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What Is a Joint Business Plan (JBP)? Benefits & Best Practices

By 8th & Walton | on October 2, 2022

From small businesses to large corporations, the most successful companies begin and stick with a clear business plan. When a company defines its goals, lays out a path to meet objectives, and agrees on financial spending and expectations, it creates a shared vision and accountability to succeed.

Many businesses experience greater growth when partnering with another business. In the supplier and retailer relationship, both parties working independently would be detrimental. To create a mutually beneficial partnership, they must begin by defining each company’s responsibilities, expectations, and needs in a joint business plan.

What Is a Joint Business Plan?

A joint business plan (JBP) is the collaborative process of planning between a retailer and a supplier in which both companies agree on short-term and long-term objectives, financial goals, growth, and shared business initiatives for profitability.

Joint business planning focuses on agreeing on common objectives and aligning on a single goal or set of goals. The companies in the joint business plan must work together to accomplish a shared vision.

What Is the Purpose of a Joint Business Plan?

For retailers and suppliers, having a joint business plan can create a win-win strategy in growing consumer sales. An effective JBP allows suppliers to build stronger relationships with their retailers so both parties can mutually support and benefit from each other.

When a retailer and supplier recognize each others’ needs and agree on common goals, they can share insights to support each other and improve sales, customer growth, and processes.

How Does a Joint Business Plan Work?

Two companies can come together with a joint business plan because they have one thing in common: a shared shopper . Whether it is a supplier partnering with a retailer or a children’s clothing company partnering with a toy manufacturer, having the same target audience is the first element that brings the companies together.

The companies considering a joint business venture should then share their individual business plans and discuss their mutual growth opportunities. This is where the general goals and areas of support can be defined. Specific tactics and category strategies can also be fleshed out in early discussions before moving to the formal process.

Once both companies are in agreement that the partnership will be mutually beneficial, the joint business plan can be created. Formal contracts are drawn up, approved, signed, and the plan is ready to be executed. Periodic reviews and necessary adjustments to the JBP are recommended as needed.

Benefits of Joint Business Planning

Why enter into a joint business plan with another company? The benefits can be not only financial but educational as well:

• Aligning goals.  For a retailer/supplier joint business plan, being aligned on goals creates clarity on all other areas of the business. Defining expectations on all areas from marketing to supply chain to sales goals leaves minimal area for questions. Agreeing on goals, no matter how and when they are measured, keeps both parties accountable and benefits both to meet expectations.
• Shared resources and exposure. Partnering with another company can bring a new audience and a new platform. In a simple retailer/supplier joint business plan, the retailer can introduce the supplier’s product to its core shoppers. At the same time, shoppers loyal to the supplier’s product or brand can be introduced to the retailer’s store and website for the first time.
• Greater return on investment.  By partnering with another company with a shared vision, the benefits above will provide a better ROI when the plan is executed correctly.

Joint Business Planning Best Practices

How can companies ensure their joint business plan is a good fit for both parties? These are some best practices to include in preparation for entering into the partnership:

1. Align Internally First

Before entering into a joint business plan with another company, all members of the business must agree on the benefits of the partnership. Recognizing the advantages and seeing the bigger picture is key. When employees are in alignment within the company, it will be easier to align with the partnering company on the shared vision of the joint business plan.

2. Create the Plan Together

When two businesses enter into a partnership, the joint business plan should not be built by only one. A company sending another a complete plan or just a form to fill out is not collaborative. Both companies need to build the plan from the ground up. Collaborating in the development of the joint business plan is just as important as executing the plan itself.

3. Set Specific Goals

Expectations for success in the partnership need to be specific. “We need to grow sales” or “production costs will decrease” are good goals, but too general. Keep specifics in your plan that are as specific as they are realistic. If one company wants to grow sales by 40% in the next quarter, this should be spelled out in the joint business plan so get early support or push back from the other company.

4. Assign a Metric to Each Goal

Putting a metric with a goal keeps the company accountable to the mission of the joint business plan. For example, if the goal is to grow sales by 40% in the next quarter, it would be wise to assign a weekly growth metric. If the metric is too low over a few weeks, the plan shows that action needs to be taken immediately in order to meet the 40% sales growth goal for the quarter.

5. Communicate Responsibility and Accountability

The joint business plan is the place to eliminate all guesswork. If Company A is responsible for providing labels to Company B, be very specific about the responsible parties. Clarify that the packaging coordinator of Company A will mail the labels to the warehouse manager of Company B on the first of the month.

6. Include Risks and Solutions

Planning for setbacks is key to planning for success. The joint business plan should include any possible risks or obstacles foreseen by either company. Having solutions in place for multiple scenarios makes the plan easier to execute.

7. Constantly Evaluate the Relationship

Joint business plans work better with trust, mutual respect, and a great working relationship. Keeping the relationship healthy between the companies and individuals relying on each other brings more success to the overall plan. Monitor the relationship periodically and work to resolve conflicts as they arise.

Joint Business Plans at Walmart

Walmart works with its suppliers to create plans for sales and category growth. The company relies on suppliers to bring insights to the table to spot trends and get in front of potential gaps in the business.

Back in 2011, Walmart created a joint business plan with Proctor and Gamble to pick up lost sales in air fresheners. This category was down over 2% across the chain, but P&G brought insights to Walmart on how consumers were purchasing throughout the industry.

Consumers had no problem going to Walmart for aerosol sprays for under a dollar, but would then go to specialty stores to purchase expensive candles in the same scent. Through communicating through the joint business plan, Walmart was able to create excitement around higher price-point items and show the shared shopper they could purchase the extra items in one store.

Positive business collaborations can be extremely beneficial in growing retail sales. Two companies sharing a common vision can build on each other’s best practices and support each other to mutually win at the register.

Suppliers looking for support in their Walmart business have found great collaboration with 8th & Walton. Our team of experts supports suppliers to improve reporting, analytics, supply chain, accounting, and more. To begin a great collaboration with us, request a free 15-minute consultation this week.

About the Author

8th & Walton consists of retail industry experts with a combined 200+ years of Walmart and Walmart supplier experience. Having helped hundreds of CPG companies in their efforts to be better supplier partners to the world's most influential retailer, the 8th & Walton editorial team prides itself on being a go-to resource for Walmart supplier news and insights.

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A Guide to Joint Business Planning Best Practices

Joint business planning is a crucial aspect of fostering successful collaborations between companies. In today’s dynamic business environment, strategic partnerships have become increasingly prevalent, making it essential for organizations to adopt effective joint business planning best practices. This article will explore the key principles and strategies that contribute to successful joint business planning, providing insights […]

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• Updated at 03/21/2024
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Joint business planning is a crucial aspect of fostering successful collaborations between companies. In today’s dynamic business environment, strategic partnerships have become increasingly prevalent, making it essential for organizations to adopt effective joint business planning best practices. This article will explore the key principles and strategies that contribute to successful joint business planning, providing insights into how businesses can optimize their collaborative efforts for mutual growth and success.

Table of Contents

The Importance of Joint Business Planning in Today’s Market

In an era defined by rapid change and increasing interconnectivity, the significance of joint business planning cannot be overstated. This section explores how businesses can gain a competitive edge, foster shared vision, and unlock mutual growth opportunities through effective collaborative strategies.

Competitive Advantage and Shared Vision

Joint business planning serves as a catalyst for companies seeking a competitive advantage in the market. When organizations come together to strategically plan and align their strengths, they create a synergy that surpasses individual capabilities. This subsection delves into how collaborative efforts can amplify competitiveness by leveraging the unique strengths of each partner.

A shared vision is the cornerstone of successful partnerships. This subsection emphasizes the importance of establishing a common understanding of long-term goals and objectives. By aligning visions, businesses can enhance cooperation, minimize conflicts, and work towards a unified purpose. Effective joint business planning ensures that all stakeholders are on the same page, promoting a cohesive approach to achieving shared goals.

Mutual Growth Opportunities and Win-Win Strategy

Joint business planning creates a framework for identifying and capitalizing on mutual growth opportunities. This involves exploring synergies between partners, uncovering complementary strengths, and strategically leveraging resources. This subsection explores how collaborative planning facilitates the identification of avenues for joint growth, leading to mutually beneficial outcomes.

The essence of successful joint business planning lies in adopting a win-win strategy. This involves creating scenarios where all parties involved stand to gain, fostering a collaborative environment based on trust and reciprocity. This subsection delves into the principles of a win-win approach, showcasing how it not only enhances the success of partnerships but also builds a foundation for long-term, sustainable relationships.

Core Elements of Effective Joint Business Planning

Collaboration is only as strong as the foundation it is built upon. This section delves into the essential elements that underpin successful joint business planning, emphasizing the importance of aligning business strategies, sharing shopper and marketplace insights, and cultivating collaborative working relationships.

Aligning Business Strategies for Success

Central to effective joint business planning is the alignment of business strategies. This involves harmonizing the goals, tactics, and overarching plans of collaborating entities. By ensuring strategic congruence, partners can maximize the impact of their combined efforts. This subsection explores the intricacies of strategic alignment and how it forms the bedrock for successful joint business planning.

Effective joint business planning goes beyond immediate gains; it incorporates a holistic approach that integrates both short-term wins and long-term objectives. This subsection discusses how businesses can synchronize their timelines and milestones to create a comprehensive strategy that facilitates sustainable success.

Shared Shopper and Marketplace Insights

An integral aspect of joint business planning is the sharing of shopper insights. By pooling data and understanding consumer behavior and preferences, partners can tailor their strategies to meet evolving market demands. 

This subsection delves into the importance of shared shopper insights and how they contribute to more informed decision-making in collaborative endeavors.

In a dynamic marketplace, staying ahead requires constant awareness. This subsection explores how joint business planning encourages the exchange of marketplace intelligence. Partners can adapt to changing trends, capitalize on emerging opportunities, and navigate challenges more effectively by combining their knowledge and resources.

Collaborative Working Relationships

At the heart of effective joint business planning is the cultivation of collaborative working relationships. Trust and open communication form the backbone of successful partnerships. This subsection explores strategies for building trust among partners and fostering an environment where transparent communication is prioritized.

Collaboration often involves navigating unforeseen challenges and capitalizing on unexpected opportunities. This subsection discusses the importance of flexibility and responsiveness in joint business planning, emphasizing the need for partners to adapt and evolve together in a dynamic business landscape.

How to Create an Effective Joint Business Plan

In the pursuit of successful collaborative ventures, crafting an effective joint business plan is paramount. 

This section outlines the key steps involved in creating a robust plan, covering aspects such as setting joint objectives, resource allocation, and addressing legal considerations.

1. Setting Joint Objectives and Account Management

The foundation of any joint business plan lies in establishing clear and achievable objectives. This subsection explores the importance of defining shared goals, aligning strategies, and ensuring that all stakeholders are committed to a common purpose. Clear objectives provide a roadmap for collaborative efforts, guiding partners toward mutual success.

Effective account management is crucial for the seamless execution of joint business plans. This involves assigning responsibilities, creating accountability structures, and establishing communication channels. 

Delving into the intricacies of strategic account management, this subsection highlights how a well-organized approach contributes to the overall success of collaborative initiatives.

2. Resource Allocation and Shared Resources

Resource allocation is a critical aspect of joint business planning, ensuring that both parties contribute and benefit equitably. 

This subsection explores strategies for optimizing the allocation of financial, human, and technological resources. By balancing contributions, businesses can enhance efficiency and maximize the impact of their collaborative efforts.

Collaborative ventures often involve the pooling of resources to achieve common goals. This subsection delves into the concept of shared resources, emphasizing how partners can leverage each other’s strengths to overcome challenges and capitalize on opportunities. 

Efficient utilization of shared resources enhances the overall effectiveness and sustainability of joint initiatives.

3. Formal Contracts and Legal Aspects

A crucial step in creating an effective joint business plan is the establishment of formal contracts. This subsection explores the importance of clearly defined agreements, covering aspects such as roles and responsibilities, dispute resolution mechanisms, and exit strategies. 

Robust contractual frameworks provide a solid foundation for trust and transparency between collaborating entities.

Navigating the legal landscape is essential for the success and longevity of joint business ventures. 

This subsection delves into the legal aspects involved in collaborative efforts, addressing issues such as intellectual property, confidentiality, and compliance. Understanding and addressing legal considerations from the outset safeguards the interests of all parties involved.

Best Practices for Joint Business Planning Execution

Effective execution is the linchpin of successful joint business planning. This section explores best practices that organizations can adopt to ensure the seamless implementation of collaborative strategies, including the use of performance metrics, monitoring, accountability, and value chain analysis.

1. Performance Metrics and KPIs

Setting and monitoring performance metrics are essential elements of joint business planning execution. This subsection delves into the process of defining key performance indicators (KPIs) that align with the shared objectives of the collaborative venture. 

By establishing measurable benchmarks, organizations can gauge the success of their efforts and make informed decisions to optimize performance.

Performance metrics should not be static; instead, they should be subject to continuous evaluation. This subsection emphasizes the importance of regularly assessing KPIs, analyzing performance data, and adapting strategies based on the evolving needs of the collaboration. 

A dynamic approach to performance measurement ensures that joint business plans remain responsive to changing market conditions.

2. Monitoring and Accountability

Effective monitoring is a cornerstone of successful joint business planning execution. This subsection explores proactive monitoring strategies, including the use of technology, regular communication channels, and real-time data analysis. 

By staying vigilant and responsive, organizations can identify potential issues early on and take corrective actions to maintain the trajectory toward shared goals.

Clear accountability structures are vital for the success of collaborative ventures. This subsection delves into the importance of defining roles, responsibilities, and expectations within the partnership. 

Establishing accountability structures fosters a sense of ownership among all stakeholders, ensuring that each party contributes actively to the joint business plan’s execution.

3. Value Chain Analysis and Multi-functional Execution

Conducting a value chain analysis is a best practice that can significantly enhance joint business planning execution. This subsection explores how organizations can identify value-creation opportunities at each stage of the collaboration. 

By optimizing the value chain, partners can streamline processes, reduce costs, and deliver enhanced value to customers.

Collaborative ventures often involve the integration of multiple functions within each organization. This subsection discusses the importance of multi-functional execution, emphasizing the need for seamless coordination across departments. 

By breaking down silos and promoting cross-functional collaboration, organizations can ensure the holistic implementation of joint business plans.

Creating Value Through Customer Focus

In today’s customer-centric business landscape, creating value for consumers is at the forefront of successful joint business planning. 

This section explores strategies for placing customers at the center of collaborative efforts, enhancing consumer sales, and elevating the overall customer experience.

How to Create Value for Customers Through Joint Business Planning

A fundamental step in creating value through joint business planning is gaining a deep understanding of customer needs and preferences. This subsection explores how organizations can leverage market insights, customer feedback, and data analytics to identify and prioritize customer-centric initiatives. 

By aligning collaborative strategies with customer expectations, businesses can create offerings that resonate with their target audience.

Effective joint business planning involves co-creating solutions that address specific customer pain points. This subsection emphasizes the importance of collaboration in ideation and product development, showcasing how partnerships can bring together diverse perspectives and expertise to deliver innovative solutions. 

Co-created offerings not only meet customer needs but also differentiate the collaborative venture in the market.

Consumer Sales and Customer Experience

Joint business planning can significantly impact consumer sales by optimizing distribution channels, expanding market reach, and aligning sales strategies. This subsection explores how organizations can leverage their collaborative efforts to boost consumer sales. Whether through joint marketing initiatives, bundled offerings, or cross-promotions, aligning sales strategies enhances the overall success of the partnership.

Customer experience is a critical differentiator in today’s competitive market. This subsection delves into how joint business planning can be structured to elevate the customer experience. 

From seamless transactions to personalized interactions, collaborative ventures can enhance every touchpoint in the customer journey. Focusing on customer satisfaction not only builds loyalty but also contributes to the long-term success of the collaborative partnership.

In conclusion, the journey through the intricacies of joint business planning best practices has highlighted the pivotal role that effective collaboration plays in today’s dynamic business environment. 

From aligning business strategies and setting joint objectives to executing plans with a customer-centric focus, the success of collaborative ventures hinges on a thoughtful and strategic approach.

Frequently Asked Questions (FAQs)

What are the key metrics to measure the success of a joint business plan.

Measuring the success of a Joint Business Plan involves tracking key metrics such as revenue growth, market share expansion, customer satisfaction, cost savings, return on investment (ROI), and adherence to compliance and risk mitigation. 

These metrics provide a comprehensive evaluation of the collaborative venture’s impact on both financial and operational aspects, ensuring a holistic assessment of the plan’s effectiveness.

How do you resolve conflicts during the Joint Business Planning process?

Resolving conflicts during the Joint Business Planning process requires an open communication approach, identification of root causes, and, when needed, the involvement of a neutral third party for mediation. 

A clear definition of roles and responsibilities, the establishment of conflict resolution protocols within the joint business plan, and a focus on shared objectives contribute to addressing conflicts promptly and fostering a collaborative environment.

What role do executive sales leaders play in Joint Business Planning?

Executive sales leaders play a pivotal role in Joint Business Planning by strategically aligning sales efforts with overall business goals, contributing to resource allocation discussions, cultivating relationships with key stakeholders, providing market insights, and overseeing the performance of sales teams. 

Their involvement ensures that sales strategies complement the collaborative venture’s objectives, driving success in terms of revenue and market impact.

How often should a Joint Business Plan be reviewed and updated?

The frequency of reviewing and updating a Joint Business Plan varies but commonly involves quarterly reviews for timely adjustments based on market changes and annual updates for comprehensive reassessment of long-term goals. Additionally, trigger events such as major market shifts or significant internal changes may prompt unscheduled reviews. 

Adapting the frequency based on the dynamic nature of the business environment ensures the plan remains relevant and responsive to evolving conditions.

Are there any software tools that can facilitate Joint Business Planning?

Various software tools facilitate Joint Business Planning, offering features such as collaboration, data analysis, project management, and document sharing. Platforms like Microsoft Teams, Slack, or Asana enhance communication, while tools such as Tableau or Power BI aid in data analysis.   Project management software like Trello or Jira helps in planning and tracking progress, and CRM systems like Salesforce or HubSpot centralize customer interactions and sales activities. The selection of tools depends on the specific needs and preferences of the collaborating organizations.

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What Is Joint Business Planning?

by Ursula Brady | Mar 3, 2022 | Blog Post

Executive Vice President and Chief Merchandising Officer , Sam’s Club (Walmart)

Tectonic Shifts in the Retail Environment

The symbiotic relationship between retailer and Consumer Packaged Goods (CPG) companies has, till now, been able to support steady growth based on demand alone. Now, as the Consumer Goods (CG) industry continues to shift away from organic expansion, the need to reach more customers and engage new audiences is more important than ever.

Let’s dive in to some of the key shifts our customers are seeing in the retail environment:

• Competition: Authentic challenger brands are continually entering the market. According to a recent survey carried out by McKinsey, 30-40% of consumers have been trying new brands and products during the pandemic. Of these consumers, 12% expect to continue to purchase the new brands after the pandemic. More competition = more difficulty obtaining or retaining market share.
• Price Pressures: Global supply chain stress has created a multitude of issues for companies seeking to keep costs down. Disruptions in labour markets have seen  15% of companies  with insufficient labour for their facilities to keep up with increases in demand, leading to inflation re-emerging as a significant problem for the first time since the 1970s.
• Regulations: Changing consumer needs are not only encouraging the rise of new, healthier alternative brands but also instigating real legislative change. For example, in October 2022, HFSS (High in Fat, Salt & Sugar) regulations  will see a crackdown on promotions for unhealthy food and drinks, which will have serious repercussions for both suppliers and retailers.

Traditional Account Management Is Obsolete

Retail, Wholesale & Distribution Leader , Deloitte Global

These shifts have caused retailers to change the way they do business; the traditional playbook needs to be thrown out and rewritten. The diversification we have seen in channels, models and store formats means that retailers’ expectations for suppliers have changed. And, as increasing numbers of authentic challenger brands come to market, competition has never been higher. 

For both retailers and suppliers, Key Account Management (KAM) needs to be revisited. A culture of test & learn in real time needs to be applied to contend with these new market entrants and, with “key accounts contribut[ing] between 40% to 80% of revenue for a branded supplier” in developed markets as indicated by   this article by Bain & Company , the time to reinvent is now.

Major incentives for change can be distilled into these three points:

Negotiation Can Feel Like a Zero-Sum Game

In the past, the CPG industry power dynamic has often favoured the supplier, but this is no longer the case.   Only 3% of retailers   are in an exclusive relationship with just one supplier in a given category, indicating the clout they hold to sway access to consumers is higher than ever before. With   a number of Consumer Goods companies   falling prey to a one-size-fits-all to their global business models, they have been losing valuable ground to more specialised, relevant competitors.

For CPG companies, visibility at point-of-sale for their products is vital. For retailers, getting the product in-store   to   sell is their business. Having retailers being ‘on-side’ and aligned is game-changing for suppliers. 

But, as indicated in the name, Joint Business Plans need to be exactly that: Joint. If the manufacturers arrive at the table with a railroad agenda, offering little to no agency to the retailer, it will be too one-sided and off balanced. If retailers have unrealistic expectations, e.g broad assortments or 24-hour delivery, from certain suppliers, the equilibrium of the plan will be thrown off from the outset. This is where the value of insight-sharing cannot be understated;   IGD asserts   that both sides must ‘be prepared to share information with each other’ to achieve success.

Both CPG companies and retailers need to be able to influence the plan and offer respective insights to avoid creating a zero-sum atmosphere.

How Can Joint Business Planning Be Achieved?

For companies collaborating on Joint Business Plans, certain proactive steps need to be taken to fit the plan to benefit both parties. Bain & Company have set out   five key steps   that they have seen Consumer Goods companies take to achieve ‘more trustful and productive’ relationships and provide significant value.

1. Understand the Retailer’s Economics as Well as Your Own

Entering into a business relationship, such as a JBP, with a full understanding of where a potential partner is in the market is pivotal to a successful collaboration. Being aware of any weaknesses provides the opportunity to address them before they become an issue and impact your business. 

In turn, a complete understanding of your own business’ strengths and weaknesses before embarking on any external partnership is equally important. A Joint Business Plan can only be successful if it truly brings benefit to both the retailers and CPG companies; without this, joint commitment can’t be assured. 

This demands the creation of an environment where retailers and CPG companies can offer total visibility into their data, thereby enabling creation of target audiences and consumer journeys. As indicated by an   IGD Industry Survey , ‘Too often trust is the biggest barrier to putting any proposal into action’. Data transparency reduces the possibility of down-the-line surprises and potential derailing of the plan.

2. Differentiate Your Joint Business Plan and Align It With Your Retailer’s Strategy to Target Shoppers

While keeping costs down may be   advantageous, it is vital not to lose sight of the top priority; understanding the target customer segments. 

Customer data extracted through the collaborative JBP can help maintain product stock levels, illustrate demand and identify trends in product distribution. Without this information, even a theoretically perfect Joint Business Plan will fail. Understanding who the customers are and what they are buying better enables CPG companies and retailers to produce and distribute – keeping the customer’s needs at the crux of their strategy.

It’s important to note that Joint Business plans are not one-size-fits-all; it may take more time to differentiate a plan to make it more tailored to a specific relationship, but the benefits can outweigh the expense.

3. Have Teams on the Ground Executing Key Customer Touchpoints and Confirming Compliance

Research by POI illustrates that   58% of CPG companies   are struggling with retailer aligned compliance for store-level promotion execution. Clearly, there is a concerted need to ensure in-real time that assured promotions are being carried out, but   27% of CPG companies   do not get   any   real-time insights into retailer compliance, forcing them to wait until the end of a cycle to make any significant changes.

While promotion compliance isn’t a new issue in the Consumer Goods industry, it can be a major roadblock to a JBP. With teams in the field, far more regular compliance checks can be performed and the information shared much wider, much faster. 

4. Maintain Year-Round Contact With Customers at Multiple Levels and Functions

The dialogue between each party needs to continue beyond initial negotiations and agreements. Regular meetings provide opportunities to correct mid-cycle issues, where the retailer and CPG company can align on real-time results and solutions. 

Without clearly defined and tracked performance metrics, the success of the JBP is uncertain. Both parties need to agree on what data sources are going to be reviewed. Expectations must be laid out internally and externally, to establish what each side hopes to get out of the arrangement. This will prevent potential disappointment if or when unaired expectations aren’t met. 

It is also important to have discussed and agreed upon the terms and investment in the JBP. Going into a project aware of the value that each business is adding to the other and being able to quantify the ROI is fundamental to a successful Joint Business Plan.

5. Use the Most Advanced Tools and Insights to Stay on Top of Your Joint Numbers

As shown in the recent Promotion Optimization Institute (POI)   State of the Industry Report , 64% of manufacturers have challenges when looking for data from retailers. When data is such a foundational element to gainful retailer partnerships, it needs to be shared. The ideal is to involve teams from across the company including distribution, sales, finance and marketing. Siloed internal communication can negatively impact information sharing and lead to failure of a JBP.

CPG companies need to leverage real-time insights pulled from a range of commercial data sources that allow them to optimize strategies based on their business goals and current supply and promotion constraints. This maximises the value of every dollar invested in trade spend.

Aforza & Joint Business Planning

Closely aligned with the tenets of   Bain’s Key Account Management Commercial Excellence   framework, Aforza drives Joint Business Planning with an end-to-end platform of core functionalities:

• Account 360° View : Gain a complete view of an account’s hierarchies and key relationships, as well as visibility into all engagement activity across channels.
• Real-time Data & Insights on Account Performance:   Get real-time insights, from a range of commercial data sources, across all aspects of your key account performance.
• Integrated Trade Promotions:   Optimize trade spend  and   target key customers   by displaying a real-time view into promotion performance, inventory levels, sales order insights, budgets & funds, plans & objectives.
• Retail Execution   Checks from Field Sales Teams:   Leverage your teams in the field to check key account compliance and take promotion-based order capture with penny-perfect pricing on mobile;   online or offline .
• Digital Asset Management :   Ensuring all important business documents are centralised and accessible against the account, such as contracts and Joint Business Plans.

Check out this demo from Aforza’s Chief Product Officer, Nick Eales, as he showcases how leading Consumer Goods companies are leveraging Aforza to create productive account collaborations that unlock revenue potential like never before:

With industry-leading innovations and capabilities, the Aforza cloud & mobile solution continues to help consumer goods companies sell more and grow faster. Take the first steps now and create productive account collaborations that unlock revenue potential like never before.

Joint Business Plan: What It Is and How to Create One with Your Partners

Are you struggling to align your business goals with your partners? Look no further than a joint business plan. This collaborative approach allows for clear communication, shared expectations, and ultimately, success. Learn how to create one with our guide and take your partnership to the next level.

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Are you tired of working with partners who seemingly have different priorities? Does your business lack direction or goals that are aligned with the vision and values of your company? Well, we have good news for you! A joint business plan might just be the solution you need. A joint business plan is a powerful tool that enables you and your partners to set clear objectives, develop strategies, allocate responsibilities, and align your efforts toward a shared vision. So, whether your business is just taking off or it’s been around for a while, a joint business plan can help ensure its success. In this article, we will guide you through the process of creating a joint business plan with your partners, step by step. Trust us; this is something you don’t want to miss!

Table of Contents

1. unleashing the power of joint business plans, 2. why joint business planning is crucial for your partnership, 3. collaboration that works: how to create joint business plans, 4. the benefits of joint business planning, 5. step-by-step guide to crafting joint business plans, 6. assessing your partnership: the first step in joint business planning, 7. aligning your goals: a key element in crafting joint business plans, 8. creating the perfect joint business plan: tips and strategies, 9. implementing and executing your joint business plan, 10. evaluation and review: tools for improving your joint business plan, 11. taking your partnership to the next level with joint business planning.

• 12. Closing Thoughts: Harnessing the Power of Collaboration with Joint Business Planning

Our Readers Ask

Final thoughts.

Joint business plans (JBPs) are the secret recipe for unlocking formidable results in business. JBPs involve collaboration between two or more companies to craft a strategic plan aimed at delivering mutual benefits. When companies partner using JBPs, they can leverage each other’s strengths and use them for the benefit of the collective. This strategic collaboration also enables companies to share risks, maximize profits and enhance their competitive advantages.

Successful JBPs require comprehensive planning, execution, and review. Companies involved in JBPs must align their visions and goals to minimize conflicts and create a symbiotic relationship. With proper planning and strategy, JBPs can help companies create fresh opportunities, increase market share, boost sales, and drive innovation. By working together, companies can achieve what they would have failed to accomplish independently. It’s high time businesses embraced JBPs as they have a proven track record of expanding boundaries and growing businesses beyond what they thought possible. Through JBPs, businesses can harness existing experience, put their strengths to work, and foster productive partnerships to achieve valuable results.

Joint business planning is an essential aspect of building a successful partnership. At the heart of any partnership is the goal of achieving shared success, but this can’t be achieved without a clear plan in place. Joint business planning involves setting out a detailed, actionable plan that identifies specific goals, milestones, and responsibilities. Successful partnerships are built on a foundation of collaboration, and joint business planning is the cornerstone of this.

One of the key benefits of joint business planning is that it creates a shared understanding of what success looks like. This helps all parties to work towards the same goals, aligning their efforts to achieve a common purpose. Joint business planning also promotes accountability and transparency, providing a clear framework for measuring progress and evaluating success. By working together to develop a joint business plan, all parties have a clear view of what needs to be done, how it will be achieved, and who is responsible for delivering it. In short, joint business planning is crucial for any partnership that wants to achieve sustained success.

Creating joint business plans can lead to effective collaboration between businesses. When creating these types of plans, it’s crucial to have a clear understanding of each other’s objectives and goals. By working together, businesses can help each other identify any potential roadblocks and develop strategies to overcome them.

When developing a joint business plan, communication is key. Each party should be open to sharing their ideas and concerns. It’s essential to discuss each other’s strengths and weaknesses and to create a plan that will allow both businesses to benefit. By working together, businesses can find new opportunities to grow their customer base and improve their products and services. To ensure that the plan is successful, both parties should commit to it and stay focused on the end goal.

Joint business planning is a powerful approach that brings together two or more companies to work together strategically. It involves close collaboration to achieve common goals, share resources, and most importantly, boost profitability. The idea behind joint business planning is to create a win-win situation for all companies involved.

One of the significant benefits of joint business planning is stronger relationships between companies. This approach helps to foster positive relationships between partners, which can lead to long-term collaboration. Moreover, joint business planning allows each business to bring its strengths to the table. This helps to create a much stronger overall strategy, which can be leveraged to gain a competitive advantage. In turn, this can lead to increased revenue and profitability for all parties involved. Joint business planning is a valuable tool for any company looking to expand its revenue streams and reach new customers while maintaining quality relationships with its partners.

Crafting a joint business plan with your partner can be a daunting process. But don’t worry, we have compiled a step-by-step guide to make this process as smooth as possible. So grab your favorite drink, sit back, and let’s get started!

1. Align your Goals & Objectives: The first step in crafting a successful joint business plan is aligning your goals and objectives with your partner. It is crucial to have a clear understanding of each other’s vision, values, and desired outcomes. Identify your strengths, weaknesses, opportunities, and threats to come up with a plan that leverages both partners’ strengths and mitigates weaknesses. Keep an open mind and be flexible as the process of aligning your goals can take time. Remember, the goal is to build a sustainable and mutually beneficial partnership. 2. Identify KPIs & Milestones: Once you have aligned your goals, it’s time to get down to business and identify the key performance indicators (KPIs) and milestones that will help measure progress towards your goals. These KPIs should be specific, measurable, achievable, relevant, and time-bound. It’s also essential to set realistic milestones that will help you track progress against the plan. The key is to focus on a few critical KPIs and milestones that will drive the desired outcomes. Remember, it’s better to have a few well-defined KPIs than too many that can cause confusion and lack of focus.

Assessing your partnership is the crucial first step in joint business planning. Your success in business hinges on the strength and health of your partnership, so it’s crucial to determine and evaluate where you stand in terms of communication exchange, accountability, and performance.

It’s essential to assess if you and your partner(s) have a clear understanding of roles, responsibilities, and goals. This process involves reviewing each partner’s contribution to the business, identifying strengths and weaknesses, and decision-making strategies. We recommend identifying Critical Success Factors (CSFs) to measure the progress of your partnership. CSFs could include customer satisfaction, productivity, quality of work, and timely completion of tasks. This assessment should be repeated at regular intervals, at least once a year.

When crafting joint business plans, aligning your goals with your partner’s is crucial. Without this, you may find yourselves hitting roadblocks or even worse, going in completely opposite directions. To avoid this, it’s essential to communicate clearly and frequently with your partner and make sure everyone is on the same page.

One effective way to align goals is to create a shared vision. This should include a clear understanding of what both parties hope to achieve and how it will benefit each other. Don’t be afraid to brainstorm and get creative in generating ideas for this vision. Once it’s established, use it as a reference point and constantly refer back to ensure you’re both working towards the same goals. With a clear vision in place, you’ll have the foundation needed to drive your joint business plan forward.

Joint business plans are essential for successful partnerships, and creating the perfect one requires careful planning and execution. A well-crafted business plan can help you and your partner brainstorm innovative ideas, establish goals, and identify potential challenges and solutions. To ensure that you create a joint business plan that meets both of your expectations, consider the following tips and strategies.

1. Define your goals and objectives: Before starting, it’s essential to define the goals and objectives of your partnership. Take the time to understand each other’s business priorities, strengths, and weaknesses, and how you can complement each other. Clarifying your goals will help you set the direction for the business plan.

2. Communication is critical: Good communication is vital when creating a joint business plan. Make sure you and your partner are on the same page and have open lines of communication throughout the process to capture new ideas and avoid misunderstandings. Regular meetings and progress updates will also help keep everyone aligned and ensure that you stay on track toward your goals. With these tips and strategies, your partnership can be successful and result in a formidable joint business plan.

Now that you and your partner have crafted a comprehensive joint business plan, it’s time to put it into action. The success of your partnership relies heavily on how well you execute the plan. In this section, we’ll cover some essential steps to take in implementing your joint business plan.

First, it’s vital to assign responsibilities correctly. You and your partner should establish clear roles and expectations for each team member involved. Don’t leave any room for confusion or ambiguity. Next, create a timeline with specific deadlines for action items. Once you’ve established a timeline, stick to it as closely as possible. Make sure to communicate frequently with your partner to make sure progress is being made. Lastly, be prepared to make some adjustments along the way, as things may arise that are beyond your control. By working together proactively and communicating effectively, you can successfully execute your joint business plan and achieve your business objectives.

As with any business strategy, evaluating and reviewing your joint business plan is crucial to its success. By doing so, you can identify areas where you need to adjust your approach and make changes that will help you achieve your goals. Fortunately, there are several tools you can use to make this process easier.

First, consider using a SWOT analysis. This involves analyzing your plan’s strengths, weaknesses, opportunities, and threats. You can use this information to refine your strategy and make it more effective. Other tools include regular check-ins with your partner, tracking your progress with specific metrics, and seeking feedback from customers and other stakeholders. Whatever method you choose, make sure you are regularly evaluating your plan’s effectiveness and making changes as needed to stay on track.

Another critical tool for improving your joint business plan is to conduct regular reviews. This can involve reviewing your progress against your goals, analyzing any roadblocks or challenges you’ve encountered, and brainstorming new ideas for growth and development. These reviews should be conducted on a regular basis and involve all stakeholders to ensure that everyone is on the same page and working towards the same goals. By taking the time to evaluate and review your plan, you can ensure that you are always moving forward and continually improving your partnership.

Now that you have established a great partnership with another business, it’s time to take things to the next level. Joint Business Planning is a strategic process that allows both businesses to work together to create a plan that benefits all parties involved. This is an excellent opportunity to align goals, prioritize initiatives, and create a roadmap for success.

Joint Business Planning involves collaboration, communication, and open-mindedness. Both businesses should be willing to share insights, resources, and challenges to achieve the best possible outcomes. Through this process, you can identify opportunities to grow revenue, increase market share, and optimize operations. Moreover, this process ensures that both parties are on the same page in terms of timelines, budgets, and expected outcomes.

Here are some tips to ensure that your Joint Business Planning process is successful:

-Create a shared vision and mission statement that aligns with both businesses’ core values and objectives. -Develop a clear methodology that outlines goals, strategies, and metrics for success. -Identify areas of expertise and assign individuals to take responsibility for specific tasks. -Set realistic timelines and budgets for project phases. -Be transparent, open-minded, and willing to compromise for the greater good.

By investing time and effort in Joint Business Planning, you can take your partnership to the next level and achieve great things together.

12. Harnessing the Power of Collaboration with Joint Business Planning

Joint Business Planning (JBP) is not just another fancy corporate buzzword. It represents a powerful tool that allows collaborators to examine their respective strengths and weaknesses to achieve a common goal. Collaborative teamwork that rests on transparency, honesty, and mutual trust is key to the success of a JBP. In this era of intense competition, JBP has become an essential component of the business strategy that enables companies to survive and grow. Therefore, companies that are willing to harness the power of collaboration as facilitated by JBP are best positioned to succeed in today’s marketplace.

Remember, the JBP process is not a one-time event. It is a continuous process that requires the active participation and commitment of all parties involved. JBP has proven to enhance cohesiveness, efficiency and ultimately the profitability of businesses. It gives the collaborators the best chance of achieving their goals in a way that benefits all parties. Harnessing the power of JBP enables businesses to save costs, reduce risks, and increase revenues by tapping into the knowledge, resources, and expertise of others with complementary skills. So, put your ego aside, and start exploring the benefits of JBP, as it is a proven method to achieve success in the world of commerce.

Q: What is a joint business plan? A: A joint business plan is a document created in collaboration with your business partners that outlines key objectives, strategies, tactics, and timelines for achieving common goals. It’s essentially a roadmap for success that everyone can agree on and work towards achieving.

Q: Why is creating a joint business plan essential? A: Creating a joint business plan is crucial because it helps align the objectives and strategies of all parties involved. It reduces misunderstandings and conflicts that may arise from different interpretations of goals and expectations. Additionally, it ensures that everyone is on the same page and working towards the same end result.

Q: How do you create a joint business plan with your partners? A: To create a joint business plan, start by coordinating with your partners to determine shared objectives, values, and priorities. Next, identify key performance indicators (KPIs) and milestones to help measure progress and track success. Develop targeted strategies and tactics for achieving these goals, and establish clear timelines and accountability measures.

Q: Who should be involved in the joint business plan process? A: Ideally, all partners should be involved in the joint business plan process. This includes stakeholders, executives, managers, and other key decision-makers. However, the specific roles and responsibilities of each individual may vary depending on the nature of the partnership and the goals outlined in the plan.

Q: What are some benefits of using a joint business plan? A: The benefits of using a joint business plan are many. It helps increase accountability, promote collaboration, and improve communication between partners. It also helps avoid misunderstandings and conflicts that can arise from differing interpretations of goals and expectations. Overall, it’s a powerful tool for achieving business success.

Now that you know about joint business plans, it’s time to take the leap with your partners and start creating a practical roadmap for your business. With a solid plan in place, you can achieve your goals faster and achieve success with ease. Remember, collaboration is key in every business, and in joint planning, you get to leverage the strengths of every partner, to maximize your output. So, don’t hold back, get your partners together, and create an effective joint business plan today. Trust me; it’s the best decision you’ll make for your business!

Business Writer

A dynamic business writer with a talent for uncovering the latest trends and innovations in the world of startups and entrepreneurship. With a background in finance and a passion for storytelling, Morgan’s articles offer a unique perspective on the challenges and opportunities facing today’s business leaders.

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Ten Best Practices for Better Joint Business Planning

We recently led an alliance team through an alliance business planning session.  Through that process we captured a number of best practices that lead to better business planning and ultimately better performing alliances.  Here is what we learned:

•  Develop the business plan with your partner.  Successful alliances are win/win/win . Your partners’ strategic objectives, resources, commitment and creative insight are critical to the process and to a successful outcome for you, your partner, and your joint customers.
• Use the templates and checklists as stimuli for thought not a rigid formula.  Your alliance is unique. The value creation thought process and business plan should reflect that.
• Build from the specific to the general.   You may find that over several initiatives you have 80% commonality, but it is that 20% differential that makes for a successful joint offer.  Specifics make an impact – generalizations put you to sleep.
• Articulate the differentiation in the solution clearly, unambiguously. Contrast with the competition…50% more scalable than .
• Individual value propositions should include specific descriptions of how value is created, so that a reader not in the alliance understands it. You will be describing the value of this alliance to executive management and other stakeholders.
• Include customer value and metrics .Hard metrics on customer value ie. “reduces deployment costs by 7%”, gives you a compelling reason to get in the door with customer decision makers and energizes the sales teams to engage collaboratively.  Value props that impact customer business model are especially compelling i.e. increased competitive advantage for your customer. Focusing on your customer maintains common vision between partners.
• Keep focus on specifics: – “saving millions per drill head” is a more powerful vision than ‘saving costs’; “ saving up to $5M per well” even better! Same for alliance objectives, again, the best have very clear, numerically stated objectives for both partners and customer.
• For each metric establish a baseline “where you are today” and a goal “where you want to be in 6 mo, 1 yr”
• Identify risks and obstacles to success and include risk mitigation and contingency plans
• Evaluate your sales and marketing value props from the sales perspective.  Are they strong enough to compel you sales teams to want to sell with a partner?
• Bonus Best Practice: Relationship strength is critical in an alliance.  Measure it regularly via partner health checks and proactively manage the relationship.

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JBP: The Brave Approach to Writing a Joint Business Plan

Written By:

How you can take the Brave Approach to Writing a Joint Business Plan – JBP – with a UK Supermarket:

Writing a Joint Business Plan (JBP), creating Joint Business plans, JBPs, or terms negotiations, as they can be known, are all relatively new phenomena in the world of supermarkets and suppliers. Whilst some supermarkets and suppliers, particularly the brands, have talked about joint business planning for some time, it is only in the last few years that it has become ‘business as usual’. Now featured in industry news and some Joint Business Plans are published online – This JBP is for Tesco and Nestle in Poland.

The first moves towards a JBP were made when Category Management and ECR made an appearance in the 1990s with tools like the Category Scorecard. Hard-nosed buyers and sceptical account managers reluctantly dipped their toes in the water of true collaboration. Though, as Stephen Covey writes in Habit 4 win:win, the only way forward is together for mutual benefit. The definition of joint business planning is to work with a collaborative mindset towards mutual goals agreed upon for the benefit of the supermarket, supplier and shopper.

The Brave Approach to Writing a Joint Business Plan with a UK Supermarket is about helping UK supermarket suppliers to identify their true business objectives . Also, to understand what is strategic planning, identify the business terms and create a business plan that is worth having for both parties. Here are 7 brave moves that should be taken in The Brave Approach to Writing a Joint Business Plan with a UK Supermarket. This is because a supplier that does, will be best in class:

1. Stating the Blindingly Obvious – A Joint Business Plan is All About Trust

In Accenture’s free report on joint business planning, they talk of a change in mindset for both parties to achieve ‘Increased trust among parties’. And, of course, Accenture is right that trust is absolutely essential for a joint business plan to be effective. Plus, the IGD industry survey on Category Management Capability and Partnership of 2014, said that ‘Too often trust is the biggest barrier to putting any proposal into action’.

The challenge is that trust is hard to build and even harder to understand, particularly for people representing two large companies, where the aim is to make as much money as you can, usually by giving the other party less.

Discussing trust can be a sensitive topic and a brave topic to raise. Doing so provides a solid foundation to build upon. The simple choice is to either raise these issues now or to become frustrated when nothing happens. Better now because both parties are wanting to build a future together.

Action: Add ‘Building further trust’ as an early agenda point in your joint business planning meeting.

2. KISS is the Route that Succeeds Most with Joint Business Plans

KISS is a mnemonic that is often said and rarely used. In joint business planning the watch out is not to write a joint business plan together where people spend days locked away in darkened rooms solving the vision, the big category problems, discussing shopper switching, the next range review, why promotions don’t work, and the ‘kitchen sink’. The challenge and the brave approach is to work on less to achieve more.

Scoping what both parties want to achieve is essential and then identifying the 80:20 of those items. The objectives will be easily identified and usually around, ‘To write a joint business plan that delivers x growth/market share/sales by <date>’. The scope is hard. The important part because it might be just to complete a simple one-page document showing:

• Category Targets
• Category Measures
• Enabling Big Projects
• Project Milestones
• Ways of Working

This document could be just one page. But it is a bought-in, thrashed and motivating page. A page that both parties agree to start with and then review in 3 months. An 18-month plan is about the right timescale to tackle a joint business plan. There are those that will advocate 3 years and even 5-year business plans are needed. The challenge is that most supermarket buyers will not be in place beyond 18 months, and many account managers too.

Action: Agree on the scope of the joint business plan. Divide a page into two, headed up with the scope and then 2 columns; In and Out. Agree on what is in scope, e.g. Discussions that are big picture and what is out of scope, e.g. The day-to-day detail.

3. Naming the Big Project Outcomes is the Key to Success

In our Time Management Training course we talk with the learners about the importance of having a project list and describe the daily to-do list as the wheels of a car, and the project list as the steering wheel. Those without a project list fail to steer towards their KPIs and KRAs , preferring to work on the day-to-day, refusing to acknowledge the big stuff and claiming that they are ‘too busy’.

The same is true of joint business plans and the key is to define the outcome. Instead of writing ‘Promotions Project’, change it to a project outcome title, which could be ‘Promotions Adding Sales of £5m p.a.’. Whilst a subtle change, the difference is that if no traction is made the impact is obvious – £5m lost. Plus, it is less likely that the person will remove the project when the outcome is obvious, and the project owner can genuinely begin with the end in mind – £5m sales to identify.

Making traction on the big projects is essential to see early progress on joint business planning. For each big project, the collaborators need to agree on the first 3 practical and simple actions. These 3 actions will get the project moving. Even if those actions are to get together for 1 hour to brainstorm. Maybe brainstorm how to achieve £5m additional sales from promotions. It is imperative that these debates are not tackled at the Business Planning meeting. This is because it is ‘scope creep’. Which means that it is against the scope that was agreed. Plus, the meeting will achieve very little because too much is trying to be achieved.

Action: Change project titles to project outcomes and agree on the first 3 practical and simple steps for each project.

4. A Simple Dashboard Every 2 Weeks to Keep Things Moving

The experience of most people is that business plans are built with love and sit on a shelf with hate. Their examples have taught them that joint business planning is a necessary evil and ultimately achieves very little.

The brave move is to change your mindset. Get out of the self-fulfilling prophecy, by doing Joint Business Plans differently to the last 10 times. Helping to achieve that is a simple dashboard showing the Category Targets, Category Measures, Enabling Big Projects, Project Milestones, & Ways of Working and most importantly, the progress, with a short commentary. Ideally, on one page, the dashboard is published every 2 weeks. Fortnightly because 1 week is not long enough to see progress and one month is too long if progress is going off-course.

By having a dashboard the joint business plan is kept alive.

Action: Propose a simple dashboard that is to be published every 2 weeks, for the group to approve.

Free Download: JBP Template

Please contact us if you have any questions, 5. reviewing the joint business plan quarterly together.

A smaller team is a brave move. This is because, during the landing of Category Management and ECR in the 90s, the supermarket team and the supplier team would be around 12 people each.

Whilst this was more a demonstration of collaboration and ‘equalling the fight’ than anything else, progress was slow. Nowadays a smaller team can achieve more if they accept that their accountability is to get the information, persuade the other departments, and basically make progress, not being able to cite every other department in their company as the reason for not achieving the required progress.

A smaller team should meet every quarter with the only point on the agenda to discuss the joint business plan. These dates need to be diarised for the full 18 months. Again, the scope is important because the temptation will be to discuss the other 100 issues that need addressing. But bravely accepting that the joint business plan, if delivered, will achieve everyone’s goals, then this is the only topic of discussion.

Beginning with a refresh of what the joint business plan looks like, the agenda should look like this:

• Refresh the joint business plan.
• Ways of Working – Have these been adhered to? What else needs to be done?
• Performance Vs the agreed targets.
• Project progress Vs the agreed milestones.
• Discuss the usefulness of the dashboard, not being tempted to make it too onerous.
• Run through the actions stating what, who and when very clearly and emailed before everyone leaves. Our top tip is to capture actions on email as the meeting progresses. Not afterwards because each one is likely to be re-debated.
• Agree on the date of the next meeting.

Action: Propose dates for the next 18 months and a suggested agenda.

6. Strategic Thinking is the Essential Skill

In the most recent IGD trading survey both suppliers and supermarkets ranked ‘strategic alignment’ and ‘long term planning’ as important now and even more important in the future. The supermarkets said that having these skills was what a supermarket would expect from a ‘best in class’ supplier. Strategic Thinking , as well as being one of those overly used terms and mystifying skills, has now become essential to joint business planning. So much so that job advertisements are asking for applicants to have joint business planning experience. Strategic thinking, strategic planning, and having strategic objectives are about being able to see the big picture, identify insights with high impact and make them happen. The skills of joint business planning are the same, as well as an effective use of some negotiation skills.

The brave move would be to initiate a joint business plan with the supermarket and begin to implement this roadmap to category growth. Action: Read this post on strategic thinking and consider an executive coach to prepare you for your next JBP so that you are the best version of yourself when you negotiate, share your big-picture thoughts and discuss trust.

7. These Critical Meetings are ‘Must Win Meetings’ for Any Supermarket Supplier

Initiating, or being invited to a Joint Business Plan meeting, is pivotal to every supplier because, of course, terms are negotiated and the outcome will have a high impact on the supplier’s annual performance, but also a Joint Business Plan meeting is an opportunity to demonstrate ‘best in class’. Best in class for category understanding, shopper understanding, supermarket understanding, possible solutions, and how to manage these plans to make them work.

For these reasons, the preparation for a must-win meeting must be to achieve the old adage of ‘sweat in training, no need to bleed in battle’. Role plays are an undervalued tool for preparing and for getting the heads-up on those things that could not be predicted and are yet to happen. When millions of pounds can be at stake for one meeting, it pays to be prepared, and ask the experts for help to be the very best version possible.

Action: Book a role play with a suitable colleague/s so that you can sweat in training, or contact us for help. See our Fyffes testimonial for how we supported them.

A Summary of the 7 Brave Moves 

Here is a summary of the 7 brave moves that should be taken in The Brave Approach to Writing a Joint Business Plan with a UK Supermarket because a supplier that does, will be best in class:

• Stating the blindingly obvious – It’s all about trust.
• KISS is the route that succeeds most with joint business plans.
• Naming the Big Project Outcomes is the Key to Success.
• A Simple Dashboard Every 2 Weeks to Keep Things Moving.
• Reviewing the Joint Business Plan Quarterly Together.
• Strategic Thinking is the Essential Skill.
• JBP Meetings are ‘Must Win Meetings’ for Any Supermarket Supplier.

What is your top tip for writing a JBP? Please share your view by commenting at the end of this article.

Creating a JBP that Includes the Required Elements of the Groceries Code Adjudicator 

Only 1 in 2 Suppliers has a written supply agreement according to research by the Groceries Code Adjudicator (Slide 16). A written supply agreement is often a joint business plan. Therefore here is a checklist of often-forgotten items that should form part of the written supply agreement/JBP:

• Payment terms
• Marketing costs, e.g. artwork, packaging, consumer research, or hospitality
• Payments for wastage

A Must Win Meeting Masterclass is only £750+vat for up to 12 people (£62.50 per person). Contact us to book.

Feel free to get in touch. Simply fill out the form below or email us at  [email protected] , and we will be happy to get back to you with further information.

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Top 10 Joint Business Planning Templates with Examples and Samples

Siranjeev Santhanam

If there’s one ingredient behind the success of large and powerful corporations, it is teamwork and collaboration. When corporate entities break down barriers and engage in open communication with mutual respect and a shared vision, great results follow. This collective spirit is the fuel behind some of the business world’s greatest achievements, from epoch-defining products like the iPhone to new and disruptive industries such as clean energy, generative AI and private space travel. 

Companies that dominate their field understand the immense potential of joint ventures and strategic alliances. They can help a firm unlock new opportunities, gain the competitive edge, and achieve shared goals that would be beyond the reach of any single entity by itself. At the heart of these successful collaborations lies a crucial element: joint business planning.

Are you planning to start a coffee shop? We’ve got something made just for you. Click here and peruse our other blog on some must have coffee shop business plan templates now. 

Such endeavours are crucial to the world of business, and they serve critical advantages. Managers can harness the power of joint business planning to define the purpose and objectives of a project, to align companies’ strategic goals and priorities across departments, and develop a comprehensive action plan with defined roles and responsibilities.

In this blog, we’re going to be taking a look at some joint business planning templates. These pre-designed slides offer a creative canvas upon which you can regulate your business procedures, imposing clarity and cogency during such brainstorming sessions within the corporations. 

Are you seeking to understand strategic planning better? Then let us lead the way. Click here and check out SlideTeam’s other blog focussed on five-year strategic business plan templates now. 

Template 1 - Joint Business Plan Five-Process Steps

This slide offers a simple and easy method of measuring the effectiveness of a joint business plan, with five separate phases. Foundation, discover and align, initiative planning, execute and monitor and review are the constituent phases of the slide. These offer a solid foundation upon which a team leader can create a productive and fruitful business meeting. 

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Template 2 - Joint business plan including consumer and retailer

This template has been molded to serve a consumer-retailer dynamic, and incorporates a simple but powerful methodology that can raise efficiency during joint business planning. The five stages of the slide are foundation, discover and align, initiative planning, execute and monitor and review. There is room for never ending customization with the slide and its internal substance. Make use of this simple one-page PPT to bring more fervor to your strategic business partnerships. 

Template 3 – 5-steps process of joint business plan

Embrace the power of joint business planning with this one-page slide that aims to tap into the transformative potential of strategic collaboration. It has been divided into five phases and each phase comes with the benefit of small, segregated content brackets where managers can add sufficient notes for the meeting. Inspire and strengthen your partnerships and ignite synergies that transcend corporate boundaries by taking advantage of this template.

Template 4 - Three phases o f joint business plan

Recognize the pivotal need for collaboration in business and harness it to its full capacity. This one-page PPT can assist you in this, with three critical phases that underpin the joint business planning process. Execution - alignment and analysis, company and account strategic planning, and scenario modelling are the three elements of this template. Use this slide to catalyze growth within your corporation and unleash new partnerships that bring revenue into your firm. 

Template 5 - Joint Business Planning Observations Sheet

This one-page slide is a PowerPoint sheet crafted to create stronger channels of growth. The slide has been segmented into three areas - insights, observations and implications. There are other pivotal elements incorporated into the slide that are central to the joint planning process, such as assortment, pricing and promotions, and marketing. Lay the groundwork for a solid partnership by establishing a strong foundation for collaboration, co-operation and shared business, by downloading and utilizing this slide.

Template 6 - Steps to improve joint business plan result 

This PPT Template, a one-page slide, is a great asset for firms engaging in a partnership, allowing managers to capitalize on the synergy of the partnership to drive tangible results. Two segments make this slide a class apart, the retailer and supplier relationship, with subheadings incorporated across the breadth of the slide such as develop plans, identify strategy and goals, and a list of smaller segments that can be calibrated to serve partnership needs, such as identifying mutual opportunities, developing a joint category, and more. 

Template 7 Joint Business Planning Strategies to Accelerate Growth

This slide is made with the goal of strengthening strategic partnerships in business and creating a culture of adaptation and growth within your joint venture. The subheadings layered into the PPT are improve operations, deliver improved customer value, traffic building, disruptive innovation, etc. There are smaller content brackets for comments underneath each segment. Use this one-page PPT to monitor progress in your efforts, plant the seeds of success, and identify areas for improvement. 

Template 8 Joint Business Planning Icon to Retain Partner Engagement

This PPT Template acts as a blank canvas that you can tailor to suit specific needs. With its capacity for boundless customization, the slide can act as a backdrop for a strong and integrated joint planning process. Integrate your own unique brand identity into the fabric of this powerful tool. Its minimalist aesthetic is sure to appeal to the business environment, allowing managers to weave intricate details into the presentation with ease to gain maximum results. Get it now. 

Template 9 - Meeting goals of joint business plan

Take control of the meeting and impose a powerful collaborative environment, all with the aid of this sufficiently designed, one page template. It features a list of components that make for an effective joint business plan, such as understanding from both sides, increase trust between parties, more transparency and visibility, joint ownership responsibility to work and progressive sharing of plan. Download this slide and harness its contents to unleash a truly productive business alliance that works wonders. 

Template 10 - Emerging Trends in Joint Business Planning

This PPT Slide is a powerful tool for managers seeking to understand the utilities of a joint business plan. It lists a series of emerging trends within this specific niche, all of them color-coded and further enhanced with content brackets underneath. Cost effective collaboration, reliable supply chain, data driven efficiency and sustainable initiatives are the components of this slide. Take advantage of this PPT to create an integrated business planning methodology that works out for both sides during such an exchange. 

SYNERGY IS IMMENSELY POWERFUL

The synergy of large groups of people working in harmony powers the world of business. Joint business planning events are more than mundane meeting events where suits work to raise shareholder value. These can be vibrant meeting events that help to cultivate a sense of shared responsibility and collective zeal among the workers of two corporations, giving them the ability to achieve more. Our pre-designed templates can act as a valuable framework where you address the aspects of a joint business meeting. Fully harness the structure, key elements, and internal content of these slides to gain the most out of your joint business meetings, setting your collaborations on a path to success.

PS Are you working to initiate a car dealership business? Rest your anxieties, we’ve got just what you need. Click here and read our other blog on must have car dealership business plan templates. 

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Home » Business Plan Tips

How to Write a Joint Venture Business Plan

A joint venture business plan is a document that defines a business arrangement between two or more companies. Just as with a normal business plan, this plan also includes numerous sections and extensively describes the aim, companies, and responsibilities of each company in the joint venture. This plan also outlines temporary activities that help to attain specific goals.

Coming together to form a joint venture is nothing new in the business world. However, the real deal is to have an arrangement that equally protects the interests of each party so that everyone in the joint venture can put their best creative foot forward. Have it in mind that the best way to guarantee all parties understand their obligations and are fully participating is to put together a detailed joint venture business plan .

Although each company in the venture can put together the business plan, a legal review is often recommended to validate if the plan is legitimate. These plans are also known to be above and beyond a standard business plan. Most often, the plans will vary based on the specifics and interests of each party in the arrangement.

Steps to Write a Joint Venture Business Plan

Forming a joint venture involves several critical steps that begin with identifying and analyzing a viable joint venture partner to agree with. This sort of agreement requires well-detailed documentation and other allied/ancillary agreements. To write a solid joint venture business plan, here are steps to take;

Step 1: Write a Detailed Company Profile

Although this wouldn’t be the first page of your joint venture business plan, it is often recommended you start the writing process by first providing a brief description of each company involved in the joint venture. You have to include the management teams of each company, the resources, or goods available, and every other detail vital to the joint venture.

Consider creating a profile to briefly describe the partners in the agreement. You should also outline the expertise of each company and the reason for inclusion in the joint venture. You may also have to write a statement on the purpose of the joint venture as well.

Step 2: Spell Out your Marketing Strategies

The next step will be to discuss the market strategies you intend to leverage to achieve success for the joint venture. Just as with a normal business plan, it needs to define the market the goods and services are meant for. This section will also need to contain a thoroughly done analysis, graphs, and all other vital information that describes the market and why the joint venture will attain success.

Most often, companies in the agreement are advised to cooperate on this section to put together an analysis from each partner. Have in mind that the length and detail of this section will depend on the purpose of the joint venture; a competitive analysis may also be necessary.

Step 3: Input your Financial Projections

Note that every joint venture business plan is expected to include financial projections. While this may be the final section of the business plan, it will include information specific to product prices and cost of goods or services sold, and possible expenses from the activities.

You may need to include Pro forma financial statements in this section. Note that these statements provide a formal look at potential profits and let banks or lenders properly evaluate the venture’s possibility for success. Other statements or documents may also be included in this section.

Step 4: Your Executive Summary

Although the Executive Summary will be the first page of the joint venture business plan, it is always recommended you write it last. This page of your joint venture business plan provides a concise view of the business agreement. Depending on the joint venture activities, the section of the business plan will span anywhere from a few paragraphs to a few pages.

Important Clauses to Include in a Joint Venture Business Plan

A joint venture business plan is the bedrock of any joint venture. It outlines the objective and purpose of the joint venture. Have in mind there are ideal clauses a joint venture agreement is expected to contain. Here are very important clauses that should be inserted in the joint venture business plan:

Definitions

It is critical for every business plan to have a clause that defines all the necessary terms in the plan. This is primarily to avoid any form of misunderstanding and misinterpretation in the plan. Have it in mind that certain words or terms are given confining definitions for the purpose of interpretation of the plan. This clause will help guarantee a mutual understanding between the parties as to what a certain term means.

Parties to the Joint Venture

A joint venture business plan is meant to identify all the parties involved in a joint venture. Have in mind that there is a possibility that the original party won’t be the investing party, and the investing party may be the parent company of the original party. In such circumstances, this clause is very necessary to ensure that the joint venture agreement is binding to the investing parties as well as the original parties.

Nature of the Relationship

This is one of the most vital functions of the joint venture business plan. This clause in a business plan is meant is to outline the nature of the relationship between the joint partners, whether the parties owe any contractual obligations to one another, or whether the arrangement is just a contractual relationship where each party remains at arm’s length.

Business Objectives and Purpose of the Joint Venture

Note that this clause outlines the purpose why the joint venture was established. There are numerous reasons why businesses enter into a joint venture, from expanding their markets to completing a specific project. The purpose of the joint venture will need to be extensively considered before proceeding with finding a joint venture partner.

The Structure of the Joint Venture

This clause will have to include details about what structure the joint venture will be, such as an LLC, LLP, or incorporated. This clause shall also contain the details of the formation of the joint venture thereof. It shall also mention the registered office and the location where the joint venture will be carrying out its business.

Parties’ Contributions

This clause will note if the work will be split 50/50, who’s bringing what to the table, and what you can expect from the other person or company. Outlining this in your joint venture business plan in detail will ensure that all partner’s expectations are aligned. This is to ensure that each party understands what they will be committing to the venture, and also to ensure that they are bound by that commitment.

Distribution of Shares

The shareholding of all the partners will have to be outlined under this clause. Note that the distribution of shares is a very important aspect as the shareholdings will more or less dictate the proportion of ownership among shareholders.

Note that distributions of shares must not be 50:50; they can vary depending on the agreement between all parties. The shares can be distributed by a mutually agreed ratio or based on the capital contribution of the parties.

Rights and Obligations of the Parties

Indeed every party in a joint venture has certain rights that they can exercise and certain obligations. In the joint venture business plan, this clause will have to explain in detail everything that is expected from the parties. This is to limit or avoid future disputes and misunderstandings.

Joint venture business plans will need to explain who will manage the venture and take care of its day-to-day operations. It will also specify different levels of approval for different types of decisions.

Some joint ventures agree to establish a management committee instead of appointing the board of directors where the joint venture has been entered into for a particular short-term project. The mode of management needs to be explicitly outlined in the joint venture business plan.

Representation and Warranties

Note that these are statements of fact made by the parties entering into the joint venture. Representations and warranties are more or less made before entering into an agreement and such representations and warranties will also have to be mentioned in the joint venture business plan.

Representations and warranties are necessary so that the parties have adequate and vital information about each other such as financial standings of the parties or the loans taken by the parties, pending litigation, etc.

Indemnity Clause

Indemnity is a legal obligation on the parties to compensate the other party in case of breach of any contractual obligation. Most often, the party that suffers due to a breach of representations and warranties is entitled to be indemnified for the losses. Have it in mind that the indemnity clause will have to be fair, mutually agreed upon, and well balanced. The language and scope of this clause will also need to be clear and precise.

Dispute Resolution

In all business arrangements, there are bound to have disagreements and issues. While these issues will not always lead to litigation, it is recommended that all parties agree on a mechanism to deal with such situations.

Each party in a joint venture can be from different jurisdictions and governed by varying laws. Therefore the mechanism to resort to in case a dispute arises will need to be mutually agreed upon by the parties and explicitly noted in the plan.

Non-compete clause

This is a very important clause to include in a joint venture business plan. Depending on the nature of the agreement, it might be necessary to note that the two businesses are restricted from directly competing with one another, at least for a stipulated time. However, the non-compete clause will need to be reasonable otherwise it might be treated as a violation of a person’s fundamental right to trade.

Confidentiality

Within a joint venture agreement, parties are expected to disclose certain vital information concerning the company. Note that this information can be related to technology, trade secrets, or intellectual property. The information in the wrong hands might cause the party to incur massive losses.

This is why this clause is very important in a joint venture business plan. The clause may also need to provide that the information disclosed for the joint venture should never be used for personal gains.

Force Majeure

This clause is used to provide relief and protection to a party in a situation where the party is unable to meet some of its obligations. Note that this inability to fulfill obligations may be due to events that are totally beyond the control of the parties. The event could be a flood or an earthquake or a fire so on and so forth.

Termination

You need to understand that not every joint venture survives long and is often terminated. Owing to that, this clause will have to be included in the joint venture business plan. The termination clause centers on instances, breaches, or the occurrence of which the joint venture will be terminated.

Exit Mechanism

Even while still under an agreement, there can be many reasons why the parties would want to exit the joint venture. This could include short of funds or the joint venture going into a loss for some time. It is very common for a party to want out of the joint venture, maybe due to certain unresolved issues. Owing to that, the exit mechanism will need to be noted in the joint venture plan.

Deadlock Resolution

Deadlocks tend to arise when the parties in the joint venture have equal powers and are finding it hard to agree on a common conclusion.

Note that things like this can lead to disagreement especially when neither party is ready or willing to surrender their powers or accept the other party’s decision. While this cannot be entirely avoided in a joint venture, you should establish a mechanism that will help the parties to come to a common agreement or to resolve the deadlock.

Financial and Administrative Record Keeping

All parties in the joint venture must collaborate on maintaining their financial records. They also need to decide the process of administrative record keeping. While this may not be necessary, it is good practice for joint ventures to work with one accounting firm that is agreed upon by all members. This will help to limit the risk of any conflict of interest or complications in the future.

Intellectual Property

For joint ventures that will produce intellectual property that is of potential value to each of the parties, this clause is very necessary to avoid the risk of one party attempting to take advantage of the other’s intellectual property. This clause in the joint venture business plan should note who will own any new intellectual property created by the venture, and the extent to which the parties are permitted to use that property outside the venture.

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Joint Business Plan (JBP): Benefits, Best Practices & Objectives

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Last Updated on November 28, 2023 by Arif Chowdhury

Imagine two retail brands, each with their own unique strengths and market presence. Now picture the joint business venture, with two partnering business partners, joining forces to conquer a new market together through joint ventures. This is the power of partnering with other teams in a company – a joint business plan , where executive summaries are created to outline shared goals and maximize potential.

Collaboration is vital in today’s competitive industry landscape. By forming joint ventures, companies can pool their resources, expertise, and networks to unlock new opportunities, expand their reach, and drive growth like never before.

Joint ventures allow companies to collaborate and create stronger teams , leading to increased success. A joint business plan serves as the blueprint for this collaborative venture, outlining key objectives, strategies, and tactics that both parties will execute together.

A well-crafted joint business plan typically includes an executive summary that outlines the purpose and scope of the collaboration. It also details specific marketing initiatives such as promotions or product launches aimed at capturing the target market’s attention. It covers aspects like distribution channels, branding efforts, and sales projections to ensure alignment between both parties.

In this blog post series on joint business plans, we will explore the importance of collaboration in driving success for retailers and companies in today’s fast-paced retail industry. Collaboration is crucial for the success of ventures in the retail industry.

We will delve into the key components of an effective joint business plan and provide real-life examples to illustrate its impact. So buckle up as we embark on this exciting journey towards collaborative success!

Benefits of implementing a joint business plan

Implementing a joint business plan can bring numerous benefits to retailers and companies involved in the venture. Let’s explore some of these advantages in detail:

1. Increased Alignment and Synergy between Partners

One of the key benefits of implementing a joint business plan is the increased alignment and synergy between partners. When all parties in a joint venture are working towards a shared goal, it becomes easier to align joint venture strategies , joint venture objectives, and joint venture activities.

This alignment fosters collaboration and teamwork in the venture, allowing partners to leverage each other’s strengths and expertise.

• Better coordination between teams.
• Shared vision leads to improved decision-making.
• Enhanced trust and mutual understanding.

Example: Imagine two companies collaborating on a marketing campaign. With a joint venture business plan in place, both companies can align their messaging, target audience, and promotional activities for maximum impact.

2. Enhanced Communication and Coordination

Another significant benefit of a joint business plan is the improvement in communication and coordination among partners.

Clear channels of communication are established, ensuring that information flows seamlessly between all parties involved. This enhanced communication enables faster problem-solving, timely decision-making, and efficient resource allocation.

• Regular meetings facilitate open dialogue.
• Improved sharing of information and knowledge.
• Quick resolution of conflicts or issues.

Example: In a joint business plan between a manufacturer and distributor, regular communication helps them stay updated on market trends, customer feedback, and inventory levels. This enables them to make informed decisions regarding production volumes, delivery schedules, and product promotions.

3. Improved Resource Allocation and Cost Optimization

Implementing a joint business plan allows partners to optimize resource allocation effectively. By pooling resources together strategically, partners can reduce duplication of efforts while maximizing efficiency.

This collaborative approach also helps in identifying cost-saving opportunities by streamlining processes or leveraging economies of scale.

• Shared resources lead to reduced costs.
• Elimination of redundant activities.
• Efficient use of available assets.

Example: Two companies in the logistics industry can collaborate on a joint business plan to optimize their transportation routes, thereby reducing fuel costs, minimizing delivery times, and maximizing the utilization of their fleets.

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Best practices for successful joint business planning

1. establishing clear goals and objectives.

To ensure a successful joint business plan, it is crucial to establish clear goals and objectives . This means clearly defining what you want to achieve together with your partner or stakeholders. By setting specific targets, you can align your efforts towards a common purpose.

One way to do this is by using category management principles. This involves analyzing market trends, consumer behavior, and competitive landscape to identify opportunities for growth. By understanding the category dynamics, you can develop strategies that capitalize on market trends and consumer preferences.

2. Regular Communication and Feedback Among Stakeholders

Effective communication is key in any collaborative effort, including joint business planning. Regularly communicating with your partners and stakeholders helps maintain alignment and fosters a sense of shared responsibility.

By providing feedback throughout the planning process, you can address any issues or concerns promptly. This allows for adjustments to be made in real-time, ensuring that everyone remains on track towards achieving their goals.

3. Creating a Structured Timeline with Defined Milestones

A structured timeline with defined milestones is essential for keeping joint business planning on track. Breaking down the plan into smaller, manageable tasks helps ensure progress is made consistently.

Consider creating a Gantt chart or project timeline that outlines key activities, deadlines, and responsible parties. This visual representation provides clarity on the sequence of tasks and allows for better coordination among team members.

Establishing milestones helps measure progress along the way. Celebrating these achievements boosts morale and keeps everyone motivated throughout the planning process.

4. Developing a Win Strategy

A win strategy focuses on identifying how both parties involved can benefit from the joint business plan. It aims to create mutually beneficial outcomes that drive growth for all stakeholders.

When developing a win strategy, consider factors such as market share gains, revenue growth opportunities, cost savings through economies of scale, or access to new markets or distribution channels.

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Evaluating the progress of a joint business plan

To ensure the success of a joint business plan, it is crucial to regularly evaluate its progress. This evaluation allows you to monitor key performance indicators (KPIs), conduct reviews and assessments, and make necessary adjustments to stay on track.

Monitoring Key Performance Indicators (KPIs)

Monitoring KPIs is an essential step in evaluating the progress of a joint business plan. These performance metrics provide valuable insights into the effectiveness of your plan and help you gauge its success. By tracking KPIs, such as sales growth, revenue generated, or customer satisfaction levels, you can assess whether your joint business plan is delivering the desired results.

Some key performance indicators that are commonly monitored include:

• Sales performance: Keep an eye on how well your products or services are selling. Track factors like sales volume, average transaction value, and conversion rates.
• Promotional effectiveness: Evaluate the impact of marketing campaigns and promotions on driving sales. Measure metrics like click-through rates, website traffic generated from promotions, or coupon redemption rates.
• Product performance: Assess how well specific products are performing in terms of sales numbers, customer feedback, or market share gained.
• Customer satisfaction: Monitor customer feedback and ratings to determine if your joint business plan is meeting their expectations.

Conducting Regular Reviews and Assessments

Regular reviews and assessments are vital for evaluating the progress of a joint business plan. Schedule periodic meetings with all stakeholders involved in the partnership to discuss achievements, challenges faced, and areas that require improvement.

These reviews provide an opportunity to analyze data collected from KPI monitoring and gather insights from each party’s perspective.

During these sessions:

• Share research findings: Present any relevant market research or consumer insights that can inform decision-making processes.
• Discuss results achieved: Review the outcomes achieved so far based on set goals and objectives outlined in the joint business plan.
• Identify bottlenecks and risks: Identify any obstacles or risks that may be hindering progress and brainstorm potential solutions.
• Collaborate on adjustments: Work together to determine necessary adjustments or modifications to the joint business plan, ensuring it remains aligned with changing market dynamics.

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Making Necessary Adjustments to Stay on Track

Flexibility is key when evaluating the progress of a joint business plan. As you monitor KPIs and conduct reviews, you may identify areas where adjustments are required to maximize success. Making these necessary adjustments allows you to adapt your strategies, overcome challenges, and capitalize on emerging opportunities.

Consider the following steps for making adjustments:

• Analyze data: Examine the data collected from KPI monitoring and reviews to identify trends or patterns that require attention.
• Identify areas for improvement: Pinpoint specific areas within the joint business plan that need adjustment based on performance gaps or changing market conditions.
• Collaborate with partners: Engage in open discussions with your partners to gather their input and insights regarding potential adjustments.
• Develop action plans: Create detailed action plans outlining the necessary steps to implement changes effectively.
• Monitor results: Continuously monitor the impact of these adjustments on performance metrics and assess their effectiveness.

By regularly evaluating the progress of your joint business plan, monitoring KPIs, conducting reviews, and making necessary adjustments, you can enhance its chances of success. This iterative process ensures that your joint business plan remains aligned with evolving market dynamics and increases your likelihood of achieving mutually beneficial outcomes.

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Finding the right partner for joint business planning

Identifying the ideal partner for joint business planning is crucial to the success of any collaborative endeavor .

It requires careful consideration of various factors, including complementary strengths and expertise, compatibility in terms of values and culture, as well as conducting due diligence before entering into an agreement.

Identifying Complementary Strengths and Expertise

When seeking a business partner for joint business planning, it’s essential to identify individuals or organizations with complementary strengths and expertise. This means looking for partners who possess skills and resources that complement your own.

For example, if you’re a manufacturer looking to expand your distribution channels, partnering with a retailer or distributor who has established relationships with consumers can be highly advantageous.

Consider the following when assessing complementary strengths:

• Look for partners who excel in areas where you may have limitations or gaps.
• Seek out individuals or organizations that bring unique perspectives and capabilities to the table.
• Evaluate potential partners based on their track record of success in relevant areas.

Assessing Compatibility in Terms of Values and Culture

In addition to complementary strengths, compatibility in terms of values and culture is vital for a successful partnership. When embarking on joint business planning, you’ll be working closely together towards shared goals.

Therefore, aligning values and having a similar organizational culture can foster effective collaboration.

Here are some considerations when assessing compatibility:

• Evaluate whether your partner shares similar core values such as integrity, transparency, and customer-centricity.
• Assess whether there is alignment in terms of long-term objectives and vision.
• Consider how well your respective cultures will blend together to create a harmonious working relationship.

Conducting Due Diligence Before Entering into an Agreement

Before finalizing any partnership agreement, it’s crucial to conduct thorough due diligence. This involves gathering information about potential partners to ensure they are reliable, trustworthy, financially stable, and have a good reputation within their industry.

Here are some steps to consider during the due diligence process:

• Research: Conduct extensive research on potential partners, including their history, financials, and reputation.
• References: Reach out to their existing or past business partners to gather insights into their reliability and performance.
• Legal Assistance: Engage legal professionals to review contracts and agreements to ensure they protect your interests.
• Pilot Projects: Consider starting with small-scale pilot projects to test compatibility before committing to a long-term partnership.

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Maintaining a common vision and strategic objectives

To ensure the success of a joint business plan, it is crucial to maintain a common vision and strategic objectives with your partner. This involves aligning long-term goals and ensuring a shared understanding of strategic priorities. By continuously reinforcing the importance of collaboration, you can foster a strong partnership that drives mutual growth.

Aligning Long-Term Goals with the Partner’s Vision

When embarking on a joint business plan, it is essential to align your objectives with your partner’s vision.

This alignment ensures that both parties are working towards a common goal and have a clear understanding of each other’s expectations. By taking the time to understand your partner’s vision, you can identify areas where your goals intersect and collaborate effectively.

Ensuring Shared Understanding of Strategic Priorities

In order to execute a successful joint business plan, it is vital to establish shared understanding of strategic priorities.

This involves open communication and regular discussions about the strategies and tactics that will be employed to achieve desired outcomes. By aligning your strategies with those of your partner, you can create synergy and maximize the impact of your joint efforts.

Continuously Reinforcing the Importance of Collaboration

Collaboration is key in any joint business plan, as it allows for the pooling of resources, expertise, and networks. To maintain effective collaboration throughout the partnership, it is important to continuously reinforce its importance.

This can be done through regular check-ins, open communication channels, and providing support where needed. By fostering an environment that encourages collaboration, you can build trust and strengthen the relationship with your partner.

Maintaining a common vision and strategic objectives in a joint business plan requires strong leadership and effective strategy execution. It involves aligning long-term goals with your partner’s vision, ensuring shared understanding of strategic priorities, and continuously reinforcing the importance of collaboration.

You raise the chance of reaching win-win results if you keep this alignment throughout the collaboration. Recall that effective collaborative company planning needs constant communication and a dedication to collaborating to achieve shared objectives.

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Resources to help you get started with joint business planning

Creating a joint business plan can seem like a daunting task, but fear not! There are plenty of resources available to assist you in this process.

Let’s explore some of these resources that can help you get started with joint business planning.

Online Templates for Creating Joint Business Plans

One helpful resource is the availability of online templates specifically designed for creating joint business plans. These templates provide a structured framework that allows you to outline your goals, strategies, and actions in a clear and organized manner.

With pre-defined sections and prompts, these templates make it easier for you to navigate through the planning process.

• Saves time and effort by providing a ready-made structure.
• Ensures consistency and completeness in your joint business plan.
• Provides guidance on what information to include in each section.
• May lack customization options for unique business needs.
• Requires careful adaptation to fit your specific partnership dynamics.

Industry-Specific Case Studies Showcasing Successful Collaborations

Another valuable resource is industry-specific case studies that showcase successful collaborations between businesses. These case studies offer real-life examples of how joint business planning has been implemented effectively across various industries.

By examining these success stories, you can gain insights into best practices, challenges faced, and strategies employed by others in similar partnerships.

• Offers practical examples that demonstrate the benefits of joint business planning.
• Provides inspiration and ideas for implementing collaborative strategies.
• Helps identify potential pitfalls and ways to overcome them.
• May not directly align with your unique partnership situation.
• Limited availability of industry-specific case studies may restrict options for certain sectors.

Expert Guides on Effective Partnership Management

To further support your joint business planning efforts, expert guides on effective partnership management are available as well. These guides provide comprehensive advice on building strong partnerships, fostering collaboration, managing conflicts, and maximizing mutual benefits.

They offer valuable insights from experienced professionals who have navigated the complexities of joint business planning.

• Offers expert advice and proven strategies for successful partnership management.
• Provides step-by-step guidance on various aspects of joint business planning.
• Helps you avoid common pitfalls and challenges associated with partnerships.
• Requires careful adaptation to your specific partnership dynamics.
• May not address industry-specific nuances or challenges.

Recommended Reading: How to Start a Photography Business with No Experience (A Step-by-Step Guide)

Frequently Asked Questions (FAQs)

Can any type of business benefit from joint business planning.

Absolutely! Joint business planning is applicable across industries and sectors. Whether you’re a small startup or an established corporation, collaborating with another company through joint business planning can bring numerous benefits such as increased market share, cost savings through shared resources, access to new customer segments, enhanced product offerings, and improved overall competitiveness.

How do I find the right partner for joint business planning?

Finding the right partner for joint business planning starts with identifying companies that complement your strengths and fill gaps in your capabilities. Look for organizations with similar values and strategic objectives but different areas of expertise that can add value to your offerings.

Networking events, industry conferences, trade associations, online platforms are great places to connect with potential partners. Take the time to build relationships, assess compatibility, and ensure alignment before diving into joint business planning.

What are some common challenges in joint business planning?

While joint business planning offers numerous benefits, it can also come with its fair share of challenges. Common obstacles include differences in organizational culture and decision-making processes, conflicting priorities and objectives, resource allocation issues, and communication breakdowns.

The key to overcoming these challenges is open and transparent communication, mutual respect, and a willingness to compromise when necessary.

How do you evaluate the progress of a joint business plan?

Evaluating the progress of a joint business plan requires establishing clear metrics and milestones at the outset. Regularly review these indicators to gauge performance against targets.

Maintain open lines of communication with your partner to address any concerns or roadblocks that may arise along the way. By regularly assessing progress and making necessary adjustments, you can ensure that your joint business plan remains on track towards achieving its objectives.

Are there any resources available to help me get started with joint business planning?

Yes! There are several resources available to assist you in getting started with joint business planning. Industry publications, online forums, webinars, and workshops often provide valuable insights and best practices for successful collaboration.

Consulting firms specializing in strategic partnerships can offer guidance tailored to your specific needs. Don’t hesitate to tap into these resources as you embark on your joint business planning journey.

In today’s competitive business landscape, collaboration is key to success. That’s where joint business planning comes in. By partnering with another company and aligning your goals and strategies, you can unlock a whole new level of growth and profitability. Joint business planning allows you to pool resources, share expertise, and leverage each other’s networks to achieve mutually beneficial outcomes.

But it’s not just about the immediate gains. Joint business planning sets the foundation for long-term partnerships built on trust and shared vision. It enables you to navigate challenges together, adapt to market changes swiftly, and seize opportunities that may have been out of reach individually. By working hand in hand with a like-minded partner, you can amplify your impact and create a powerful synergy that propels both businesses forward.

Ready to tap into the power of joint business planning? Start by evaluating potential partners who align with your values and objectives. Establish open lines of communication, set clear expectations, and define measurable goals together. Remember, successful joint business planning requires ongoing collaboration and commitment from both parties. With the right partner by your side, there’s no limit to what you can achieve together.

Next-Generation Joint Business Planning

A group of industry insiders debate the current state of jbp but reach consensus on where it should be heading for the benefit of manufacturers, retailers and, ultimately, shoppers..

The best way to have a productive and meaningful discussion about joint business planning between consumer goods companies and retailers is to establish early on that everyone is talking about the same thing. That’s because joint business planning, or JBP, means different things to different people. “The term is really loose,” says Patrick Fitzmaurice, CEO and “head farmer” of Caterpillar Farm, an organizational change-activation consulting firm based in Atlanta. “It would be interesting to put a stake in the definition of what we mean when we talk about JBP.”

Trying to nail down one specific definition based on interviews for this article was a flummoxing and ultimately futile exercise, but though there was no consensus on what JBP means and entails currently, there was a convergence of views on what it means and entails ideally. What came into focus is a vision of next-generation joint business planning, shaped by current and projected disruptions in retail. Modeling the JBP process of the future is beyond the scope of this article, but from those interviews, Path to Purchase IQ has distilled some of the essential elements.

The Prerequisites

By definition, JBP is collaborative, but in practice, manufacturers and retailers often aren’t truly collaborating. Instead, they’ve just slapped a new label on business as usual. Traditionally, a manufacturer’s sales rep met annually with the retailer’s buyer to discuss operating plans, including basic logistics and pricing, and the relationship that grew out of that was transactional, tactical and, inevitably, adversarial.

This relationship based on jockeying isn’t conducive to JBP, which requires true collaboration for win-win results. Going forward, for JBP to work, the plan must be co-created, the timeline longer and the approach cross-functional.

Trust is a sine qua non of JBP because of the transparency and exchange of information required of both parties. Each partner needs to understand the other’s business, its target shopper and its strategic goals. This understanding forms the basis of a mutually beneficial plan, and the open exchange of information – within the context of a confidentiality agreement – allows for its co-creation.

Trust isn’t the only foundational element that must be built. “I call it getting your house in order – developing supports internally before even having JBP discussions,” says Mike Holcomb, managing director of The Partnering Group (TPG), a Cincinnati-based consulting firm that works with manufacturers and retailers on collaborative planning. Without pillars in place, from the right technology to properly trained people, even the most smartly conceived plan will fail to reach its potential.

Because next-gen JBP requires resource reallocation and role changes internally, change management and cultural shift must take place. Toppling siloes, breaking habits and rethinking job descriptions are part of this process because JBP requires cross-functional connectivity, among other new paradigms in supplier-retailer relations. “Businesses run on systems that are slow to change – process systems, technology systems, people systems,” Fitzmaurice says. “A lot of legacy systems are holding manufacturers and retailers back from creating higher-order strategic initiatives.”

The Players

Traditional planning at the category manager and retail buyer level does not rise to the level of JBP. “Higher-level strategic planning, when done well, has a broad set of players who contribute in some way to the overall plan and its execution,” says Anne Chambers, CEO of Capre Group, an Atlanta-based sales and marketing consultancy that helps clients with JBP 2.0, which it calls “collaborative partnership planning.”

Disciplines involved in that planning process include shopper insights, shopper marketing, loyalty, category management, merchandising, sales, revenue growth management, supply chain, e-commerce and others. Team members are connected and aligned throughout each other’s organizations. “Defined roles and aligned performance metrics keep all parties focused on mutual goals,” Chambers says.

Omnichannel retailing, e-commerce, voice shopping and other developments bring more players to the team and “have an impact on the overall JBP process,” says Steve McGowan, regional vice president of shopper and consumer activation at Mondelez International. “Some additional people are included from both sides, and the strategic planning and alignment takes a broader look at the shopper journey to ensure that all touchpoints are being met.”

Bringing in this many players, and giving them new demands and priorities, makes leadership endorsement critical. “Leadership plays such a key role with change management and creating momentum in the organization,” Chambers says. “People need to understand this is a permanent shift; it’s the way we go to market now.”

Senior-level involvement is imperative on both sides to ensure follow-through and accountability. Though not bogged down in every detail, leaders oversee the entire process, from approving plans and allocating the necessary cross-functional resources to evaluating the results.

Arguably, the most important player is one who is never physically present: the shopper. A shopper-centric approach inspired by the needs of the partners’ mutual customers becomes the game plan for “the trifecta – the win-win-win for the shopper, retailer and manufacturer,” says Christopher Brace, founder and CEO of the New York-based marketing strategy firm Syntegrate Consulting.

Next-gen JBP requires significant time and resources. As a result, “Some retailers are backing away from the formal JBP work while still having really strong business plans with their strongest suppliers,” Holcomb says. Those that do engage in JBP do so strategically and selectively. “The manufacturers doing true JBP are working with two or three retailers in the country, and retailers are maybe doing it with four to six suppliers.”

The Process

Three essential elements of JBP are transparency, collaboration and agreed-upon performance indicators. “KPIs [key performance indicators] ensure that both sides are working against a consistent set of metrics that will help drive each respective business,” McGowan says.

Currently, collaboration tends to be lopsided, “but JBP at its best entails that the retailer and the brand co-create programs that meet the needs of the brand, the retailer and the shopper equally,” says Brace, adding that retailers prefer partners who demonstrate they understand category growth drivers and have a category-first mindset. “A common mistake is going to the retailer and talking all about the brand instead of starting out by saying, ‘Here’s what we know about you and your growth strategy, your strategic priorities and your strategic challenges, and here’s how we can help you meet those challenges.’ Another mistake is showing up with a program idea that’s too fully baked to allow for retailer input.”

Manufacturers with a good handle on consumer, shopper and category insights for their brands need to go the extra mile “to customize for the individual retailer’s shopper,” says Karen Sales, founder of Boise, Idaho-based sales and marketing firm KSMarketing and formerly vice president of shopper marketing at Albertsons.

Category comes before brand, insights inform the conversation, and each side helps solve the other’s long-term business challenges by pooling resources. According to Fitzmaurice, if there’s one question that drives the planning process, it’s this: “Where is there growth we could be capturing together?” Partners reach an agreement on activities that will drive growth for both of them, as well as financial and nonfinancial targets, relevant KPIs, responsibilities and timing.

The traditional 12-month planning cycle is too short for JBP. A time horizon of two or three years makes more sense “in the current landscape where so much can change in so many areas – commodities, shipping, e-commerce, media and measurement tools, supply chain, overall footprint,” says Sales. “Set a joint target and have a rolling plan you are working against with quarterly check-ins and annual reviews.”

Technology will facilitate collaboration and program management. Shared access to a dashboard, with a common scorecard, will allow for ongoing joint reviews of the plan’s execution. Both parties can track agreed-upon performance measures. When those metrics are below par, the team can take corrective actions.

The written plan is both the product of the process and the continuation of the process. In other words, the plan is a process. Based on mutual objectives and opportunities, it commits to writing the agreed-upon initiatives and activations; how and by whom they will be implemented; project milestones; expected benefits including return on investment; and performance metrics and results.

So parties can anticipate and react swiftly to changing market conditions, a joint business plan should take market trends and forecasts into account. Once the plan is deployed, partners continuously evolve it based on real-time results and market shifts. The retail industry is rocked by near-constant disruptors, and part of the plan’s purpose “is to adapt to those challenges and lay out how to positively leverage or counteract them,” Holcomb says.

Milestones include periodic check-ins when partners revisit the plan. “In most cases there’s usually an annual broader strategic alignment session followed by periodic check-ins on a quarterly or monthly basis to ensure we are all tracking and working against the collectively agreed-upon objectives,” McGowan says.

The performance metrics typically take the form of a joint scorecard with two sets of metrics. “One is the traditional category-health metrics of volume, sales and profit,” Chambers says. “The second set of metrics measures the progress on category strategies. These are specific to the strategy and may include metrics like trips, basket or shopper penetration.”

The financial benefits of next-generation JBP are evident on the scorecard, but beyond that are organizational benefits and – most importantly – benefits for the shopper. Many retailers and manufacturers have work to do before laying claim to those benefits or conferring them on the shopper. As Fitzmaurice sees it, the parties’ main problem is they’re not talking the talk, let alone walking the walk, when it comes to business planning. “Their discussions still focus on product and price issues instead of providing a better commerce experience,” he says.

Right now, few have mastered true JBP, says Brace, but that just means there’s a vast frontier with plenty of opportunity. “If you’re the first in your category to do it, you’ll gain a competitive edge,” he says. But hurry, “because that’s where the industry is headed.”

JBP 2.0 Cheat Sheet

Ante Up: What Both Sides Should Bring to the Table

• Cross-functional resources

• Applicable technology

• Shopper data

• Consumer and shopper insights

• Current and future category growth drivers

• Trends (industry-, technology- and shopper-based)

• Relevant intellectual property

JBP Best Practices for Manufacturers

• Show you understand the needs of the retailer.

• Give retailers an opportunity to influence programs. Don’t show up with “fully baked” programs.

• Share insights as to why shoppers do what they do inside the store, which stems from their life as consumers outside the store.

• Identify what is emotionally meaningful to the shopper relative to your brand, your category and the retailer.

• Translate those insights into stories that can be told in the retail space and other touchpoints along the shopper journey.

Source: Christopher Brace, Syntegrate Consulting

What JBP is NOT

• Handled at the buyer/category manager level

• Tactical trade negotiations

• Category management

• Promotional planning

• Short-term planning

• Brand focused

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Growing the Joint Profit Pool of Retailers and Manufacturers in Europe

A well-devised joint business plan can deliver more than 10% of incremental profit pool growth for both brand and retailer in a single year.

By Eduardo Giménez, Laure Maddens, Martin Hernandez, Annaliese Jagusch, and Anne Haine

• January 11, 2021

At a Glance

• In Europe, only one in four joint annual plans manage to create value for both consumer goods companies and their retail customers.
• Retailers have a relatively low perception of their European consumer goods suppliers, and that has been declining over the past five years.
• Many of the levers that consumer goods companies use to grow the joint profit pool are close to the saturation point. For example, 59% of all promotions deliver no incremental value, but just subsidize baseline sales.
• Yet, the best performing consumer goods companies deliver more than 10% of incremental profit pool growth in a given year for all parties by doing five things differently.

In Europe, modern trade retailers account for 40% to 80% of annual sales and gross profit for most consumer packaged goods companies (CPGs), with much of that concentrated in four to five main customers in each country. A good year with one of these key customers typically translates into a good year for the consumer goods company. Unfortunately, many are having more bad years than good with their retail customers. Despite a substantial increase in trade investment, annual negotiations are getting tougher and more complex to manage. It has become more common for many consumer goods companies to end up in conflict with one of their critical retail customers in any given year.

Two main root causes are elevating the negotiation temperature—and tempers.

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First, rapid shifts in the retail landscape have severely affected the traditional retailer business model (see the Bain Brief “ How to Thrive in Europe’s Vexing Grocery Business ”). The explosive growth in online sales, recently accelerated because of Covid lockdowns, is moving volume from profitable stores into less profitable e-commerce sales. Excess capacity in sales surface, which in some European countries continues to grow, is reducing average store traffic. The shopper exodus from hypermarkets to smaller, more convenient urban formats is hurting retailers with larger store networks. Yes, there have been some retail winners, but many traditional banners are suffering. Even if grocery retailers are enjoying a sales boost from the Covid-related at-home occasions, their profitability is likely to erode in the next five years, according to Bain research.

Second, many of the conventional levers used by consumer goods companies to create value in their categories are showing worrying signs of fatigue. A few years ago, a company only needed to come up with a good innovation, an exciting promotion campaign or the right change in mix to create incremental value for itself and its customers. It’s no longer that simple. According to Nielsen research, 59% of all promotions fail to deliver incremental value—they only subsidize baseline sales (see Figure 1). As a result, around €27 billion ($32.5 billion) are wasted in “bad promotions” each year across Europe’s top 12 markets. Equally alarming, 50% to 70% of the entire available assortment present in the market delivers only 2% of total category sales. Yet, an average of 120 new items are launched every day in the top five European markets. Of those items, only 30% manage to get sufficient distribution and rotation to eventually survive. With the average store getting smaller, it will become increasingly hard for many SKUs to justify getting space in the store.

Nearly 60% of all promotions fail to deliver incremental value

The situation is taking a toll on retailers’ perception of their consumer goods company suppliers. The net favorable opinion of retailers toward consumer goods companies in Western Europe declined by one point in the past four years, from an already noticeably low base (23 points on a scale of –100 to 100), according to Advantage. That’s 26% lower than the average retailer perception of consumer goods companies globally , which rose by four points over the same time period.

Most consumer goods companies make being more “customer centric” one of their critical commercial objectives. They also acknowledge that they cannot be in a permanent negotiations fight with all of their customers, even if at times they feel the need to take a more assertive stand. Most would also agree that the only sustainable solution is to win with their customers; growing the joint profit pool with their retail partners—not just their own profits. Unfortunately, creating value for both parties requires more than just awareness and willingness. According to Bain research, only 27% of joint annual plans in the past five years actually grew profits for both consumer goods companies and their retailers (see Figure 2). In fact, nearly 25% of joint annual plans actually resulted in lower margins for both. In the rest of the situations, margin gains merely moved from one to the other, more often to the benefit of the retailer.

Only 27% of joint annual plans actually grew the profit for both consumer goods companies and retailers in the past five years

So, how do one in four consumer goods companies in Europe succeed in growing the joint profit pool for all parties? Here are the five things they do differently.

Understand their retailer customer economics and strategy, as well as their own. For us, this is the ultimate measure of true customer centricity. Few companies actually go through the effort of trying to build and understand their customer’s profit and loss (P&L) statement. Consequently, many initiatives in customer plans often create value for the consumer goods company, but fail to deliver net value for their customers, too. Even when they do help retailers, the consumer goods companies are unable to articulate how the initiative creates value, making it difficult for retailers to buy in. Knowing a customer’s P&L in detail (or at least understanding the basics of its main components) helps identify the big pockets of value creation potential. It also triggers new creative ideas on how to improve them.

It is also good practice to listen to the other side’s needs. As intuitive as it may sound, consumer goods players often fall into the trap of assessing performance against their own key performance indicators (KPIs) and fail to sufficiently understand their customer’s KPIs. That might explain why overall net favorable scores of consumer goods companies are typically so low (see Figure 3). The recent mobilization in response to Covid-19 is a good example of how to improve the dialogue. Surveyed retailers by Advantage acknowledge recent consumer goods company efforts to help address Covid-19 challenges, significantly improving their average scores in areas such as “integrated e-commerce” or “social responsibility.” In this respect, the Covid response might offer a glimpse as to what great partnerships could achieve.

Net favorable scores of consumer goods companies are typically low

Expand the value creation horizon to 360-degree levers. As we mentioned, promotions, innovations and some of the other traditional levers that consumer goods companies use to create value are becoming less effective. Yet, some outliers manage to grow the joint profit pool by optimizing these levers. For example, based on Nielsen’s case studies, a well-managed assortment optimization program can deliver up to 20% in incremental sales and profits for both supplier and retail customer by reducing item cannibalization. Similarly, a robust trade promotion analytics program can improve trade efficiency from the same promotion spending by 1%, contributing to 5%–7% operating profit improvement. Bringing it all together, a well-devised joint business plan can boost the joint profit pool by more than 10% in a single year. To achieve that, the best value creators look beyond the traditional levers and engage with their retail partners for a 360-degree view of the joint economics. They proactively look for ways to improve their end-to-end supply chain; coinvest in store operations; and look for ways to increasingly digitalize their interactions. Indeed, the opportunities to engage with partner retailers in joint value creation are substantial: In 2020, top-performing companies across Europe earned an average Advantage score of 55 compared with the overall average company score of 28. The best consumer goods player in Europe earned a score of 71. For many consumer goods companies, there’s significant headroom for more constructive, comprehensive and sustainable customer relations.

Take a medium-term view to get structural results. Growing the joint profit pool is not a quick fix. It typically takes a couple of years to create and execute a comprehensive 360-degree plan. Unfortunately, many consumer goods companies have a short-term, tactical view of their annual customer negotiations. Pressed by ever-increased trade investment levels, they burden sales teams with overly aggressive objectives that often inhibit long-term, shared gains. Even when companies start with the right intentions, they may fall into the trap of focusing on monthly sales targets. Companies won’t boost joint profit pools by merely adding minor incremental changes to last year’s plans. Instead, consumer goods companies need to engage with their customers on a three-year vision of their joint business. They need to align on some strategic questions and agree on a clear point of arrival. That means asking a series of questions. What is the future role of our categories in your stores? How are we going to help you be competitive and attractive to shoppers? What is the size of the opportunity for both of us? When companies jointly create a clear vision, the next year’s customer plan becomes the first year on that journey toward expanding the profit pool for all.

Raise the number and quality of customer touchpoints. The best plans are typically codeveloped in detail with customers. More common in the US, the approach is more complex in some markets in Europe. Regardless, it should be the top priority for any commercial team. Many sales executives take great pride in the quality of their customer relationships. They often know the person on the customer side well, and even if the relationship might get rough at times, they can depend on their personal bond to rebuild bridges. The best companies take this much further. First, they understand the customer organization inside out. They know who their buyer is, what else he or she is responsible for, how important their business is for them compared with others and how the buyer is evaluated and incentivized. They have a clear understanding of all the key people in the other areas of the customer organization, and set up direct and regular contact points across different functions (supply chain to supply chain, shopper marketing to shopper marketing, et cetera). They create new opportunities to expand the conversation, through new areas such as online marketing and digital shopper activation. They elevate discussions by organizing regular top-to-top meetings. This approach, adopted by leading organizations, helps evolve the relationship. Advantage analysis determined that the softer, more emotive components are the most critical differentiating factors for Europe’s highest-performing supplier/retailer relationships. Best-in-class companies invest in developing a foundation of trust and transparency that underpins the commercial relationship. These behaviors include effectively managing communication across all hierarchical and functional touchpoints, proactively engaging across the full spectrum of topics from corporate strategy to grassroots tactics, as well as establishing a common system and approach for the measurement and tracking of joint business performance.

Break the internal silos to get to the best plan. Many of these opportunities require a broad set of capabilities and cross-functional teaming to connect the dots. Many consumer goods companies have large internal teams for their top customers, with dedicated functional expertise. In our view, the backbone of that team should be built around category, revenue growth management, key account management and in-store execution expertise. However, we often see these teams reproducing the organizational silos they were meant to break, with each member working toward their specific functional KPIs. In our experience, the best way to break internal silos is by making people work together with a common goal—making sure that all team members have skin in the game, and are not just representing their particular function or contributing only high-level ideas. They should own the customer P&L, and be collectively responsible for producing plans that grow the joint profit pool for both. The most successful consumer goods players also support collective accountability with new ways of working. They use Scrum or any other Agile approach to cocreate the best ideas while keeping focus on the activities that might truly move the needle. Agile also allows them to be flexible and responsive to customer input, simulating alternative scenarios and adapting the plan as they collect additional customer input. Finally, best-in-class companies have these teams present the most important customer plans to the senior leadership team as would be done for different country plans or business unit plans. Ultimately, if the company’s strategic priorities are not well reflected in its top customer plans, they will not materialize.

Considering the pressures on their retail customers’ profitability, the only sustainable solution for consumer goods companies to grow themselves is to develop the joint profit pool. This is not easy, and we see only about 25% of the joint annual plans succeed. It requires creating a truly customer-focused organization and win-win partnerships with their retail customers. The most successful companies understand the economics of the trade, expand the scope of their collaboration, take a longer-term perspective and work in an agile way, both internally and with the customers.

About Nielsen Holdings

Nielsen Holdings is a global measurement and data analytics company. Nielsen Global Media provides media and advertising industries with unbiased metrics that create a shared understanding of the industry. Nielsen Global Connect provides CPG companies with accurate, actionable insights that companies need to grow. An S&P 500 company, Nielsen operates in over 90 countries. For more information, visit www.nielsen.com.

About Advantage Group International

Advantage has been the leading adviser in business-to-business engagement globally since 1988. We help supplier and retail businesses be better together by designing and delivering engagement solutions that measure and strengthen performance. For more information, visit www.advantagegroup.com.

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Joint Business Plan: what's the point? .

It’s around this time that manufacturers and retailers agree joint business plans, or JBPs, for the coming year. But JBPs can be a very mixed bag, so if you’re going to do one, it’s essential you do it in the right way and for the right reasons. JBPs come in just three flavours, so which one is right for each of your major relationships?

The Sales Plan:

It’s the most common form of JBP but, in reality, it’s nothing more than a 12-month promotion calendar. Periods of trading, interspersed with launches and deals. It’s a low-value exercise. At best it helps you coordinate activity, stock, and investment across the year, but it’s never going to transform your businesses, so don’t waste much time on it.

The Battle Plan:

This flavour of JBP is really a competitive negotiating tool, to be used to gain specific commitments and concessions. A retailer may be offered extra promotions for a cost price increase. A manufacturer might be promised volume growth in return for more investment. The numbers in the plan are only there to support the negotiation, and to be used as a beating stick, for one side or the other, during the year. It’s a hard-nosed deal for a 12-month period, so it needs time, focus and planning.

The Strategic Plan:

The “strategic” JBP is very different. It requires an open, collaborative relationship. It starts with an ambitious vision of where the relationship could be in the future, where it could add genuine value for customers, and where it could create something new, different and worthwhile. The strategy is as much about joint initiatives as it is about buying and selling, and it may outline a plan that will run for the next several years.

BOTTOM LINE:  you can’t collaborate with someone intent on competing with you. But for those relationships where you can collaborate, the rewards from a strategic JBP can be huge. Choose the right approach, set appropriate objectives, and adopt a style to maximise the opportunity. Don’t waste your time going through the motions – there’s really no point.

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Joint Business Plan

Unlock the potential of Joint Business Plan with our comprehensive guide. Explore essential terms and concepts to excel in the e-commerce realm with Lark's tailored solutions.

Leverage the full capabilities of Lark Base to streamline, oversee, and successfully execute your e-commerce strategies and initiatives.

Boosting e-commerce success with joint business plan

In the rapidly evolving landscape of e-commerce, online retailers are constantly seeking strategies to gain a competitive edge and drive growth. One such strategy that has gained significant traction is the Joint Business Plan. By collaborating with partners, retailers can align their goals and create a mutually beneficial plan to drive sales, enhance customer experience, and optimize operations. In this comprehensive guide, we will explore the key impacts of Joint Business Plan on e-commerce in 2024, critical considerations for its implementation, potential benefits and challenges, and much more.

Understanding joint business plan in 2024's e-commerce landscape

Evolution and definition in the online retail context.

Joint Business Plan has evolved from being a mere collaboration between retailers and suppliers to a comprehensive strategic framework that encompasses various aspects of e-commerce. It involves setting shared objectives, aligning resources, and leveraging data-driven insights to drive growth. In 2024, Joint Business Plan has become a vital tool for online retailers to navigate the competitive e-commerce landscape.

Significance and Emerging Trends for Digital Commerce

With the rise of e-commerce, the significance of Joint Business Plan has grown exponentially. It enables retailers to establish strong partnerships, optimize supply chain management, and deliver exceptional customer experiences. In 2024, we can expect to see several emerging trends related to Joint Business Plan, including the integration of advanced technologies like artificial intelligence and machine learning, the adoption of data-driven decision-making processes, and the focus on sustainability and ethical practices.

Dispelling Common E-commerce Misconceptions

There are several misconceptions surrounding Joint Business Plan in e-commerce. Some believe it is only relevant for large retailers, while others think it is restricted to specific industries. However, in reality, Joint Business Plan can be beneficial for businesses of all sizes and across various sectors. It offers opportunities for growth, improved profitability, and enhanced customer satisfaction.

How Joint Business Plan Fits into the Broader E-commerce Ecosystem

Joint Business Plan is not an isolated strategy but rather an integral part of the broader e-commerce ecosystem. It complements other initiatives such as digital marketing, customer relationship management, and supply chain optimization. By aligning Joint Business Plan with these elements, retailers can create a seamless and cohesive customer journey, driving long-term success.

Roi and performance metrics in joint business plan

2024 projections for e-commerce roi and kpis.

In 2024, the implementation of Joint Business Plan is expected to yield significant returns on investment (ROI) for online retailers. By leveraging the power of partnerships and effective planning, retailers can achieve higher conversion rates, increased average order values, and improved customer retention. Key performance indicators (KPIs) to track the success of Joint Business Plan include revenue growth, customer acquisition cost, customer lifetime value, and conversion rates.

Industry Benchmarks and Performance Standards

To gauge the effectiveness of Joint Business Plan, it is essential to establish industry benchmarks and performance standards. By comparing performance metrics against these benchmarks, retailers can identify areas for improvement and optimize their strategies. Industry associations, market research reports, and case studies provide valuable insights into the expected performance standards for Joint Business Plan in e-commerce.

Case Studies: Online Sales Boosts Achieved Through Effective Joint Business Plan Implementation

To illustrate the real-world impact of Joint Business Plan, let's explore some case studies of online retailers that have achieved substantial sales boosts through its implementation. One such example is a fashion retailer that partnered with a leading influencer to create exclusive collections and promote them on social media platforms. This collaboration resulted in a significant increase in online sales and brand visibility. Another example is an electronics retailer that collaborated with a popular tech blog to create informative content and offer exclusive discounts. This partnership led to a surge in website traffic and a boost in sales.

Measuring the Impact of Joint Business Plan on Customer Lifetime Value and Retention

One of the key benefits of Joint Business Plan is its potential to impact customer lifetime value (CLV) and retention. By optimizing the customer journey, providing personalized experiences, and offering value-added services, retailers can increase CLV and foster long-term loyalty. Measuring the impact of Joint Business Plan on CLV can be done through customer surveys, analyzing repeat purchase rates, and tracking customer satisfaction metrics.

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Implementing joint business plan in your online store

2024 best practices for e-commerce platforms.

Implementing Joint Business Plan requires a strategic approach and careful planning. In 2024, online retailers can follow these best practices to ensure successful implementation:

• Identify the right partners: Choose partners that align with your brand values, target audience, and business goals.
• Set clear objectives: Define specific, measurable, attainable, relevant, and time-bound (SMART) objectives for your Joint Business Plan.
• Collaborative planning: Work closely with your partners to develop a comprehensive plan that outlines shared responsibilities, timelines, and deliverables.
• Leverage data and analytics: Utilize data-driven insights to identify growth opportunities, optimize pricing strategies, and improve operational efficiencies.
• Continuous evaluation and optimization: Regularly assess the performance of your Joint Business Plan and make necessary adjustments to maximize its impact.

Step-by-Step Guide to Integrating Joint Business Plan into Existing Operations

Integrating Joint Business Plan into your existing operations requires careful planning and execution. Here is a step-by-step guide to help you navigate the process:

• Identify potential partners: Research and identify potential partners that align with your business objectives and target audience.
• Establish shared goals: Collaborate with your partners to define shared goals and objectives for your Joint Business Plan.
• Conduct a SWOT analysis: Analyze the strengths, weaknesses, opportunities, and threats associated with the partnership.
• Develop a comprehensive plan: Create a detailed plan that outlines the key activities, timelines, and responsibilities of each partner.
• Allocate resources and budget: Determine the resources and budget required to execute the Joint Business Plan effectively.
• Implement and monitor: Execute the plan and closely monitor its progress, making necessary adjustments along the way.
• Evaluate and optimize: Regularly evaluate the performance of your Joint Business Plan and identify areas for improvement.
• Nurture the partnership: Foster a strong relationship with your partners through effective communication and collaboration.

Tools and Technologies Streamlining Joint Business Plan for Digital Retail

In the digital age, numerous tools and technologies can streamline the implementation of Joint Business Plan. These include:

• Collaboration platforms: Tools like Slack, Microsoft Teams, and Google Workspace facilitate seamless communication and collaboration between partners.
• Data analytics software: Platforms such as Google Analytics, Adobe Analytics, and Salesforce Marketing Cloud enable retailers to gather valuable insights and make data-driven decisions.
• Customer relationship management (CRM) systems: CRM systems help retailers manage customer data, track interactions, and personalize experiences.
• Supply chain management software: These tools optimize inventory management, order fulfillment, and logistics to ensure efficient operations.
• Artificial intelligence (AI) and machine learning (ML): AI and ML technologies can analyze vast amounts of data, identify patterns, and provide actionable recommendations for optimizing Joint Business Plan strategies.

Overcoming Unique Online Retail Challenges in Joint Business Plan Adoption

While Joint Business Plan offers numerous benefits, online retailers may encounter unique challenges during its adoption. Some common challenges include:

• Establishing trust and alignment with partners: Building trust and ensuring alignment between partners can be a complex process. Clear communication, transparency, and a shared vision are crucial for successful collaboration.
• Integrating systems and processes: Integrating different systems and processes between partners can be challenging. Compatibility issues, data integration, and workflow alignment need to be carefully addressed.
• Managing competing priorities: Each partner may have their own priorities and objectives. Balancing these priorities while aligning on shared goals requires effective negotiation and compromise.
• Measuring and attributing success: Determining the impact of Joint Business Plan on overall success can be challenging. Retailers need to establish clear metrics and attribution models to accurately measure and evaluate the effectiveness of their Joint Business Plan initiatives.

Resource Allocation and Budget Considerations

Implementing Joint Business Plan requires allocating resources and budget effectively. Consider the following factors:

• Staffing: Determine the number of team members and their roles required to execute the Joint Business Plan.
• Technology investments: Assess the need for new tools and technologies and allocate budget accordingly.
• Marketing and promotional activities: Allocate budget for marketing campaigns, promotions, and other customer acquisition and retention initiatives.
• Partnership investments: Consider the financial commitments associated with partnerships, such as co-marketing activities or joint product development.

Industry insights and e-commerce benchmarks

2024 expert panel insights on joint business plan in digital retail.

To gain valuable insights into Joint Business Plan in digital retail, we reached out to a panel of industry experts. Here are some key takeaways from their insights:

• Collaboration is key: Successful Joint Business Plan implementation requires open communication, trust, and a shared vision between partners.
• Data-driven decision-making: Leveraging data and analytics is essential for identifying opportunities, optimizing strategies, and measuring success.
• Focus on customer experience: Joint Business Plan should prioritize enhancing the customer journey and delivering personalized experiences.
• Continuous evaluation and optimization: Regularly assessing the performance of Joint Business Plan and making necessary adjustments is crucial for long-term success.

Success Stories from Leading Online Stores Across Various Sectors

Several leading online stores across various sectors have successfully implemented Joint Business Plan. One notable example is a beauty retailer that collaborated with skincare influencers to create exclusive product bundles. This partnership not only increased online sales but also boosted brand awareness and credibility within the beauty community. Another success story involves a home decor retailer that partnered with interior design influencers to curate limited-edition collections. This collaboration resulted in a surge in website traffic, higher conversion rates, and increased customer loyalty.

Comparative Analysis of Joint Business Plan Implementation in Different E-commerce Niches

While Joint Business Plan can be beneficial across different e-commerce niches, its implementation varies based on specific industry dynamics. For example, in the fashion industry, collaborations with fashion bloggers and influencers play a significant role in driving sales and brand visibility. In the electronics industry, partnering with tech experts and review websites can help build credibility and trust among tech-savvy consumers. Understanding the unique characteristics of each niche is crucial for tailoring Joint Business Plan strategies to maximize success.

Lessons Learned and Pitfalls to Avoid

Implementing Joint Business Plan comes with its own set of challenges and potential pitfalls. Here are some lessons learned and pitfalls to avoid:

• Lack of clear objectives: Failing to define clear objectives can lead to misalignment and ineffective execution of Joint Business Plan.
• Insufficient communication: Open and regular communication between partners is essential for successful collaboration.
• Overlooking data analysis: Neglecting data analysis can hinder the ability to make informed decisions and optimize Joint Business Plan strategies.
• Lack of flexibility and adaptability: The e-commerce landscape is constantly evolving, and retailers need to be adaptable and willing to adjust their Joint Business Plan strategies accordingly.

Omnichannel integration strategies

Seamlessly connecting online and offline joint business plan processes.

Omnichannel integration is crucial for a seamless Joint Business Plan experience across online and offline channels. By integrating inventory management, pricing strategies, and customer data, retailers can provide a consistent and personalized experience to customers regardless of their preferred shopping channel. This integration allows for a unified view of customer interactions, improved inventory visibility, and increased operational efficiency.

Creating Unified Commerce Experiences across Multiple Touchpoints

Unified commerce experiences involve providing customers with a consistent and frictionless experience across multiple touchpoints. By leveraging Joint Business Plan, retailers can ensure a seamless transition between online and offline channels, enabling customers to research, purchase, and return products through their preferred channels. This integration enhances customer convenience, satisfaction, and loyalty.

Leveraging Joint Business Plan to Enhance Customer Experience in Omnichannel Retail

Joint Business Plan plays a crucial role in enhancing the customer experience in omnichannel retail. By collaborating with partners to optimize inventory availability, streamline fulfillment processes, and provide personalized recommendations, retailers can deliver a superior customer experience. Joint Business Plan initiatives such as joint promotions, exclusive offers, and targeted marketing campaigns further enhance the customer journey.

Case Studies of Successful Omnichannel Integration Involving Joint Business Plan

To illustrate the success of omnichannel integration involving Joint Business Plan, let's explore some case studies:

• A sportswear retailer partnered with fitness influencers to create exclusive workout routines and offer personalized coaching sessions. Customers could access these resources online and in-store, creating a seamless omnichannel experience.
• A grocery retailer collaborated with a popular recipe website to provide customers with personalized meal plans and shopping lists. Customers could access these resources through the retailer's website, mobile app, and in-store digital kiosks.

Customer experience and personalization

Utilizing joint business plan to enhance customer satisfaction and loyalty.

Joint Business Plan offers significant opportunities for enhancing customer satisfaction and fostering loyalty. By collaborating with partners to personalize product recommendations, provide tailored promotions, and offer exceptional customer service, retailers can create memorable experiences that drive customer satisfaction and loyalty.

Personalization Strategies Powered by Joint Business Plan

Personalization is a key component of Joint Business Plan. By leveraging customer data, retailers can create personalized experiences tailored to individual preferences, purchase history, and browsing behavior. Personalization strategies powered by Joint Business Plan include personalized product recommendations, targeted marketing campaigns, and customized loyalty programs.

Balancing Automation and Human Touch in Customer Interactions

While automation plays a crucial role in scaling customer interactions, it is essential to strike a balance with the human touch. Joint Business Plan initiatives should aim to combine the efficiency and scalability of automation with the personalization and empathy provided by human interactions. This balance ensures that customers feel valued and understood while benefiting from the convenience and speed of automated processes.

Measuring and Optimizing Customer Experience in the Context of Joint Business Plan

Measuring and optimizing customer experience is vital for the success of Joint Business Plan. Retailers can utilize various metrics, such as customer satisfaction scores, Net Promoter Score (NPS), and customer feedback, to assess the effectiveness of their Joint Business Plan initiatives. By analyzing these metrics and making data-driven improvements, retailers can continually enhance the customer experience and drive long-term success.

Future of online retail: 2024 and beyond

Emerging e-commerce technologies and trends related to joint business plan.

As we look ahead to the future of online retail, several emerging technologies and trends will shape the landscape of Joint Business Plan. These include:

• Artificial intelligence and machine learning: AI and ML will enable retailers to automate processes, personalize customer experiences, and make data-driven decisions.
• Augmented reality and virtual reality: AR and VR technologies will transform the way customers interact with products, enabling virtual try-ons and immersive shopping experiences.
• Voice commerce: With the increasing popularity of voice assistants, voice commerce will play a significant role in enabling seamless and convenient shopping experiences.
• Sustainability and ethical practices: Consumers are increasingly prioritizing sustainability and ethical practices. Joint Business Plan strategies that align with these values will gain traction in the future.

Predictive Analysis of Joint Business Plan Evolution in E-commerce

Predictive analysis suggests that Joint Business Plan will continue to evolve and become an even more integral part of e-commerce in the future. With advancements in technology, retailers will have access to more sophisticated data analytics tools, enabling them to make accurate predictions, optimize pricing strategies, and personalize customer experiences. The evolution of Joint Business Plan will also involve deeper integration with emerging trends such as social commerce, influencer marketing, and subscription-based models.

Preparing for Future Challenges and Opportunities

As the e-commerce landscape evolves, retailers need to prepare for future challenges and opportunities. This involves staying updated on industry trends, investing in technology and talent, and fostering a culture of innovation and adaptability. Retailers should also proactively seek partnerships and collaborations that align with their long-term growth strategies and enable them to leverage new opportunities.

Long-Term Strategies for Staying Competitive with Joint Business Plan

To stay competitive in the long run, retailers should focus on the following strategies:

• Continuous innovation: Embrace emerging technologies and trends to stay ahead of the competition and deliver exceptional customer experiences.
• Data-driven decision-making: Utilize data and analytics to gain valuable insights, optimize Joint Business Plan strategies, and drive growth.
• Customer-centricity: Prioritize the customer experience and personalize interactions to build strong and loyal customer relationships.
• Strategic partnerships: Collaborate with partners that align with your brand values and contribute to your long-term growth objectives.
• Agility and adaptability: Embrace change, be agile in your operations, and adapt your Joint Business Plan strategies to evolving customer expectations.

2024 action plan for e-commerce success

Comprehensive steps to optimize joint business plan for your online store this year.

To optimize Joint Business Plan for your online store in 2024, follow these comprehensive steps:

• Assess your current state: Evaluate your existing Joint Business Plan initiatives and identify areas for improvement.
• Set clear objectives: Define specific objectives for your Joint Business Plan, aligning them with your overall business goals.
• Identify strategic partners: Research and identify potential partners that align with your objectives and target audience.
• Develop a detailed plan: Collaborate with your partners to create a comprehensive plan that outlines shared activities, timelines, and responsibilities.
• Implement and monitor: Execute the plan and closely monitor the performance of your Joint Business Plan initiatives.
• Evaluate and optimize: Regularly assess the impact of your Joint Business Plan and make necessary adjustments to maximize its effectiveness.
• Foster ongoing collaboration: Continuously communicate and collaborate with your partners to nurture the relationship and drive mutual success.

Prioritization Framework for Joint Business Plan Initiatives

When prioritizing Joint Business Plan initiatives, consider the following framework:

• Alignment with business goals: Prioritize initiatives that directly contribute to your overall business objectives and growth strategies.
• Potential impact: Assess the potential impact of each initiative on key performance metrics such as revenue growth, customer acquisition, and customer satisfaction.
• Feasibility: Evaluate the feasibility of implementing each initiative based on available resources, budget, and technical capabilities.
• Customer-centricity: Give priority to initiatives that enhance the customer experience and drive customer satisfaction and loyalty.
• Collaboration potential: Consider the potential for collaboration with strategic partners and the value they can bring to the initiative.

Change Management Strategies for Smooth Implementation

Implementing Joint Business Plan often requires a change in processes, systems, and organizational culture. To ensure a smooth implementation, consider the following change management strategies:

• Clearly communicate the benefits and objectives of Joint Business Plan to all stakeholders.
• Involve key team members and partners in the planning and decision-making process.
• Provide training and support to employees to help them adapt to new processes and technologies.
• Foster a culture of collaboration, innovation, and continuous improvement.
• Regularly communicate progress and celebrate milestones to keep stakeholders engaged and motivated.

Key Performance Indicators (KPIs) to Track Progress and Success

To track the progress and success of your Joint Business Plan initiatives, monitor the following key performance indicators (KPIs):

• Revenue growth: Measure the increase in sales and overall revenue attributed to Joint Business Plan.
• Customer acquisition cost (CAC): Track the cost of acquiring new customers through Joint Business Plan initiatives.
• Customer lifetime value (CLV): Analyze the long-term value of customers acquired through Joint Business Plan.
• Conversion rates: Measure the percentage of website visitors or leads that convert into paying customers.
• Customer satisfaction: Monitor customer satisfaction scores, feedback, and reviews to assess the impact of Joint Business Plan on customer experience.

Joint Business Plan holds immense potential for driving growth and success in the e-commerce landscape of 2024 and beyond. By collaborating with strategic partners, online retailers can align their goals, optimize operations, and deliver exceptional customer experiences. This comprehensive guide has provided insights into the key impacts of Joint Business Plan, critical considerations for its implementation, potential benefits and challenges, and future trends to stay competitive. By following the step-by-step guide and leveraging the provided strategies, retailers can unlock the full potential of Joint Business Plan and achieve e-commerce success in 2024.

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How to Create an Effective Joint Business Plan

For two businesses to form a joint venture, they need a plan that outlines the nature of the business coalition. A joint business plan defines the state of the companies involved, the purpose of the joint business and the partners’ responsibilities.

A joint business plan describes all the activities that these business ventures must carry out to achieve specific goals.

The relationship between the two parties and their goals must be clearly understood. After creating the business plan, it must go through a legal review to test its legitimacy. In your business planning, you work together in a collaborative relationship toward mutually agreed terms.

Business planning for joint ventures helps the parties leverage resources, reduce costs, combine expertise and/or enter foreign markets. A well-defined joint business plan is vital for any agreement and business strategy.

What is a joint business plan?

A joint business plan is a document that defines a merger between two or more companies. It describes the purpose and responsibilities of each partner in the incorporation. You may also see it as a collaborative process of planning where a supplier and retailer agree on both long- and short-term goals, including growth, finances and shared initiatives for profitability.

The purpose of a joint business plan is to design a win-win strategy for increasing consumer sales. This plan allows the partners to build a formidable relationship with retailers for mutual support and benefits. Having agreed upon goals, both parties share insights on a common vision for better support, customer growth, enhanced process and improved sales.

Business planning depends on interested parties sharing their plans with defined mutual growth opportunities. The partners can detail and share strategic planning, growth strategy, tactics and any area of competitive advantage.

The joint business plan is created once a partnership agreement is mutually beneficial and defined. Parties would draw up, approve and sign a formal contract before the execution of the plan. This is followed by a periodic review of joint scorecards based on necessary performance metrics to fine-tune strategies.

The joint business planning process comprises every possible logistic, including human resources planning and how to reach project milestones. Resource accountability is vital to building trust. Your best tool for transparent resource use and accountability is a resource planner .

If the employees of the venture will need to go to a different location, the venture will likely have difficulty planning their tasks and locations. TimeTrack Auto-Scheduling provides joint ventures with a transparent planning tool that reduces effort and enhances error-free shift planning.

TimeTrack Auto-Scheduling

Types of joint business plans

Standard plan.

This is often referred to as the working plan. It offers an overview of the company, outlines its goals, and details when and how entrepreneurs wish to achieve the goals. Such a plan helps secure funds, investments or loans. Within the plan, you could specify how you will use investor funds and their potential profits.

What-if plan

Sometimes things don’t go as planned in business. The what-if business plan defines the various roadblocks that a company might face as it strives to achieve its business objectives. The venture is largely at the whims of external factors, including the supply chain and stock market. You need to outline a predictable scenario to let business partners know how to recover their funds.

One-page plan

While a detailed plan is vital, there are instances where you will need to provide an abridged version of your plan. This one-page business plan outlines the summary of demand, solution, model, management team and action plan.

Start-up plan

A business plan for entrepreneurs, especially those in the early stages of their business planning, will need a start-up business plan. It is designed to give potential investors the bigger picture and outline how you want to achieve your goals. It often includes an executive summary, background, product and service descriptions, market analysis, costs and financial projections.

Expansion plan

This is a business plan that’s necessary when you need to scale your business and identify the necessary resources for its development. These could be financial investment, an additional workforce, new products or raw materials. This plan will detail the business background, needed resources and how they will contribute to growth and business expansion.

Operational plan

An operational business plan revolves around near-term goals , especially those you will work towards achieving within a year. It defines the activities your venture will focus on and emphasizes the role of the workforce and budgeting in achieving the operational goals. In most situations, the heads of departments are key participants in the operational plans because of the need for approval in achieving the goals.

Strategic business plan

This is different from the others because it focuses on how departments can work together. This venture plan is more comprehensive and requires senior-level approval before implementing goals. This plan answers the questions of how to achieve goals, what resources are needed and the execution plans for achieving the goals.

Joint business planning tips

Companies that benefit from a joint business plan

A joint venture exists mainly as a contract between new cooperating partners. In forming a joint venture, each of the business partners agrees to the assets they will bring to the table and how income and expenses will be shared.

While a joint venture is a corporation between two or more entities, each of the companies, be it an individual, company, corporation or group of individuals, still has its original legal status, though not all joint ventures result in a new business entity. These companies could be sole proprietorships or partnerships, limited partnerships, corporations, limited liability companies or non-profit organizations.

Examples of a joint business plan

Perhaps you have an online venture selling high-quality products at reasonable prices, while needing to increase brand strength. Such an example of a joint business plan outlines a company overview, executive summary, product and service offerings, marketing strategy, market analysis, budget and financial planning.

A joint business plan may be designed for ventures rendering menu services such as lattes, espresso, coffee, cappuccinos, and sandwiches. The business plan outlines an executive summary and studies your competition , target market, marketing plan, ownership structure and operational plan.

A joint venture could be designed around offering services such as shipping, faxing, postal and copying to residents to conduct research , create debate space and generate ideas. This example of a business plan will include an executive summary, a vision and mission statement, goals, objectives, and measures, organizational structure, marketing analysis and a financial plan.

Top strategies for effective joint business plan

In a joint business venture, there are risks which include rising complexity, cultural diversity, high failure rates and language diversity. The strategies detailed below will benefit the venture in navigating the challenges through effective joint business planning.

Strategic plan

Strategic global planning is an effective business practice for entering a new market. It helps to identify opportunities and threats. Before beginning strategic planning, be sure that a joint venture is the right action for you. Compare the strengths and weaknesses of the partners to confirm a good match. Your strategic plan should explain why you want to collaborate with that partner and what you hope to achieve, how to monitor trends and collect good data. Some of the reasons you may wish for a new joint partner may be to enter a new market, geographic expansion, financing, etc.

The right partner

The choice of partner is crucial, but what is more important is understanding the effectiveness of partners in delivering on their promises. Do your due diligence on your partner’s attitude toward collaboration, performance and level of commitment. What about sharing the same objectives?

Effective communication for a great relationship

After your investigation, if you deem the partner fit, find mutual ground. Communication is the key to a good relationship. Make sure your partner understands the foundation of the joint venture and agreement. Ensure they agree on human resources, financial contributions and goals. To consolidate the stability of your venture, be upfront, honest and transparent about your objectives.

Clarify how, what, and where

Be clear on the vision, strategic plans and scoreboard to ensure that everyone is energized and united about the goal. Define a common working pattern. This has to include conflict management, decision-making, collaboration, problem-solving and technology strategies. Focus on win-win solutions.

Track performance

Is everyone putting in the hours and making productive headway? One way to gauge this information is by time tracking. One of the challenges for companies whose employees work in shifts and in different locations is tracking attendance. TimeTrack Attendance Tracking helps companies monitor employees’ work hours and leave days, so that managers can stay up to date on potential delays.

TimeTrack Attendance Tracking

Once you have set out the goals and vision for the new venture, establish key performance indicators, the data you want to track and the process to measure those performance metrics. This involves creating a joint scorecard for each metric against trends and competition. The targets you set must guard against possible problems the partners might encounter.

Build trust

Your best joint business strategy is to build trust and create value, without which your partnership is bound to fail. Trust is the foundation of every partnership. It is an important factor in business planning. Without it, neither partner can succeed. How do you manage diverse cultures, interests and languages if the partners lack trust? Trust builds team strength and encourages creativity while promoting collaboration.

Good leadership

The cost of poor leadership is so high that you must not venture into joint partnership without assurance of good leadership. Focus on building good leadership and not just creating “bosses”. Leadership presents the biggest opportunities to change the performance narrative. Create a strong leadership team, from whom all employees can learn.

A joint business venture is not without its challenges. To ensure a successful collaboration, focus on a clear strategy, excellent communication, transparency and strong leadership.

I am a researcher, writer, and self-published author. Over the last 9 years, I have dedicated my time to delivering unique content to startups and non-governmental organizations and have covered several topics, including wellness, technology, and entrepreneurship. I am now passionate about how time efficiency affects productivity, business performance, and profitability.

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JOINT BUSINESS PLAN: Top 7 Secrets To Successful Joint Business Planning&

• by Kenechukwu Muoghalu
• August 14, 2023

Table of Contents Hide

What is joint business planning, what are the benefits of a joint business planning, what is a joint business plan , #1. have a plan, #2. choose the right joint venture partner , #3. communication, #4. define the where, what, and how, #5. monitor performance, #6. build trust, #1. how ready are you, #2. choose the right partner, #3. source business together, #4. ending a joint business planning, what if i lack the skills to create a joint business plan for myself, joint business plan faqs, what should be in a joint business plan, how do i set up a joint venture in the uk, how do you split profits in a joint business.

If you have plans to join a joint business, you have to understand the ethics of this venture before you proceed. You will need to set the right objectives for the business partnership. You will also need to have a joint business plan stipulated just for this course. There are a lot of processes, but not to worry. This article has exclusively explained what a joint business plan is and how it can help your investment, coupled with a sample template that can help make your journey easier. Let’s dig in!

Joint business planning is a collective effort between a vendor and a retailer. In this form of business, the two parties will be involved in the open sharing of information. However, it allows the joint parties to reach common ground and mutually agree on the business plan. I will give it a simpler definition, I need you to understand the basics of this Joint business planning. 

A joint business plan can also be said to be an agreement between two or more businesses in order to pool their resources to achieve a goal. It’s just like two or more people running a business. A joint partnership can be initiated in any business. A sample of this can even be found in jointly owning a personal trainer business and turning it into a joint business. 

They also share the risks and rewards of the investment. The joint companies also collectively own equal shares and put their heads together to make their investment successful. They work with trends, initiatives, and forecasted market environments. 

People can choose to open a joint venture for multiple reasons. It can be due to a business expansion, a new product development, or moving into new markets, especially internationally. Or just practicing the adage that says “two heads are better than one”. 

However, it can be difficult to build the right relationship that can boost the venture. But with the right resources, which includes having a joint business plan to serve as a guide, you would scale through. You should also know that Joint business planning with partners has proven to be one of the most effective ways to drive revenue and establish joint accountability.

Having talked about what a joint business venture is, now we will talk about having a plan that will serve as a guide through your investment. A joint business plan is a document that outlines a business coalition of two or more companies. This joint business plan is divided into several sections which state the companies involved, their purpose, and their responsibilities in the business. 

In summary, you can say that the plan contains temporary activities that can help achieve specific goals. What a proper joint business plan requires is to incorporate each party and make sure they clearly understand themselves and their goals. After the plan is been created, it will need to pass through a legal review just to test its legitimacy. 

Read Also: JOINT LOAN: Definition And All You Need To Know

Mind you, this joint business plan is above and beyond a standard business plan . It can also help you plan some measurable objectives, execution tactics, go-to-market, target account lists, and more. This business plan can serve you well, especially when it is for a joint business. Keeping track of all your business activities is a must because other people are involved in the investment. You can try checking your partner’s progress once in a while against the agreed plan.

Top 7 Secrets To a Successful Joint Business Planning

When it comes to joint business planning, there are secret tweaks that can help you scale through. You know Joint business comes with risks because of its joint partnership nature. Partnership most times can be diverse language, increased complexity, diverse cultures, and frequency of failure.

That is why we have formulated the top 7 secrets to having a successful partnership. Let’s take a quick rundown on them.

It always pays off to have a strategic plan on standby in your joint business. Your joint partnership should kick off with careful planning. To aim this, review your business strategy to see if a joint venture is even the best way to plan and achieve it. Consider the businesses involved, and compare their strengths and weaknesses to determine if it is a good match. Your strategic plan has to also answer why you want to partner with what you need to achieve from it. Is it for geographic expansion, new markets, or funding? Being clear will make the parties involved work towards achieving their objectives. 

Before going ahead to choose a partner, it is wise to determine how well they perform. Find out their attitude to collaboration and their level of commitment. Find out if you share the same business objectives with them, are the people you could trust? Do they have a nice reputation? These questions are necessary to determine who you are going into business with. Do your due diligence checks and don’t spend time having lunches with them. 

After your little investigation work on your partners, and hold a common ground with them if they fit. Communication can help build a relationship. Ensure that your partners understand what the basics of a Joint Business agreement really are. Are they clear on the goals, human resources, and financial contributions? This is the time to meet them, have those one-on-one meetings with them, communicate and make the best out of it. If you fail to plan like this, your joint business won’t be stable.

Create ways of working to energize and unite the partners involved. Map out the vision, strategic plans, and the scoreboard to make sure that everyone is following a common goal. Provide a common working pattern that includes decision-making, problem-solving, conflict management, collaboration, and technology. Find a way to deal with problems that occur, and look for win-win solutions instead of trying to score points off each other. 

When your partners have reached common ground on what the goal is, then let the work begin. You and your partners should also establish a clear performance indicator that allows you to measure your performance towards the goal. You should also set targets so that you can keep track of any possible problems that might occur. 

To be honest, this is the most crucial step in these secrets. You should understand that without trust, your Joint partnership will fail. There is no need to paint the truth to make it appear nice. Every team needs trust amongst themselves. Imagine having companies merging together, having diverse cultures, languages, and interests without trust. How do you think that ship will sail? When you have trust in someone, their differences turn into strengths. You will also tend to encourage creative challenges just to promote collaboration. This is an important factor that should not be ignored in your joint business planning.

This is another important variable that needs to exist in a Joint partnership because, without it, things will fail to happen. Invest in leadership, don’t focus on the senior leader, because even those leaders at the pointy ends will do just great. The reason for this action is that leaders tend to be the biggest opportunity to shift performance. You need to have a strong leadership team. And they must trust each other, connect, listen, and engage like no other. 

Joint Business Plan Template Checklist

To summarise all that is been said in this article, we have also included a sample template checklist that can help you prepare for and plan a successful Joint business. To make use of this joint business plan sample template effectively, you have to make sure that you follow all the options listed below. They include:

This is a joint business plan template you need to check off your list. Determine how ready you are, is your business also ready for the change? You can determine this by researching on the activities of other businesses. You can also carry out a SWOT analysis of your business. Compare your working methods with that of your partners and also involve your employees, tell them about your new plan.

This is been mentioned again for those at the back. It is crucial to choose the right partner. When choosing you should consider their existing customers and suppliers, their behavioral patterns, and also the available finances of the partners. 

Know the capabilities of your partners, and discover which has a specified responsibility. It can be sales activities, marketing, or new business generation. Each company should understand what they should work for and see that they achieve it. 

Most times, we should consider all possible factors because of the fear of the unknown. Your agreement with your partners should make provisions for terminating the joint partnership. In your agreement, make sure to include an exit strategy , specified ownership of assets in the business, and distribution of any weaknesses resulting from the joint venture. 

We got you, just right in time. We understand where it pains the most and we also understand why you would have so much difficulty creating a joint business plan for yourself even with the provision of a sample template. If this is you, then you need not worry.

Creating a business plan from scratch is no child’s play. It can even be harder while trying to use an existing plan to mold yours. You don’t have to if you don’t want to, because we have created a ready-made joint business plan just for your comfort.

This business plan does not require you to spend most of your day trying to figure out one section or the other. All you need to do is to apply directly to your joint business and watch it blossom. No long talks! Grab a copy of your joint business plan here !

It is certain that having Joint business planning can be difficult and challenging with tons of risks to take. But there is always a way around every hard obstacle. If you carry your Joint partnership and nurture it in the right way while following all the rules that apply, then you won’t have a problem.

These rules can be either creating a Joint Business plan or following some basic factors that can help maneuver your way through the investment or even using a sample template. When you follow the rules and secrets that guide them, then your investment won’t be the same. If it gets too hard, then contact us here.

To acquire a successful joint business plan, you need to ensure that both parties involved are capable of understanding each other’s goals. They should also understand the nature of their business and customer requirements. When they are on a mutual level, their foundation becomes strong.

To set up your joint business in the United Kingdom you will need to check the exact legal status of the new business. You can also begin due diligence on your joint partners. Know the financial commitment and how profits can be earned.

Before splitting the profits in a joint business, you must ensure that all business partners are in agreement about the profit-sharing. It can be split equally or on a different base according to the original agreement.

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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Last Updated on August 15, 2023 by Kenechukwu Muoghalu

Joint Business Plans: Top Tips for Successful Retail Collaboration

Our top tips on how to develop a joint business plan with your retail partner..

Aug 21, 2023

Joint Business Plans (JBPs) are strategic collaborations between suppliers and retailers to drive mutual growth and achieve shared business objectives. These plans outline the joint activities, goals, and strategies that both parties will undertake to grow retail sales, enhance profitability, and improve the overall performance of the partnership.

JBPs are usually negotiated once a year, at the start of the retailer's financial year. Most things that happen in that year such as distribution changes and promotional space offered are usually dictated by the JBPs; that doesn’t mean that changes not specified in the JBP won’t happen but in general, they influence the year’s decisions.

Here's a few of our top tips to developing Joint Business Plans:

1. understand the retailer's business objectives:.

Gain a deep understanding of the retailer's overall business strategy, goals, and priorities. 

2. Align with retailer's strategy:

Ensure your business objectives align with the retailer's strategy. Identify areas where your brand or product can contribute to the retailer's goals.

3. Gather data and insights:

Collect relevant data and insights to support your JBP. This includes market research, consumer trends, sales data, and shopper behaviour analysis. 

4. Develop strategies and action plans:

Work together with the retailer to develop strategies and action plans that will help achieve your defined goals. 

5. Communicate and review:

Maintain open and regular communication channels with your buyer throughout the JBP implementation. Schedule periodic meetings to review progress, share insights, discuss challenges, and make any necessary adjustments. 

6. Accountability & Conditionality:

Within the JBP it’s likely you’ll have invested in the retailer to gain additional space or get new products listed etc. Ensure you only pay investment that was linked to changes once that change has been completed by the retailer; this is referred to as conditionality.

Conclusion:

Remember, a successful Joint Business Plan requires strong collaboration and a focus on mutual growth. By aligning goals, strategies, and resources, suppliers and retailers can create a powerful partnership that drives sustainable business success.

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