PARTNER RELATIONSHIP MANAGEMENT- STRATEGIC PERSPECTIVE

Presented by-Parag Rastogi

Earning Partner’s Trust

• Current time is of economic uncertainty• What organizations want to do:– Expand reach and revenues– Minimize cost and risks by sharing sales related

responsibilitiesIs it so easy ….. As it sounds No, not at all…. It requires finesse

The concept-PRM

• To help address and manage such concerns, many companies are now launching more advanced partner relationship management (PRM) programs.

• Partner relationship management refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers

• PRM : business partners :: CRM : customers• The strategies, processes and software tools that

enable companies to organize and optimise their partner relations.

• The goal: to create a highly coordinated, “closed loop” system for ensuring marketing, sales and service success across the extended business ecosystem

Types of partnership

• ranges from flirtation / short term relationship/ ....marriage

• one project / loose reseller arrangement../ value-add / joint venture ... permanent - acquisition/merger!

• Different types of partnerships necessitate different strategies

• Partners inside the company is every function area interacting with customers

• Electronically• Cross-functional teams • Partners outside the company is how marketers

connect with their suppliers, channel partners, and competitors by developing partnerships

When to partner or do it by yourself

• Employee skills• Available assets• Superior processes• Cost• Differentiated offering• Protected niche

What partnering does??

• Partnering creates a – larger virtual organisation – more advantageous to capturing market share.

• Business goals and information must be shared. • Primary provider may reduce working capital,

some of this carried by partners.

hallmarks of PRM

• Alignment: Align sales, marketing and service policies, processes, relationships and technology to better support partners

• Incentives: Use the correct incentives to entice business partners to work with the PRM system and assume more customer-related responsibilities and costs

• Integration: Use dedicated PRM technology, integrated with internal and partner CRM and financial systems

• Segmentation: Rate partners based on actual performance and capabilities, then apportion leads accordingly

• Support: Support external sales teams through training, increased funding and by embedding internal marketing personnel

Best practices that companies should follow

• Revise business practices• Create clear rules• Select right technology then integrate• Entice partners to participate• Identify the best business partners

Advantages of PRM

• The idea of B2B PRM is not new….but why it is practiced– business taking advantage of the Internet, it makes

improved communication possible– business becoming more specialized in the services

they provide, it is creating a greater interdependency between businesses thus need for PRM applications

– products and suppliers located all across the globe, a better system for real-time communication was needed.

Role of partner relationship manager

• Decide what type of partnership is appropriate• Select best approach - management and

operations• Identify skills needed• Identify data needed• Some solutions are people intensive, others

depend heavily on IT

What I am going to deal????

• Affinity development or co-branding• Co-branding involves combining two or more

brands into a single product or service• Companies engage in co-branding to leverage

strong brand• A well executed co-branding strategy can lead to

win-win situation for both co-brand partners and can help in realizing unexplored markets or untapped opportunities.

Forms of co-branding

• Ingredient co-branding- Intel & HP• Same company co-branding- Tata • JV co-branding- examples later• Multiple sponsor co-branding-promotional events

Goals of co-branding

• Expanding customer base• To make financial benefits• Respond to the expressed and latent needs of

customers• To strengthen its competitive position• Introduce a new product with a strong image• Creating a new customer perceived value• To gain operational benefits

Co-branding Agreements

• In a co-branding alliance, both companies should have a relationship that has potential to be commercially beneficial to both parties.

• Co-branding agreement includes – rights, – obligations and – restrictions that are binding on both the parties.

• Agreement also explains about – marketing strategy, – brand specifications, – confidentiality issues, – licensing specifications, – warranties, – payments and royalties,– indemnification, disclaimers, term and termination.

Person involved in campaign must be very clear about these issue

Understood everything ????Some examples

Ryanair

• Lowest rental air carrier in Europe• Superb marketing mix

Where is PRM??Ryanair has collaboration with

Hertz car rentals-25% less chargesBCP- car parking facility at 26 airportsCheap hotels -73000 + in 71 countries

Pharma + Hospital

• Delhi based Panacea Biotec-a R&D company• Delhi based Umkal group- a multi-specialty

healthcare institution• Together established super-specialty hospital in

Gurgaon• Technical advantage

Kingfisher Airlines + American Express

• Launch India’s First Airline Corporate Charge Card Program

• A market-first, the American Express® Kingfisher Airlines Corporate Card  offers India-based companies an 8% rebate on Kingfisher Airlines air travel which is charged to the Card

• Also offer Card members an exclusive membership upgrade within the Kingfisher Airlines frequent flyer program - King Club.

Kingfisher Airlines + Disney

• Disney merchandise on-board of Kingfisher• Books, toys, magazines, give-aways etc. to

keep children engaged.

BookmyShow+ Airtel

• Book my show( TV18 venture)- ticket booking portal

• Airtel- India’s largest telecom services provider• Airtel users can book ticket on Airtel WAPsite

Thank you