strategies adopted by them:
 The integrated campaign was designed to have a
long-term substantial theme & message that tied
uniquely to Finish Line while focusing on the
selection of the Nike products.
 So they created a campaign which was active,
fun, energetic & athletic keeping Nike products &
the Finish Line selection story front & center.
 The Finish Line campaign theme was “ Choose to
Play” which won the Retail Advertising &
Marketing Association’s award for the best retail
broadcast & print advertising campaigns.
Some of the steps which were taken:
 www.finishline.com & an e-mail campaign featuring
the “choose to play” theme was launched.
 30 second TV spots that ran on MTV,BH1,VH1,ESPN &
local market buys around American idol.
 Nike ensures consistent execution of in-store fixture &
point-of-sale materials as well as training of sales
associates on new products.
 Nike stories, athletes, & advertisements were featured
in Finish Line Magazine which had 1.5 million
customers.
 Direct mail targeted at current Finish Line customers.
Results through Co-Marketing :
 Overall sales of Nike brand products through Finish
Line stores increased by 20% during the first year.
 Retail traffic increased by 17%.
 Web traffic to finishline.com increased by 30-40%
during each seasonal campaign.
 FL customer tracking study showed that the
percentage of FL customers who see FL as the best
destination for Nike products increased from 20-62%
after one year.
 Calls to Finish Line store locator increased 200% +
following the first run of print advertising.
Our References
• Principles of Advertising & IMC
by Tom Duncan

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Co-operative marketing.

Basically co-operative marketing is a customized

• Challenge face by manufacturer & retailers

• Co-marketing integrates manufactures need’s.

• Helps retailers & manufactures to create

• It helps the retailers to create brand image &

• Therefore they use it as a loss leaders.

• But for manufactures loss-leaders put them in a

• On one low price increase the sales volume.

• On the other hand it cheapen the brand image.

• Building their store brand.

• Generating store traffic by carrying & featuring

• Enhancing their brand image by selling brands

• Maximizing their overall profitability by

• From retailers point of view it has also

• Co-marketing helps the retailer to provide the

NIKE AT THE FINISH LINE

4. Increase sales of Nike brand products through

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