What is Horizontal Marketing System?

Horizontal Marketing System refers to collaboration or partnership among firms at the same level in the distribution channel to combine their resources, expertise, and market presence. The focus of an HMS is to expand market reach, pool resources, and enhance competitive advantage. Some examples of HMS are:

1. Co-branding Partnerships: When two or more companies collaborate to create a product or service that combines the strengths of each brand, it is known as a co-branding partnership. This allows them to reach a wider audience and leverage their respective expertise.
2. Joint Ventures: Companies form a new entity to pursue a specific business opportunity, sharing resources and risks. This allows them to combine their strengths and enter new markets.
3. Cross-Promotions: Companies collaborate on marketing campaigns or initiatives to promote their products or services together. This creates synergy and allows them to reach a broader audience.
4. Strategic Alliances: Companies form partnerships to pursue common goals, such as expanding into new markets or developing new products. They share resources, knowledge, and distribution channels to achieve mutual benefits.
5. Consortiums: Multiple companies in the same industry join forces to address common challenges or pursue shared opportunities. They collaborate on research, development, and marketing activities to achieve collective goals.

The specific structure and objectives of a Horizontal Marketing System depend on the companies involved and the industry in which they operate. Examples of companies following horizontal marketing system are McDonald’s and Sinopec, Google and Johnson & Johnson, Nestle and Coca-Cola, etc.