Case Study #3:

“Co-op Marketing”: Utilizing Your Channel Partners to Increase Sales

The Challenge

One of the largest producers of paints and coatings in the world was looking to boost sales. They decided to reach out to independent exterior wood and siding factory finishers across the United States to promote their products. They knew that the combination of the factory finishers’ expertise combined with their superior coatings would produce the most quality results for long-lasting exterior siding and trim.

The Program

The company chose to reward the contractors who were purchasing the coatings from the finishing companies.  The finishing companies offered the Reward Program to the contractors directly, and the contractors earned points per paint can purchased and through other special Bonus Points opportunities.

The factory finishers marketed the Rewards Program in their stores and on their own websites.  The paint company’s name and corporate logo was featured on the finishers’ websites as a preferred supplier and sponsor of the Program.

"Text Box: “finishing companies also realized increased sales because the contractors were motivated to purcahse all of their paint”The Results

The Programs were a huge success.  The contractors that participated in the Programs bought our company’s coating products over their competitors’ for all of their construction jobs during the season(s).  The finishing companies also realized increased sales because the contractors were motivated to purchase all of their paint and coating needs for all of their construction jobs from the participating dealers over other stores.

The Rewards Programs also gave our paint company an advantage in the industry because they were co-branded with a high-quality paint finishing process.  The co-marketing effort increased visibility, loyalty, and trust amongst the two partners; and, as a result, increased profits.  The Programs paid for themselves out of the increased sales generated.