A partnership is an agreement where different parties agree to cooperate to advance their mutual interests. The partners in Tanjong Pagar may be individuals, businesses, governments, and so on. It is a specific kind of legal relationship formed by agreement between two or more parties to carry on business.
A partnership in business is similar to personal partnerships. A successful business partnership requires not just short-term mutual interest but long-term compatibility.
Entering into a business partnership in Tanjong Pagar can be very exciting. You’ve found someone who shares your vision, works well with you, and has lots of great ideas. To create a partnership business, understand the why of your partner, seek commonality and shared vision, don’t rush the process, write things down.
Be clear on the value you bring to the table. Be honest about why you’re interested in creating a partnership. Understand why your partner is seeking to connect. Best partnerships work because the vision and values are shared as well as passion and enthusiasm. Seal all agreements in writing to avoid messy breakups in future. Contracts preserve relationship, not destroy them.
Strategic Planning Have You Ever Seen A Purple McDonald's Logo?
I am often asked, "How do I know that I am getting the most bang for my buck when running an ad in any particular advertising vehicle?" The answer here is that it depends. There are many factors to consider in determining if you are on the right track. Following are some tips that will help you.
1. Determine Your Ad Campaign Goals
What is your goal for your advertising campaign? Are you trying to create awareness? Do you want to generate traffic to your website or store front? Do you need X amount of leads to come from your campaign? Do you want to create a certain amount of sales for a new product or service? Determine what you need your ad to do for you then design your ad with the goal in mind.
2. Determine Your Budget
When I ask my clients about their advertising budget, I am often presented with this blank stare. It is very important to determine what the advertising budget is throughout the course of a year, and stick to it! Break out your budget and determine what you can spend per month. It's common sense, I know but many people don't do this in their business. Then go back to determine, based on upcoming events, what advertising needs to take place and when. Remember that it's okay to mix in other marketing vehicles such as internet ads, workshops, article marketing or public relations. These activities do not take a chuck out of your budget to implement.
3. Have Your Target Market In Mind
Who is your target audience? Where do they live? Where do they work? What is their income bracket? What is their marital status or age group? What are their habits? The answers to these questions will greatly help you determine which marketing vehicle to use based on their demographics. For example, if you find that most of your customers are into skiing, then you may want to advertising at a ski resort, in a ski magazine, exhibit at a conference or tradeshow that targets skiers or advertise on a billboard next to a ski shop.
4. Give Your Ad Time
So, how much time should you give your ad to do its job you ask? Again, the answer is, it depends. Monthly and quarterly marketing vehicles will require longer lead times than a local newspaper or radio. Plus, consider your campaign goals. Is your goal to create awareness, then you'll want to plan and run a continuous, steady, balanced campaign. If you are running a special during a specific holiday season for example, you'll want to run intense, concentrated campaigns. For instance, for a landscaper running an aeration promotion during the fall and summer months, he'll run more frequent ads for a few weeks rather than months, and then move to a more steady and poised pace during the summer and winter.
Keeping in mind that people need to see and hear your message several times before it sticks, different messages also resonate with different people. However, if your ad is producing little to no response, the advertising vehicle may not be to blame. Your ad may be the cause. Check that your ad has a compelling offer. Do you have a call to action in your ad? Is it too wordy where your audience glazes right over it? Do you have a catchy ad tagline? Remember, you have seconds to catch the attention of your audience. Are you trying to sell all your products in one ad? Keep your message to one subject and focus on one goal in each ad. Most advertising vehicles will allow you to change your ad at any given time. Test your ad for best results.
5. Measure Your Ad's Effectiveness
Keep track of which ad in what marketing vehicles are producing the best results. If you have a coupon running in various media, put a code at the bottom of each ad that will tell you where that coupon came from when a customer uses it. Have a slightly different offer in different media mixes to determine how a customer found you. Note: Different offers can also effect how will your ad is fairing. If you have one ad offering a percentage off versus a specific dollar amount, the results can differ dramatically. Above all, ask your customers how they heard about you.
5.5 Also, determine your cost of reaching your customers. Using the cost per thousand (CPM) method, multiply the cost of the ad by 1,000 and then divide that number by the size of the audience (your ad representative or advertising agency should be able to give you this information). To illustrate, if your ad cost you $650 to run in your local newspaper and their reach is 22,000, then the cost to reach your customers is ($650 x 1,000 / 22,000) $29.54. Comparing the CPM across various marketing vehicles will help you place your ad accordingly.
By following these simple guidelines, you'll place yourself in a more favorable position to meet your goals, stay on target while producing results, without extending your marketing budget.
With the support of our professional business network, you get the opportunity to exchange experience and knowledge at a top professional level, and to strengthen and develop your own skills within your management and specialist areas.
Legal structure of partnership will dictate many decisions as to how the business is run.
Main partnership types are:
- General Partnership: formed when all partners participate in business operations and take mutual responsibility for business’s debt. These offer very little protection for partners from liability.
- Limited Partnership: most often chosen when business partners in Tanjong Pagar are taking an uneven level of involvement in business.
- Limited Liability Partnership: is a structure that limits each individual’s personal financial responsibility.
What’s left unsaid or unplanned often leads to unmet expectations. Partners can clash over countless things.
First, ask yourself do you really need a business partner to build a successful business in Tanjong Pagar? Test the partnership out by tackling a small project together. Business partnership can end bitterly. Be especially careful when partnering with close friends or family members. Thoughtfully plan and prepare for every aspect of partnership in advance so there’s no question about how difficult situations will be handled. Create a partnership agreement with help from a lawyer and an accountant. Agreement should address compensation, roles and responsibilities, exit clauses. Outline your expectations for how you’ll operate your business.
Networking has always been considered a powerful tool for improving business prospects, advancing a career, and developing ideas. Other than some brief, structured events, networking has been mostly informal and inexpensive in comparison to cost they otherwise spend on different channels. But membership is growing in many formal, long-term networking groups, and so is the price tag.
Artificial Intelligence: The Next Tech Bubble or the Changing Face of Technology
When I was ten years old at a summer camp I was leading in the potato sack race. To check on my competitors I looked over my shoulder and suddenly tripped and fell. I came in last place. Even the slowest person, Marsh Mellow Matt beat me. It was humiliating. But in the end I gained a good learning experience.
When a bargain-brand product attacks your premium-brand space, is it still healthy to look over your shoulder? Will you trip over too?
In a robust economy it's relatively easy to maintain profitable growth of a premium-brand product. Conversely, in today's economy, the competitive forces are testing the best of us. We are entering a new paradigm of business and the days of conspicuous consumption are quickly receding. Since 2007 over 8 million jobs have been lost. We have chronic unemployment at 10%, or in reality its 17% when you add the people who gave up looking for a job. As fear, insecurity, and the need to be frugal enter the consciousness of consumers, companies are responding by introducing lower price bargain-brand products. What's a premium-brand to do?
There are three strategies a premium-brand can consider; (1) Introduce your own bargain-brand, (2) Innovate a new value product category (3) Or, maintain status quo. Let's consider the ramifications of deploying your own Bargain-Brand.
As Jacqueline Kennedy once said, "I don't react, I respond."
There's a saying, "Never fight a pig because you'll get muddy and the pig will enjoy it." The same goes for a premium-brand looking to protect its market share against a bargain-brand. Every day we see new bargain airlines, bargain consumer products, bargain cars, bargain food, and bargain electronics. Be careful of the panic reaction when you deploy short term tactics in price discounting and couponing. It may only deplete profits. You can hold the line, but can you afford customers who defect to lower price brands. As Jacqueline Kennedy once said, "I don't react, I respond."
Seek your uniqueness
There are no right answers, but a journey of discovery will help determine your strengths, weaknesses, and uniqueness. In a recent book by Dr. Caroline Leaf, called, The Gift In You, this PhD. Researcher discovered there are seven layers of thinking processes in our minds. The seven layers of thinking processes are: Intrapersonal, Interpersonal, Math/Logic, Visual/Spatial, Music, Kinesthetic, and Linguistic. Starting from the most dominant thinking process, when a new thought enters our mind it will loop into the seven layers in a different sequential order. For example, someone who thinks first in music will be able to read between the lines to give meaning to it. While a logic/math dominant thinker performs pattern recognition in huge numbers and reasons in a precise order. We all see the world differently and think differently. We are all unique and so are our companies and the way we collective process our thinking. As such it's fruitless to be like someone else such as Steve Jobs. None of us can think like him and nor do we want to. We must learn to be ourselves by knowing our uniqueness and using it to your advantage.
Are you an elephant or a cheetah?
As Shakespeare once said, "To thine own self be true." In other words, do you have the competencies to compete as a Bargain-Brand?
When launching a new product you'll have to adjust and adapt quickly. Is your company a cheetah that can move quickly and adapt to consumer and market changes? Or, are you a slow moving elephant that makes decisions at a sluggish pace? A slow moving elephant should think twice when competing against fast moving bargain-brand cheetahs.
GM was slow to introduce Saturn to compete against the Japanese, but Intel was quick to respond to constant AMD attacks. At first, Intel's bargain-brand chips (Celeron) performed poorly, but they responded quickly to the market and beat AMD at their own game.
Will you divide and conquer yourself?
Julius Caesar's strategy to overcome the enemy was to divide and conquer. When launching a Bargain-Brand, you might be dividing your resources and placing your entire organization into a weak position. Without sufficient resources, people, and focus, both your premium and bargain brand products could become diluted and fail. If the Bargain-Brand fails then you'll have the added cost and time of cleaning up plus the cost and time to rebuild the Premium-Brand.
It cost GM $15 Billion to launch and maintain the Saturn division. Delta Airlines launched Ted Airlines and lost billions too. These two elephants didn't understand their uniqueness nor able to response quickly to market changes. Rather they copied the competition thinking that would satisfy the market.
On the other hand, fifty years ago, Anheuser-Busch was facing a low-price assault from regional players which opened up a whole new market category. Anheuser-Busch responded by opening up another company that was completely separate from the parent company; perhaps you've heard of Busch Beer.
Are you looking at your customers or just your competition?
The famous basketball coach John Wooden won more college basketball championships than anyone else. Part of his success was to never allow one player to be compared to another. Rather, each player was judged by his own skills, performances, and productivity. Companies trying to copy Bargain-Brands don't have the same competencies, people, collective thinking processes, and experiences like their competition. Look at Steve Jobs and his string of successful products; iPod, iPhone, iTunes, etc. Therefore, don't copy your competition, rather seek what is good for the customer and use your uniqueness to develop your product.
Know thy customer
This is a key time to study your customer to determine their true needs and the perceived value of your offering. Advances in Neuromarketing have discovered that traditional marketing research can fall short in truly understanding how a customer receives your message. Each year billions of dollars are spent on traditional market research and still 80% of new product launches fail. Neuromarketing will give you insight on the emotional needs of your audience and how they will perceive your messaging and marketing.
The power of Neuromarketing starts with the engagement of our seven senses; (1) Taste, (2) Smell, (3) Hearing (4) Touch, (5) Sight, (6) Humor, and (7) Intuition. To make it all work one must understand the power of association that directly impacts our emotional brain and how past experiences are recalled when we encounter a brand experience. Walk into a Whole Foods Store and you're bombarded with a cornucopia of beautiful food, fresh baked bread, brewed coffee, and desserts turned into art. You're flooded with emotions of mom, home, security, abundance, and happiness. The experience is frequently joyful and you're willing to pay premium prices for their products.
The power of association will engage our senses to recall positive experiences that we will tie to the brand. Called somatic markers, they represent a total compilation of emotions, negative associations, and positive associations. When a woman is given a light blue box with a white ribbon, the Tiffany brand and blue color evoke strong feminine emotions. When we think of a well branded product, such as Coach, Chanel, Harley Davidson and Tiffany, many of us experience an emotional and somewhat sensual positive response. A good brand tied to Neuro-marketing should offer:
o A great experience that exceeds customer's expectations
o A clarification of the value of the product
o A decision by the prospect to consider purchasing it
How we associate products with past experiences can determine our purchasing considerations. Mr Lindstrom in Buyology highlighted a few examples such as;
o Light blue for a woman can be associated with engagement, marriage, babies, and fertility. Pink is associated with luxury, sensuality, and being feminine.
o Color will increase brand recognition by 80% and represents up to 50% in the decision making process to choose a brand product.
o People will buy more out of love (53%) versus sex (26%).
o Be authentic, transparent, and real. We buy from people we can relate to.
Don't let your Bargain-Brand cannibalize the profits of your Premium-Brand.
If you decide on launching a Bargain-brand be sure you are capturing the right revenue. If one part of your target audience is not profitable with your premium-brand and your bargain-brand can capture that profit, then go for it. On the other hand, if your Bargain-brand is going to cannibalize your premium-brand profits then reconsider your options.
It's essential that your bargain-brand have a different perceived value, messaging, and pricing. Years ago Kodak came out with a bargain-brand film that had little distinction from the premium brand. Customers went for the lower price product cannibalizing profits from the premium-brand. On the other hand, when P&G purchased Luv's Diapers brand, it repositioned it as a bargain-brand. Their Pampers brand was given greater features and advertising thus creating a higher perceived value.
Must Develop a Difference in Perception and Value
If you offer a bargain-brand, then your goal is to offer two products with much separation in value and messaging. You'll want to consider using Neuromarketing research techniques. It is essential that the premium product maintain its true value benefits while the lower-price brand act and look like a bargain-brand one. By acting like a bargain-brand, you'll be able to cut costs on marketing, support, operations, and production and thereby creating the gross margin to compete effectively on price. You may want to use a hot button here to connect people to your article on Neuromarketing.
When Anheuser-Busch rolled out Busch Beer they created a whole new company and identity. They invested in new distribution, new trucks, and new sales people to ensure that the Premium-brand and Bargain-brand were not confused but optimized.
Don't recreate the wheel or build a new organization unless there's a market for it
GM invested $15 Billion in Saturn and it failed. Is your goal to market a Bargain-Brand or build a new company?
Consider your resources, sales volume, and gross margins. Your goal is to make a profit. If your Premium-brand cannot serve another large market, then a new organization, such as starting up a discount airline division or Busch Beer may be an answer. On the other hand, if your premium-brand can cover the market then re-consider your options. As I mentioned earlier, GM spent $15 Billion on the new Saturn division, when their existing product lines at Buick and Chevy reached the same target audience.
The Final Strategy to Consider: Innovate a new product category
A recent book called Blue Ocean Strategy stated that it is sometimes better to innovate a new product than to compete in blood thirsty waters or Red Ocean. Look at the crowded fields of electronic consumer products, automobiles and food. When you launch a new product in these categories how do you stand out?
Conversely, companies will innovate new products developing a new category where there is no competition; hence Blue Ocean. Years ago Sony launched the Walkman. Apple introduced the iPod and iPhone. An example in Blue Ocean Strategy was the Casella Winery from Australian who wanted to launch a new wine in a very crowded and snooty category.
A strategy based on innovation will look at different customers with shared commonalties. In the crowded wine business, more wineries did not think of looking for low budget beer drinkers. The Casella winery saw things differently and believed beer drinkers would want wine if the purchase decision was made simple and fun. Out came Yellow Tail wine in simple red and white versions.
A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.
The lesson I learned in the potato sack race was easy, keep your eye on the goal line not what your competition is always doing. John Wooden's success was doing the best he could possibly do every day. As you consider your premium brand, think about the best you can do every day with it. As any typical SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTEL analysis (Political, Economic, Social, Technology, Environmental, Legal) you should consider:
Are you an elephant or a cheetah organization?
Will your Bargain -Brand cannibalize your Premium -Brand profits?
Do you have the resources to run two brands simultaneously at a profit?
Are you able to clearly define and communicate the different unique selling proposition for each brand?
Will the customer perceive the differences?
Will your current Premium-Brand cover this market? Or is the Bargain-Brand a new demographic?
Lastly, do you innovate a new product to create a new category and target audience?
As Jacqueline Kennedy once said, "I don't react, I respond." Panic and fear should not be part of your tactics, but a well thought out response that optimizes your resources, strengths, and uniqueness in meeting the needs and wants of your customer.
Addressing the issues upfront will help you better focus on your business later. Set expectations for a successful business partnership. Know your relationship with your business partner. Know your financial roles and viewpoints. Know your exit strategy. Agree on structuring your partnership.