Vanakam Makkalae

What is Horizontal Marketing?

   The horizontal marketing system is a way for two or more companies at the same level who are not related to gain economies of scale by working together.

Therefore, horizontal marketing refers to a tie-up between two unrelated companies that combines their strengths to exploit market opportunities.

     In general, companies who follow this type of marketing system are lacking in capital, human resources, production techniques, marketing programs and do not wish to incur huge losses. In order to overcome these limitations, companies form joint ventures with other larger companies, which can be temporary or permanent or merge with other companies to sustain in business.

  Recent times have seen the popularity of horizontal marketing due to fierce competition in the market among companies trying to achieve a good position along with massive profits.

Advantages of Horizontal Marketing:

· It allows you to reach a wider audience.

· The employees achieve greater satisfaction in this system because of more freedom and passion.

· It is also possible to achieve high levels of cooperation throughout the organization by utilizing types of teams.

· Innovative ideas can help the organization stay ahead of the competition due to this significant impact on innovation and creativity.

· Brand recognition, awareness, and value are also improved with this strategy.

Examples of Horizontal Marketing:

· Wow mommart:  The project is going to be launched by women entrepreneurs and geared towards women. This business will be launched as a collaboration of four to five companies.

· Nike and Apple: The two companies have entered into a partnership, with the aim of developing a Nike+ shoe that has an iPod connection so that music can be played along with information such as time, distance, calories burned, and heart rate.

How are you planning to implement Horizontal Marketing in your business?