by Christian Fea
Have you experienced frustration trying to capture a small percentage of the market share, but find your efforts thwarted by your competition time and time again? Perhaps you should try a new strategy. Create a strategic alliance in the form of a joint venture with a carefully chosen partner who can boost your momentum and increase your market share.
Joint ventures are a great way for individual businesses to share information, pool resources, and combine marketing efforts to sell products and/or services. With a solid strategy and marketing effort, you can effectively increase your market share in your industry, whether it is local, regional, or even national.
Main Types of JVs
Though the forms and formats of JVs are wide and varied, there are two main types that in which most JV partners engage.
A marketing JV is one where the JV partners form agreements to jointly sell, promote, or distribute products or services. With joint promotional efforts, you can effectively reduce your advertising budget since the marketing costs are shared between the partners. This gives you an advantage over the competition to advertise and sell more products.
Another popular form of JV is the alliance where two businesses come together to design and produce a product. By combining technology, production equipment, and intellectual property, the JV could produce a better product more efficiently than the partners could do alone.
Broaden Your Customer Base
How will you beat your competition? To win, you must sell more products or services -which means you need to find more customers. By forming a JV to either cross promote or produce a joint product, you also have access to a valuable database of customer contacts and a wider customer base. If you choose a JV partner wisely, you will consider the customer base that will accompany your choice.
Utilize the contacts from your JV partner to offer special deals to his customers. If you jointly produce a product, combine your mailing lists to engage both sets of previous customers. You may be pleasantly surprised to find that your customer base grows considerably just from exposure of your products to your JV partners typical customer base.
Other JV Benefits
Other benefits of a JV that can help you increase your market share could be any or all of the following:
- No new investment in infrastructure (resources are shared)
- Instant access to new markets
- Risk reduction
- Learn new skills
- Access to new technology
- Economies of scale
Your efforts to maintain and grow your market share don’t need to be wasted. If you have hit a plateau of sales increases, try a new strategy. Form a joint venture and leverage the power of combined resources and ideas. The risks for such an endeavor are generally few, and the benefits far outweigh the risks. Start your journey to capture more market share with a JV today.