Marketing Collaboration Aids Companies
Breaking into a new market or acquiring new customers can prove difficult, particularly for small companies. It can often be easier if they join forces with other companies which are complementary to their business, non-competitors and have a common goal. Extending their supply chains in this way can add real value to companies in helping them to achieve scale. C2 has worked with four companies based in the North East of Scotland to help them identify the best ways in which they can join forces and reap real business benefits.
The companies were keen to explore how they could improve their access to markets in Scotland and the rest of the UK. With the assistance of C2, they have now established a marketing and distribution venture, Wholesome Whole Foods Scotland. Comprising Ella Drinks, Ola Oils, Isabella's Preserves and Tilquhillie Fine Foods, the group has pooled resources in marketing and distribution as a strategic move to increase turnover and profits.
Anne Thomson of Ella Drinks developed the idea of finding some like-minded businesses looking to improve their market share. They would require a shared strategic objective, targeting the independent store sector rather than multiples like supermarkets; they would need to have a similar business philosophy; and they would need to be of a similar size. They would also need to be in different produce sectors to avoid competition issues and producing ambient long shelf-life goods to facilitate central distribution, avoiding issues of chilled storage or transportation.
With the support of the C2 team, Anne set about contacting lots of companies in the North East of Scotland and inviting them to a meeting to gauge interest. Seven other companies came along, of which four opted out for a number of reasons. Anne, along with Ola Oils, Tilquhillie Fine Foods and Isabella's Preserves, decided to explore further the idea of collaboration.
After considering several structures for the new venture, they agreed on a co-operative as it fitted well with the ethos of what they were trying to achieve.
They will develop the venture by taking advantage of marketing opportunities like trade shows to grow the Wholesome Whole Foods Scotland brand - and they intend to look closely at how they take sales forward.
However, for all those involved the collaboration has already reaped rewards in that it has helped them create a network of support and advice and helped them to target potential sales growth in a cohesive and managed way.
Key points from this case study:
- identify opportunities which will help your business develop
- similar businesses can often make the best collaborative partners
- a third party can often help you identify and manage issues and opportunities
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