Building growth strategies
In September, we gathered at Marketing Clinic to discuss growth and building growth strategies. These topics are on the agenda of vast set of companies after years of restructuring; Saving projects are no longer the key to increase the profits.
Disruption is occurring at the pace we have never seen. That requires each company to understand what the new reality brings to its business. Zooming out from the current profit pool is essential, since somebody’s strategy is to break it. One example we discussed in the workshop is Dollar Shave Club, a company offering direct-to-consumer on-demand affordable razors via web. They have managed to disrupt Gillette’s business model, showing that established players with strong brands are not safe from disruption. As well expressed in Marketing Clinic’s blog post, the importance of focusing on the value you deliver to customers cannot be overemphasized. Experience of the customer is everything.
When building growth, competitive advantage must be clearly defined. Marketing Clinic’s blog names automotive industry and Tesla as one excellent example of this: “Although Tesla’s purpose is not related to cars specifically, they have several unique competitive advantages including crowd-based financing, distribution independent of dealers and their demanding corporate culture.” Again, an example of very established industry!
In the workshop, Marketing Clinic’s recipe for growth strategy included defining the impact of your business in the new reality, a transformational purpose. As they state in the blog: “Businesses tend to focus on pursuing short-term success. In the new reality, business requires you to make an impact that may differ from your internally established targets.” In the workshop the need for the purpose was also challenged; is that necessary?
Finally, growth strategy must include the analysis on why the customer chooses your company. The best companies appeal to the customer’s emotions. As stated in the blog, the key to this is understanding what the customer is experiencing and aligning your presence relevantly along their journey. The one owning and controlling the customer journey has the power. In Dollar Shave Club’s case, Unilever bought the company, getting into direct contact with consumers with access to over 3 million bathrooms.
A more in-depth article on winning in the new reality can be found in Marketing Clinic’s blog posts: https://www.marketingclinicpartners.com/2017/01/16/combining-perspectives-winning-new-reality/ and https://www.marketingclinicpartners.com/2017/01/24/combining-perspectives-winning-new-reality-pt-2/.
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