Bauer Power

Brandweek, July 5, 1999 by Jeff Green

In 1983, Edsel Ford II, at the time the marketing plan manager of Ford Motor's Ford division, conducted marketing research that suggested a relationship with the Eddie Bauer apparel stores brand would reinforce Ford trucks' rugged image.

The resulting partnership launched Eddie Bauer versions of F-150 pickups, Aerostar minivans, Broncos, Bronco II's, Explorers and, most recently, Expeditions. Today, Edsel Ford's role may have diminished in the family business, but after 17 years and 16 model changes the marketing partnership he forged endures. The co-branding relationship produced the one millionth Eddie Bauer vehicle last week, and while nothing is permanent in marketing, both companies say they see nothing to prevent that figure from breaking the 2 million mark over the next half-dozen years. They are committed to a multi-year contract whose duration they declined to specifiy.

As it happens, the Eddie Bauer partnership is the most lasting of several such co-branding experiments that Ford Motor initiated in the early 1980s. They included a Mercury Villager co-branded with New York clothier Nautica and phased out last July when the new 1999 minivan came out, and Bill Blass and Cartier versions of the Lincoln Town Car that were discontinued several years ago.

While Eddie Bauer was by no means the only outdoor clothing store Ford could have selected, it seemed a natural fit. "This wasn't a case of forced co-branding," said J.C. Collins Jr., Ford division sport/utility vehicle (SUV) brand manager. "This fit well with what our customers were interested in. We're not attracting a lot of people in extreme sports. Our consumers are into hunting, fishing, camping."

For Eddie Bauer, it was a chance to reach potential customers in areas where the company didn't have a retail presence, said Don Perinchief, vp-licensing and new business. The company jumped at the chance when Ford approached it, he said. The co-branded units sold since then amount to 1 million rolling billboards that give the retailer ongoing exposure across the country.

As for Ford, it was able to snag a solid outdoor image from a store with wide appeal and a good stable of retail locations. The carmaker now is selling about 150,000 Eddie Bauer versions of its sport/utility vehicles (SUVs) a year, with the Bauer units accounting for about 12% of Explorer sales and fully half of Expedition sales. The Expedition has brought an older, more affluent customer to the Eddie Bauer co-branding and a customer more inclined to actually use the vehicle in the outdoors. Customers of high-end Expeditions can opt for the Bauer trim upgrade or the flashier, chromier XLT, enabling it to reach two very different psychographics. Customers seem to intuitively understand which one is for them.

In their active marketing of the relationship, however, the two partners have been disciplined. Eddie Bauer Fords have been a frequent feature in point-of-purchase promotions at the retailer's more than 600 stores, as well as in the company's catalogue, guaranteeing that tens of millions of customers obtain at least one Ford impression each quarter, Perinchief said. The company also uses an Eddie Bauer Ford in a four-page print insertion each fall to unveil its new line.

While Eddie Bauer doesn't participate in the actual vehicle design, Ford designers borrow heavily from Eddie Bauer design cues for the color and trim choices. The Eddie Bauer version of the Explorer and Expedition models are full-featured, making them much better equipped than the entry models but still allowing some differentiation for the upscale XLT and Limited versions of the SUVs.

Perhaps surprisingly, Eddie Bauer does not have any direct veto power over Ford's design of the co-branded vehicles. "We're outdoor apparel people and they're the car guys. We let the experts do their job," Perinchief said. "The nice thing about a long-term relationship like this is that we understand each other and they know who we are and it's never come to any sort of head-on objection to their designs." Thus, while the prairie tan color used in trim and some interior elements is a signature Bauer color, the retailer did not insist on its use. Conversely, Eddie Bauer would never be a bright metallic company and Ford would never suggest that for an Eddie Bauer model, Perinchief said.

Ford execs believe they benefit from the fact that the two demos are not an exact match. In fact, the Eddie Bauer customer tends to be a little older and more affluent than the typical SUV purchaser, said Doug Scott, Ford Explorer brand manager. "Eddie Bauer simply helps us reinforce the reputation of our SUVs," he said. "This is an effective way to use our SUV in traditional marketing. It's as much about image as it is about function."

While Eddie Bauer can't quantify the benefits of the relationship, Perinchief said he has no doubts the chain's exposure has been improved as a result. The mentions of the program that pop up in customer letters and during their store visits is testament to that.