joint venture marketing
A joint venture opportunity may present itself when companies realize the value in pulling together to achieve similar goals. The reasons for creating a joint venture vary depending on the needs and strategies laid out. There are several companies struggling in all sectors of the economy that can benefit from working with each other.
Building their customer base and thus increasing their profits is the main reason former competitors join forces. Another reason may include a scenario when one company can provide excellent marketing strategies, but lack the capital or personnel resources to execute their ideas or maybe one company has the financial and personnel but lacks the ability to properly market their product or service to a specific target market.
Building and construction industry
The construction of a commercial property usually involves different companies forming a joint venture. The strength of each partner is spotlighted during different phases of the project. First, they invite one or more partners because of their experience in securing the necessary financing. Then two or more companies may guide the development and construction of the building(s). During this time, one company may establish a leadership role managing the architects, engineering, and all elements of the indoor and outdoor design. Meanwhile, they might hire a property management company, or maybe bring a third joint venture partner on board for the final phase of the project. The building and construction of commercial property industry are at the forefront of creatively using joint venture opportunities.
The stakeholders involved in the travel sector today often service niche markets. By coming together to provide services, which complement each other, the partners can improve their opportunities for growth. Travel agencies, airlines, hotels, transport services, tourist destination sites are a few segments of the travel industry consistently seeking joint venture opportunities. The relationship can assist in reducing costs of advertising. As a result, they can offer discounts or features their direct competitors are lacking.
For example, in recent years two popular tourist trends have emerged: the mature travellers and those who stay closer to home to enjoy “staycations”. The tourism and convention bureau in a city or state may actively seek a joint venture opportunity with agencies focusing on these market segments. The bureau can give insider information regarding the advantages of a community, while the travel agency understands how to get the message out to a national or international audience.
Entertainment and event organizers
Event and entertainment organizers are sometimes small firms struggling to attract customers. A joint venture between the various service providers allows each to focus on what they do best. For weddings, a florist and caterer partnering is a natural fit. A wedding planner perhaps may choose to share marketing costs with unique venues for the ceremony or reception. Other possible joint venture opportunities exist between audiovisual service providers, photographers, musicians, and limo companies.
As noted by the examples above, joint venture opportunities can easily emerge from within specific industries but they can also be formed between seemingly unrelated markets. For example, “Destination Weddings” have become increasingly popular in recent years. A wedding planner for instance might form a partnership with a travel agency to increase their marketing reach. The “Destination Wedding” planner can then provide services and features that stand out from the majority of their competitors with the aid of their travel agent partner.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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