When done right, a co-branding effort is a mutually beneficial partnership that amplifies the distinctions and the synergy of both brands while creating value for customers. The Southwest and Looptworks’ co-branded luggage project is an excellent example of a match made in heaven.

To conserve fuel, Southwest upgraded their seats to a lighter weight material. The airline teamed up with the Portland-based boutique upcyclier, LOOPTWORKS to re-purpose the retired seat leather into high-end, co-branded, echo-friendly “bags that enable further journeys”.

Check out the video: http://vimeo.com/109640169

The small purpose-driven, Portland Oregon company that transforms “high-quality, unused material” into “limited edition, hand-numbered goods” should be soaring on cloud 9 over this pairing of equal missions. In co-branding efforts, the smaller organization typically benefits from the size, scope and reach of the larger partner. Looptworks stands to gain international brand awareness, credibility, B2B brand preference on future projects, as well as benefiting from the sale of the bags themselves. So, what makes Looptworks a right-fit partner for Southwest?

Southwest underwent a brand evolution in 2014 that re-positioned the airline from “The Low Fare” option to a travel partner with “Heart”.The position gives new life to Southwest’s “feel the love” personality as well as 80,000 leather seat covers with a partner in the business of  “re-purpose with purpose”. Southwest’s co-branded effort with Looptworks has been dubbed the LUV Project. Both the conscientious cabin redesign and the luggage Project have generated considerable media attention for Southwest’s heart warming brand direction and echo decision.

As Southwest’s fleet has grown, and fuel costs have risen, Southwest began to lose its hold on its market position as “the low fare airline.” According to Forbes, Southwest’s fares have been rising far faster than any other airline. From 2009 to 2014, Southwest saw an inflation-adjusted fare increase of 21%. The airline with the second highest increase was Alaskan Airways- which only saw a 14% increase. Southwest’s fares are competitively similar to other top tier airlines now. The “hearty” new position frees the brand to cope with the pressing operational challenge: how to keep quality high while managing the Southwest experience. 

By offering luxury, hand-made, sustainable, boutique designed, American made, upcycled products with a lifetime guarantee, Looptworks offers something that low-fares can’t. Looptworks differentiates on quality and heart, and positions itself as a high quality option worth paying for, rather than differentiating on price. Rather than offering affordable re-purposed bags to budget travelers, Southwest’s seats were re-designed and positioned as “a bag collection worthy of your next adventure.” As if that isn't enough, the LUV Project partnered with a nonprofit to train and employ disabled adults in the process of cleaning and deconstructing the leather before it was re-purposed.

As a strategic partner, Looptworks has vividly supported Southwest’s re-position away from “low fare” towards a more humanized, sustainable and quality-centered position with a tangible product that is meaningful enough to stick in our own hearts and impressive enough to capture considerable media attention.

The limited-edition, hand numbered, co-branded LUV Project bags range from $150 to $250, which is just  about the price of an average one-way Southwest fare. 

A few best practices for getting your co-branding partnership right:

The Partnership has to Obviously Represent Both Brands

Every co-branding effort should vigorously express both brands. If the partnership doesn't symbolize the best of both brand’s values or the purpose of each contributor then the match isn't likely a right fit for co-branding.

2. The Relationship has to Clearly Make Sense to Customers

When Sherwin-Williams and the Pottery Barn teamed up to create an interior paint color palette to compliment the furnishings in each seasonal Pottery Barn catalog, it just made sense.  If the pairing seems random, or its benefit to customers feels like a stretch, the idea probably doesn't work for a co-branding relationship.

3. The Synergy has to be Mutually Beneficial

A co-branding effort should positively contribute to the brand value, awareness, experience, communities and equity of both brands. Mutually beneficial doesn't necessarily mean equally beneficial. When a smaller organization partners with a larger one, the smaller organization tends to reap more substantial benefits than the larger partner, in part because it takes less to move the needle for a smaller organization.