Have you heard the term Coopetition? If not, you’ll hear it soon. It is causing a stir in marketing circles.
So if you are not familiar with the term, let’s start by defining coopetition. If we check the Wikipedia, we find the following definition:
“Coopetition or Co-opetition is a neologism coined to describe cooperative competition Co-opetition occurs when companies work together to half their business where they do not count. They have competitive advantage, and where they believe they can share common costs. For example, cooperation between Peugeot and Toyota of common components for the new city car in Europe in 2005. In this case, the company will save money on overhead costs, while remaining fiercely competitive in other areas. co-opetition to work, companies need to very clearly define where they are working together, and where they are to compete. “
long-term business success comes not only from competing successfully against other restaurants, but also by working with them to your advantage.
Coopetition is part of the competition as part of cooperation. When restaurants work together, they can create a much larger and more valuable market they ever could by working alone. Restaurants can then compete with each other to determine who takes the greatest part of the greater number of potential customers.
A good example of coopetition between restaurants is when it is part of a city or town that has several restaurants concentrated in a relatively small area. If you look at this area from traditional business point of view, open food establishment looks like a bad idea.
Why would anyone open a restaurant in an area already full of restaurants?
The fact is that a lot of places to eat attracts customers who may visit the area without a specific restaurant in mind, and make their decision when they arrive.
This is where the competition begins.
Typically, the restaurants with the best environment or the most attractive in the menu or the best quality / price, which are filled with the most people, usually bring in the most customers …
There are many typical examples of coopetition such as:
o Food court: All restaurants are set in places like shopping malls – share tables, parking, cleaning services, etc. Customers are brought in the same place (cooperation), and then they compete for their business (Competition)
o Ads: .. Sometimes restaurants work to put together a food magazine or similar publication, as they each contribute ( both in cash and in content) publication
o special events food: Sometimes several restaurants organize food events where they promote food showcase their products at the food stalls. Because of the involvement of many restaurants –and good marketing -. A lot of people attend this event (it is usually the music part and often many other activities as well)
As you can see, these are some of the possibilities to coopetition. However, there are some other intriguing ideas for you to consider. Here you have a few to think about:
o Cross-promotion with restaurants that offer a different assessment than yours. Often menu not compete directly with other restaurants. If you’re in the mood for Italian food, for example, she will not go to an Indian restaurant for dinner or vice versa.
Maybe you can join the restaurants in your area who have different styles of cuisine, and together create a coupon book you can distribute regular customers participating restaurants. Or maybe you could create a discount card that customers can use in any restaurants in your area. This will attract more customers to your neighborhood.
o Cross-promotion with restaurants that offer the same kind of food than you, but are not located near your place.
Again, usually prefer to go to restaurants that are near their homes or workplaces. If it is a French restaurant nearby and they are in the mood for French cuisine, they will not usually travel far on another French restaurant … except the French restaurant is so superior that it is worth the trip – and this is where competition kicks in .
what can you cross-promote? Well, if you have an ethnic restaurant you could create a newsletter sharing printing and distribution costs perhaps similar restaurants and distribute it to customers of all restaurants participating. The newsletter should include articles about food, culture, geography, etc. country restaurant.
But what if your restaurant is an all-American place? Provide unique information for your area. You can still have questions about specific countries, some local recipes, etc.
o join forces to negotiate better deals for linens, food and beverage, menu printing menus etc. Imagine that you talk to the owners of the nearby restaurants and you make an agreement to use the same distributors for common things like linens, candles, dishwasher maintenance and supplies, garbage and / or fat disposal, exhaust filters, printed menus, etc. You can then ask for a volume discount from distributors and everyone will enjoy.
These are just some quick examples of coopetition. To join hands with your competitors might be a win-win proposition. Just be smart about it and think about areas where you both can benefit.
Can you think of other areas to coopetition? I would love to know. Please visit my website and let me know.