A strategic partnership is an agreed upon alliance between two brands, usually formalized by one or more business contracts but is not a legal partnership in long term business relations. Typically two companies form a strategic partnership when each possesses one or more business assets that will help the other, but that each respective other does not wish to develop internally. A partnership with a brand that shares a similar consumer target allows the brand to leverage the fan base, and co-market on a reduced budget. Additionally, these partnerships may allow the brand to open new sales distribution channels and consumer base.
With a celebrity based strategic partnership, there is typically no fee paid to the production staff by the brand, as the benefit to the production is the opportunity to reach new consumers through the brand’s marketing efforts and current advertising budget planned during the time of the production’s release.