New Marketing Support
01 September 2010
For some small companies, there can be real potential to increase sales and profits by joining forces to market and distribute goods. This can work well for companies in a geographical area or whose products are complementary.
Recently, four Scottish companies which were keen to explore how they could improve their access to markets set up a marketing and distribution venture, Wholesome Whole Foods Scotland. The companies - Ella Drinks, Ola Oils, Isabella's Preserves and Tilquhillie Fine Foods- have pooled resources in marketing and distribution to increase profits.
C2 worked with the companies over 12 months and brought in an expert in marketing and the specialist food sector, to help them look at improving sales. We helped them to drill down to all the costs and benefits associated with the venture. We also helped them to think through how to set up the venture before they decided to form a co-operative.
Anne Thomson, of Ella Drinks says: "Developing the joint marketing venture among the four companies was an intensive process and one which required a lot of commitment from all of us. It was very helpful to have the C2 team and John Richardson from JBR to lead us through the procedure and assist us to work out the potential business benefits and the best mechanism for achieving this."
C2 has now developed a marketing analysis tool which can help you to begin to work out whether a similar approach could be right for your business. The tool analyses potential costs and overheads, such as additional transport or storage, and produces a five year plan and cashflow analysis based on an agreed margin or mark-up. The figures used are estimates, but it will help you see whether there is potential for an increase in profits which is enough to mitigate any risks. Our team will take you through the process.
If you would like to talk to someone about marketing and distribution, then please contact us at info@ctwo.org.uk or call 07799 450792.
