Karnival's smart road to BRAND ALLIANCE
Struggling through this pandemic, we have learned the importance of a united effort. It was a pleasure to witness that Humanity is not dead. People were selflessly coming out to help each other without even thinking twice.
Now that the situation is a bit under control (well, thank God!), we should hold on to this practice of being an ally.
Mother Teresa once said,
None of you, including me, ever do great things. But together, we can do small things with great love and create something wonderful.
And we couldn’t agree more!
From hitting the ground to adapting to the new normal and reprimanding the effects of the crisis, we have seen everything together. So why not bloom back together?
Sounds positive right?
The idea isn’t new. Many retailers and businesses have been practicing this for ages and generating oodles of profit.
So without further adieu, let us first discuss
WHAT IS BRAND ALLIANCE?
Also referred to as Strategic Alliance, it is a marketing strategy of building formal business relationships, helping in collaboration and sharing of market space with brands having similar short-term or long-term vision. This strategy renders plenty of benefits for both the allies, helping them earn tremendous business profits.
Before we discuss the benefits of this strategic alliance it is imperative to understand
HOW BRAND ALLIANCE WORKS?
As it is evident from the definition, this strategy works on the concept of the union of two or more Brands, working together to fetch mutual profit in their respective businesses.
While this concept is alluring to all business owners, implementing an end-to-end strategy is a very long, tedious process. But you are Karnival’s ally, and you don’t have to worry.
Karnival offers you a one-click platform to choose your partners. With more than 50 brands already in our bucket, you can select an ally who aligns with your vision.
Before you make a choice, focus on these 3 R’s
- Recognize: It is better to have a clear vision and be critical while making a choice. Your ally represents you, and you are a representer of them. So, while choosing a brand, focus on values and vision, and not just customer popularity.
- Research: Research well and plan a strategy that can benefit both brands. Take inspiration from previous, similar alliances or create something unique, but create a full-proof plan.
- Review: Before you join hands with any other brand, analyze your customer interest. Review the previous feedbacks and surveys, and prioritize what your customers demand from you.
Now without retracting further. Let us focus on
THE ADVANTAGES OF BRAND ALLIANCE:
There are many benefits of growing together like,
1. BROADER CUSTOMER SEGMENTS: When it comes to the number of customers, it is more the merrier. Expanding your potential consumer base is always a good idea, and joining hands with an ally is possibly the best way to achieve that.
When two brands come together, it is an amalgamation of brand values, strengths, and two customer databases. This union helps in approaching the customers of both the allies, increasing the customer reach and brand visibility among a broader segment of customers.
2. ECONOMIES OF SCALE: This is a cost advantage gained by the companies when the increase in production decreases the expenses. Reiterating, increased sales increase your buying frequency, in turn reducing the cost of purchase, leading to higher profits and fewer expenses. With the broader segment of prospective consumers, the chances of conversion increase thus, leading to the increased economies of scale.
3. COST REDUCTION: Before aligning with your ally, the cost of production, packaging, promotion, and marketing, everything is borne by you. Whereas, after the union, the legal terms of profit sharing and shared cost of operations are imposed, resulting in reduced expenses.
4. EXPERT ADVICE: Both the brands are an expert of their respective fields and market. Thus, once they unite, there is an abundant flow of knowledge and experience. This helps the brand to flourish better in other allies ’ markets.
5. Gratification of Investment: While the above benefits speak volumes about the retailer's profit. This one is your customer's best friend. Everyone loves free treats, don't they? If you provide the customer with a free voucher or discount coupon of their favorite brand, the feeling of gratification spikes in. The customer feels valued and will also choose you over the brands, who aren't providing anything in addition to the same purchase. What a win? Improved customer experience and earned customer loyalty will always save the day.
Now that the benefits of an alliance are unraveled, why opt for tricky time-consuming strategies when you can proceed the smart way.
Choosing the right platform to implement this union is peremptory. Karnival is not just a marketplace to choose your ally, we also provide you with a platform to send smart receipts to your customers. These receipts are your strategic playfield and your place to showcase your alliances. Implementing smart receipts over traditional bills will help in sending an environment-friendly message and drive customer retention.
So what do you choose?