Effectively Using Joint Venture Marketing to Grow Your Business

During the 1950s, Simplot researchers developed a method to freeze french fries, and the new engine that would propel the J.R. Simplot Company’s growth. Simplot, once a very small business with only a potatoes sorter, made great gains in the 1960s. During that decade, the company developed a partnership with Ray Kroc, a fast-food operator who became the single most important person in Simplot’s business dealings. The fast-food chain Kroc founded was none other than McDonald’s, which had a nearly insatiable need for the frozen french fries first developed by the J.R. Simplot Company a decade earlier. Simplot would go on to become the single largest supplier of frozen french fries to the massive hamburger chain.

Right Partner with the Right Connections

Having the right partner in a joint venture can effectively grow your business. If your company partners with another company that has a diversified consumer base than your own, you will able to beat your competition by selling to a larger target audience. You may be able to use your venture partner’s customer database to market your product, or offer your partner’s services and products to your existing customers. Your company can exchange endorsements with your partners companies, which will be featured in newspapers, on the Internet or on television. When entering into a joint venture marketing agreement with a reputable company, you will add more credibility to your business and gain potential customers’ trust in your company and products or services.

Building on their success in the past with join ventures, in July 2009, the J. R. Simplot Company and Agri-Trend Data Corp. announced a new joint-venture company called U.S. Agri-Data Solutions LLC (USADS) to deliver their proprietary Agri-Data Solution NetWare platform to agricultural producers and processors in the United States.

Shared Expenses, Greater Profit

Joint ventures often enable growth without having to borrow funds or to look for outside investors. When having a partner to share expenses with it will help your business grow faster, increase productivity and generate greater profits. A successful joint venture can offer access to new markets and distribution network, increase capacity, sharing of risks and costs with a partner.

In 2003, the Simplot opened a new state-of-the-art French fry plant in Manitoba in order to capitalize on the economic advantages the region had to offer, including the lucrative exchange rate between the U.S. and Canadian dollars.

Better Research and Development

An effective joint venture allows access to better research and development because the two companies can pool their resources in those areas which means less outsourcing while still enjoying a significant reduction in expenses. When developing a product or marketing and existing product, research and time put into a product means a better product. Better product development means your company will not have as many returns of the product from retailers or customers, in short more profit for your venture.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Reinventing Your Company Through Joint Venture Marketing

In a marketplace where being noticed is an extremely difficult feat, many small companies are joining forces to create better products to get ahead of the competition. An example of this is Sony-Ericsson, a joint venture between the Japanese-owned electronics company, Sony, and the Swedish-based telecommunications company, Ericsson, which makes mobile phones. Each company agreed to stop making its own separate brand of phone in order to combine Sony’s electronics knowledge with Ericsson’s technological advances in communications to produce a better quality of phone.

Finding the Right Partner

In order for joint venture marketing between two companies to be effective, both companies need to have the same goals for the venture. Before entering into a JV partnership, do the proper research on the potential partner. Make sure they can offer your company what you’re looking for from a joint venture. By joining hands with a larger, non-competitive business partner, the larger business can offer the smaller business highly valuable assets and a more extensive consumer base potentially interested in your products or services. Small businesses can save thousands of dollars in marketing expenses but still reach their targeted audience. Identifying non-competing companies that serve a consumer base similar to yours is essential.

Surpass the Competition

Developing a product or having a product for your new joint venture that stands out among your competitors will be crucial to the success of your alliance. Pooling your research and development efforts with your partners to make sure your product can compete with your competition is a good place to start. Use all available resources to make your product marketable to the targeted audience. This will only increase profit margins and make your product or service stand out from the pack.

Cutting Costs

A small business wanting to get noticed in a huge marketplace can be expensive. When small businesses partner up in a joint venture the costs are cut in half, which means more profit for the companies because they are not shouldering the entire cost of marketing, research and development.

New Company

By using all the resources available to your company in a joint venture, your business and your JV partner may decide to form a new company. Many of the companies we know today were once joint ventures between two companies trying to get ahead of their competitors. Cell phone provider Cingular was a joint venture between SBC and BellSouth. SBC bought AT&T, renaming itself AT&T, and then bought BellSouth, Cingular is now AT&T Wireless.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Good Business Decisions That Make A Joint Venture Partnership Work

Nearly 70 percent of all joint venture partnerships fail for a variety of reasons ranging from starting off on the wrong foot, to complex ideology issues. Not every venture can be a success as there are risks involved with any business opportunity. However; with some basic steps in place during startup and a little preparation you’ll be well on your way to creating your first successful joint venture marketing campaign.

Smart Decisions

Many joint venture mistakes are made out of desperation by businesses that need additional capital or some other kind of resource to launch their new product or service. Picking the wrong partner can be worse than having no help at all, so it’s important that a company knows what to look for when choosing the ideal JV partner. Finding a partner who is targeting the same audience as yours is a good start. Researching their past joint ventures is also a good idea. If possible, learn if they’ve had other failed attempts and why they failed. Always keep in mind a good JV marketing partnership is one where both companies can equally extend their reach and increase their profits.

Leadership and Agreements

Another common reason joint ventures fail is improper leadership. When a company drafts a joint venture marketing agreement, they need to make sure the leadership roles of the venture are clearly defined. Without proper leadership, a joint venture will fail the same as any other business venture. In a perfect agreement, both companies bring valuable resources to the table. Smaller businesses usually have far less margin for error than multinational corporations do, or even mid-sized companies. Some experts recommend business owners consider joint venture marketing with another company to launch a small idea first. Such small projects will allow companies to test the relationship without committing large amounts of money or resources.

Product Detail

A company needs to have a valuable product or service that will generate profits. If the product or service is not strong, ROI will not be high because it’s not worth what the consumer paid for it, which in-turn will cut into the company’s profits. This will also weaken the joint venture partnership due to lack of profit and a bad reputation for all companies involved. Make sure a well thought out and researched product or service is marketed to avoid inevitable failure.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Tips For Small Businesses Using Joint Venture Partnerships

According to Hot Growth, a list of America’s fastest-growing small companies, several of the most popular online auction and technology corporations are now billion dollar companies. Past list members who have graduated to the big time include Abercrombie & Fitch, Whole Foods Market, Cisco Systems, eBay, and Apollo Group.

So as you can see these household names started out small and joint venture marketing has been a key factor in their success. A few suggestions include:

Making a proposal

Try not to aim too high with your offers even though it is tempting. As a small business, target your offer to another small company with complimentary but not competing services. Establish successful joint ventures with small companies which will get your business noticed by the bigger more powerful ones. A reputation as a solid business owner who knows how to turn joint ventures into gold for their partners will benefit you in many ways. Businesses naturally gravitate towards other successful businesses. Advertise your company by announcing joint ventures through press releases and articles in trade magazines. The competition will quickly become aware of your presence, as your business expands and there’s a chance that powerful companies might come up with proposals to joining forces with your company.

Decisions that Make Sense

Research companies that are aimed at the same audience your business is trying to reach. When choosing a joint venture partner company look for things like, do they have joint venture agreements with your competitors? Does your potential partner have other joint ventures that did not work out, if so why not? You should make sure your company and the potential partner companies have similar goals for this agreement.

Agreements and Contribution Plans

Dividing everything 50/50 and seeing your partner as your equal is a great way to do business but it may create problems when a decision is needed and both parties cannot see eye-to-eye. If these problems are worked out ahead of time in the agreement, it will save time later. The agreement should also specify a way to unwind or even exit the joint venture if deadlocks cannot be broken. Similarly, both parties should work out a clear contribution plan, which clarifies both who invested what and who is required to put additional cash into the venture moving forward.

Take careful consideration when choosing a joint venture business partner. Make sure to research all possible partners, aim your proposal to other small companies first and let the big ones come to you after, making a successful reputation.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Joint Venture Marketing is the Right Prescription for Pharmaceutical Companies

Each year pharmaceutical companies spend billions on marketing, advertising and partnerships. They enter into these agreements in hopes they will improve their bottom line. Whether the venture is sponsorship, research outsourcing or directly to the consumer, the end result is the same, effective marketing techniques create revenue.

Funding Research Project

The world’s largest drug maker, Pfizer announced in November of 2010 a sponsorship deal with University of California San Francisco (UCSF) to develop new biologic treatments. Pfizer agreed to set up joint laboratories on campus, combining the basic research expertise at UCSF with Pfizer’s knowledge of drug development. UCSF researchers will benefit because they will be allowed to publish their findings in academic journals. The university will also share with Pfizer the ownership rights to the new drugs, which will mean millions for the school. Pfizer, like many pharmaceutical companies, has been affected by the economic downturn of the past couple years which have caused venture capitalists to turn more cautious. The venture capitalists are now often requiring more and more evidence from scientific entrepreneurs, including university faculty, before they will consider financing promising new therapies through clinical trials.

Direct to Consumers

Have you seen Avandia logos on pens and notepads at your physician’s office? Or been given a free sample of Os-Cal Ultra 600+ D to try? Those items are freebies given to the physician’s office by the GlaxoSmithKline pharmaceutical company to get physicians to prescribe their brand of medications to you. Both the physician and the GlaxoSmithKline Company benefit from you taking that specific medication. Another example of marketing that is direct to consumers is Merck & Co., they are taking big measures to boost sales of newer and brand-name drugs while addressing patient adherence concerns by stepping up “loyalty card” programs, receive in mail or e-mail coupons and rebates. The proliferation of discounts on certain prescription medications is gaining traction, observers say, because they enable patients to reduce out-of-pocket costs.

Sponsorship

The Johnson & Johnson Company, which produce health care products, sponsor youth softball programs. Johnson & Johnson has the opportunity to promote products to their target audience, the parents, as well as help out the communities by funding youth sports programs. They hand out first aid kits during games as needed or sunscreen on hot sunny days, the consumer will see the products and become aware of what the company has to offer.

Some pharmaceutical companies like Eli Lilly take sponsorship into the professional sports arena. Eli Lilly and the PGA Tour announced a partnership in November of 2003. To support the partnership the companies developed a series of golf-themed vignettes featuring some of golf’s top players. The vignettes focused primarily on the emotional connection to the game with themes such as relaxation, preparation and confidence. The agreement also included an on-site component; whereby Eli Lilly joined MasterCard(R) as a sponsor of the electronic scoreboards at PGA TOUR and Champions Tour events. A partnership with the PGA TOUR allowed Eli Lilly to connect with millions of golf fans, many of whom enjoy golf because it is both relaxing and invigorating.

Naturally most small businesses do not have the same level of marketing dollars; however the principles related to joint venture marketing are the same at any budget level.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Joint Venture Marketing: A Success for the Education Industry

Education has always been a pillar of strength upon which society rests. Although the education industry has evolved, the concept remains the same: providing the next generation with the right tools of knowledge and morals to move society a step forward.

Over the years, the education industry has evolved to where profits and balance sheets matter as much as the quality education and the right infrastructure. In an ever growing world, with opportunities increasing every day, providing the right kind of infrastructure is costly. So, for a higher education institute to live up to the standards it aspires, it needs an inflow of students and financial support from alumni, the business community and government. In order to have students, the right kind of exposure in the high demand fields is essential. Advertising and marketing, which are very burdensome to the bottom-line generally, can be aided through the use of joint venture marketing.

Captive audience

Various companies reap significant benefits from a joint venture with an academic institute. Computer and software companies and other high tech companies partner with various institutions and offer their products at lower rates, resulting in an upswing in their share of market. This is beneficial for companies seeking a captive market of students and faculty, who appreciate the access to low cost equipment or software guaranteeing a steady volume of sales. The companies enjoy an opportunity to build brand loyalty with future shoppers (college students).

There are numerous examples of joint venture marketing with college institutions with well-known brands. For years Microsoft has offered software very cheap to enrolled college students and this year Apple has heavily marketing a special discount for college students on their popular laptops. Banks also offer loans at lower interest rates to students and of course the somewhat controversial credit card offers has gone on for over 20 years.

In the real world

Recently, Google and the British library embarked on a project to digitize and publish hundreds of books previously unavailable online. This partnership will bring a wealth of never before seen information out into the digital world. It might not lead to any direct profits, but the availability of the information is tremendous for readers around the world. Google gets the chance to earn high marks for corporate citizenship.

There are various government agencies and non-profit organizations who partner with companies to provide grants for research and scholarships. They do their bit for society and they even earn publicity for it. This results in the colleges becoming an integral part of the company’s research and development for new products efforts and scientific discoveries.

Institutes have shown great success with partnerships with foreign universities and colleges giving them global exposure and international presence. One example of a technological partnership is Dell. They have academic affiliations with various universities across the nation and world. The company actively recruits from the best institutes as well.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Attracting Potential Joint Venture Marketing Partners

Joint ventures require a great deal of trust on both sides, particularly when small businesses are involved. They do not have the resources – financial or otherwise – to dive into a lengthy legal battle if things do not work out. This makes it critical that you attract the right partner.

Transparency, is the first step to success

In an effort to achieve your goals, keeping relevant matters and deals related to the potential partnership transparent are important. Each side should be fully informed regarding anything going on in your company that could have potential impact on the partnership. Everyone should feel free to ask questions or offer suggestions for improvement. Also, there should be room for critical analysis by either party. The environment of your workplace should give a feeling of equality to every partner. This environment will help attract the right people; in fact it should be a red flag if the other side is extremely closed mouth about matters you feel are important. Keep financial matters clear and open, it will help make both sides feel secure working together.

Stand behind your words

Before making any statement, think it through, but after that stand behind it. This is something what will help establish and maintain a great degree of trust needed when forming a joint venture partnership. Both sides will have confidence they can trust you to do business together and attract clients. In fact, if all goes well, even after the joint venture is over, the goodwill engendered could lead to recommendations from your former partner.

Listen peacefully, reply thoughtfully

Be prepared for differences because there will be differences.

It’s important to listen and try to understand what your partner is conveying. After listening, identify the areas of concern and then you can begin to work together toward a solution, calmly and without accusation.  Gain their confidence by sharing your experiences and expertise without being overbearing.

Work on Time, Pay on time.

If your company has the habit of working on time, you will be attractive to everyone. You should work on time for your clients, and pay on time.

Don’t be greedy

This is one of the key points. If your partner sends his client to you, do your best for them. But don’t lure them from their original provider. If they decide they would like to use your services on their own that’s another matter. Just make sure your hands are clean or you’ll lose your good name. This way your partner will not hesitate in sending their clients to you for help.

If you follow the few suggestions mentioned here, you will surely be able to attract the right partners for a joint venture opportunity.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Commercial Real Estate Joint Ventures: A Profitable Enterprise

A joint venture is a business agreement in which parties agree to work together on a project sharing assets toward a common goal. Commercial real estate investment is a fairly commonplace joint venture in the marketplace. Together two or more companies can combine their resources – everything from finances, marketing, technology and staff – to develop and manage a profitable commercial real estate property such as a shopping center or office building.

The two or more companies involved in the agreement share control over construction, marketing and management and other related expenses. The partners, while sharing risks, are also able to legally keep this particular business venture separate from the rest of their organization.

There are several advantages for entering into commercial real estate joint ventures. First, it allows companies to gain access to capital which is tight in today’s economy. Also, one company may have more management related expertise than money and this allows them to continue to grow.

The challenges of the joint ventures include the amount of time required to build the right kind of relationship.  Integration can also take time as employees bring in different cultures and expectations into the venture. But the advantages far outweigh the risks involved and many companies in America are taking the plunge into such ventures.

If they build it, will the shoppers come?

Recently, Tanger Factory Outlet Centers, Inc., (NYSE:SKT) and Simon Property Group, Inc., (NYSE:SPG) announced a 50/50 joint venture agreement for the development, construction, leasing and management of a Tanger Outlet Center south of Houston, Texas.

The Tanger Outlets will be located in Texas City, TX which is approximately 30 miles south of Houston and 20 miles north of Galveston. The area receives an estimated 100,000 vehicles per day near the anticipated location Exit 17 of Interstate 45 at Holland Road. The center is expected to feature over 90 brand names and designer outlet stores when the first phase of approximately 350,000 square feet is completed. Tanger and Simon separately have a strong reputation throughout Texas and experts see this as a good marriage.

Steven B. Tanger, President and Chief Executive Officer of Tanger Outlet Centers, Inc., commented, “The opportunity to build a Tanger Outlet Center south of Houston makes perfect sense. Our partnership with Simon will provide our retail partners with what we believe are the best location and strongest development. When built, we will offer residents and visitors to this region one of the nation’s best brand name and designer outlet shopping centers with today’s style and fashion trends at the best values every day.”

Another company Worldwide Realty Corporation, the real estate arm of Children of America, specializing is also asking for interest from other firms to get into a joint venture opportunity.

Just show me the money

Another common option are lenders with money available for investment, seeking what they see believe might be good investment opportunities without the headache of daily operations. Then they partner with construction and property management firms to locate, build and lease the properties on their behalf.

Still all about the money but no hard hats involved

This week Prudential Mortgage Capital Company and affiliated funds of Perella Weinberg Partners disclosed their plans to work together to originate commercial mortgages. This partnership taps into Prudential’s credit and finance expertise and Perella Weinberg Partners’ real estate lending and investing experience.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Why Joint Venture Marketing?

A joint venture is when two or more companies with the aim of working together align themselves in order to execute their business strategy aimed at the same target audience. It is well suited for a company just starting out or those seeking to expand their businesses. The need for a joint venture can arise at any stage in the life of the company. The question is who do you establish a business relationship with and is there need to establish a contractual understanding? Joint venture marketing has numerous advantages, a few of which we will examine today.

Building or expanding your customer base

New businesses with a relatively small customer base can benefit from a joint venture with an already established company. A larger and more established company can be a good adviser in efficiently building up the sales and eventually becoming established in the field. Recognizing that customers are the key to a company’s profits and eventual growth, a smart strategic alliance through joint venture marketing is a step in the right direction.

Loyalty to the brand name

Building a community around your brand name requires consumer confidence in your brand. It may not happen overnight but with time eventually the name becomes established. An endorsement by an already known and established partner often works like magic very well. Establishing a simple website on the internet and having the partnership of a known company will take your company to greater heights.

Great strategies but limited finances

A small establishment may have great business strategies and ideas which have the potential of bearing great profits but for now their potential exists only on paper. This business can greatly benefit from joint venture marketing. Sharing resources can lead to the expansion and growth of each business, thus increasing the revenue both partners can enjoy thanks to a larger customer base and valued business endorsements.

Introducing a new product with minimum risk

Introducing a new product line is a risk taking venture yet advantageous if well received in the market. The customer base in the joint venture offers a great starting point to test the product. A new product is a high risk on a small company as they risk losing the few customers they already have.

Maximized profits

Joint venture marketing means sharing of both profits and losses in their joint efforts. The cost of marketing reduces for each business as the cost is shared between the members. The members benefit from wide coverage in the local and international scenes expanding the brand visibility.

Diversified expertise

Technology is changing by the minute these days as companies such as Google and Facebook try to outdo each other. However, sharing ideas and bringing different specialists into the process benefits each of the companies in joint venture. Every company have their strong abilities and weak areas, but when their efforts are integrated they create a stronger foundation.

Joint venture marketing is a popular growth strategy adopted by many companies, both small and large. Many businesses occasionally stretch out their antennae seeking potential partners with similar goals but non-competing products. This minimizes the risks and maximizes the returns.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Joint Venture Marketing: An Alliance Between Service Providers

The proposal

Today, businesses can boost their bottom line while providing excellent services to their clients through joint venture marketing with a related non-competing business. The wedding industry offers several examples of this opportunity for growth through strategic partnerships. Wedding planners, photographers, florists and caterers, are just a few familiar examples of vendors able to grow their businesses through joint venture marketing.

A pre-nup?

However, given the fact the wedding industry relies heavily on a provider’s reputation, it is important you fully vet potential partners. You do not want to be judged guilty by association, avoid a potential partner seeking to reestablish their credibility based on the stellar reputation you have earned in the marketplace. Perhaps a potential partner’s roster or marketing budget does not equal yours, but you should make sure their reputation does.

A blissful engagement

Planning for her special day can be a rather stressful time for the bride, having a trusted resource is valuable during planning phase. Joint venture marketing with the right partners increases the perception of you as an indispensable resource. For instance, if a client enjoys working with their wedding caterer, they might be inclined to ask for recommendations for a photographer. A great wedding planner will have a contact list filled with suggestions for a florist or printer that will suit the wedding the couple have in mind. Nothing is more appreciated by a frazzled bride than the ability to cross off key decisions on her wedding planning checklist.

Another suggestion includes two or more vendors sharing a booth at a wedding show that is very popular prior to the kick-off of wedding season. A caterer and florist with a small marketing budget may find this is an excellent way to get their foot in the door at popular annual event which they may otherwise find cost prohibitive.

Perhaps instead of attending a crowded tradeshow joint venture partners perhaps might elect to share advertising costs of publishing an advertisement in a local popular wedding resource book. These are just a few possibilities wedding vendors can consider to grow their sales.

Collaboration can lead to one-stop shopping

The couple often leads hectic lives and coordinating meetings with florist, caterers, photographers, designers – the list goes on – is quite a challenge. However, if two or more of these vendors could a joint venture marketing partnership and present their ideas together.  The bride might find it reassuring to select two companies that work so well together and can create a cohesive vision. The bride’s planning is simplified and the vendors can grow their business while keeping their marketing costs in line.

The “I dos”

The big day comes and the wedding is beautiful. No one will sing your praises more than a bride and groom who felt not only were your services outstanding but so were the recommendations and alliances you brought to the party. After you have selected a joint venture marketing partner who shares your commitment to quality and customer service, the alliance can be an excellent way to your grow your wedding business.

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.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

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