Tesco has launched a co-marketing promotional deal with several brands including Nescafe and Heinz. Unlike typical discounts on gas, which require shoppers to spend a certain amount before they are eligible for cents off, this United Kingdom grocery retailer rewards shoppers with 10p off of a liter of gas for each participating product they buy. The list includes Robinson's Double Concentrate, Nescafe Original, Andrex toilet tissue, Fairy Non-Bio washing powder and a range of Heinz products. The discounts can be combined to offer up to 50p off per liter, a significant savings. Tesco calls it the "unbeatable" promotion since it gives shoppers gas at prices at 2008 levels.
This is a great example of a co-marketing promotion that transcends individual brands in favor of a retailer's need for increased traffic. In particular, the linking of the sale of specific products to the amount of a discount is compelling. The retailer has spread the cost of the promotion across several manufacturers, optimizing the savings to the shopper. Look for ways to pair purchase of your brands to a retailer's objective, perhaps a store-branded product or service. By bringing the power of your brand to a promotion, you are showing the retailer that you are willing to partner up for the good of both companies. In turn, the retailer may give you special consideration as you negotiate trade deals.
"Tesco Fuels Petrol War with Brand Deal," Marketing Week," 7/23/12 www.marketingweek.co.uk/news/tesco-fuels-petrol-war-with-brand-deal/4002867.article