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Growth Toolkit



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  • 1. Hypercompetition
    • The 7 S’s of Hypercompetition
      • Vision for Disruption
        • Superior Stakeholder Satisfaction - Customers and Employees
        • Strategic Soothsaying - To envision the future - and move beyond to create it
      • Capabilities for Disruption
        • Speed - like that employed by Rammel initially in the blitzkrieg across Europe, and later Patton, with their tank brigades
        • Surprise - in the context of Pearl Harbor and the Normandy Invasion
      • Tactics for Disruption
        • Shifting the Rules - as Dell accomplished in the PC market
        • Signaling - as IBM and Microsoft to hold off competitive innovation
        • Simultaneous and Sequential Attacks - attacking on more than one front, on a continuous basis where your competitor least expects it - leads to disorientation and disruption of their plans
  • 2. Strategic Leverage
      • Concentrating scarce resources given industry structure and company’s competitive position
      • Precisely identifying company’s area of leverage
        • What are feasible strategies ?
        • What are constraints to ability to maneuver?
          • Powerful buyers/suppliers, high degree of competition, mobility barriers
        • Competitive position and past behavior
          • Position - leader, #2 or 3, follower, new entrant
          • Nature of conflict - win/win, limited warfare, win/lose, lose/lose
      • Objective strategies and tactics
        • What capabilities or enabling competencies are required in order to exploit the leverage
      • Outcome
        • Definition of attainable objectives
        • Determination of required competencies
        • Enabling of “creative disruption” - changing rules of game to your advantage
  • 3. Target Marketing/Segmentation
    • Define long-term vision (10 year plan) - what business want to be in as market evolves, how want to play and where
      • Look for potential areas of growth, to expand
        • New uses of product, new users, bundles for particular customer
        • Critical mass vitally important to compete long-term
      • Establish segmentation plan - Goal #1 in Segment (Highest ROI)
        • Define types of products/services
        • Focus on satisfying and owning a segment or a niche - not the whole market, look for unoccupied niches
        • Stay in constant contact with customers and markets - moving targets
      • Timing - which segments in what order with what entry timing
        • Strategic - enter early to establish competitive position
        • Play to strengths - concentrate strength at point of competitor’s weakness
        • Use element of surprise - don’t alert competitors to your moves
        • Introduce fewer products with higher likelihood of success
        • Divide and conquer segments - one by one , niche by niche , making constant improvements
  • 4. Differentiating/Positioning
    • Differentiation - Key to Profitability
      • No other strategic decision has larger profit impact than superior differentiation
      • Has to register to customer that you are
        • Better, faster, newer, more cost-effective than competition
        • Me-too products/services don’t capture share of mind, poor ROI
      • Must develop meaningful differences - that matter to customer
        • Give customers what they want - when they want it
        • Focus on one or two differentiators to be clearly superior
          • Build upon them and sustain them over time
        • Be first to market with them
    • Positioning - designing and communicating your distinct personality in the marketplace
        • Positioning is what you do to the mind of the customer
          • Volvo - safety, IBM - service, BMW - performance
          • SA - Leading the Way in the Information Age
        • Customers need to clearly describe your position with great consistency
      • Needs to be rooted in understanding of how Target market:
        • Defines value and makes choices among products and competitors
  • 5. Options to Differentiate
      • Speed - React quickly. Capture the leadership position by being first to market.
        • Get it to customer faster - Perform series of programs and processes simultaneously
      • Reliability - Earn customer loyalty. Deliver products and services of consistent quality.
        • Give the customer what they want, the way they want it, when they need it.
        • Do what you say you are going to do. Do it consistently. If something happens - don’t make it the customer’s problem.
      • Service - Satisfy the customer - meet their needs for service.
        • Augment the product - can achieve premium price for commodity product. Key to competing where there is product parity.
        • Driving down level of dissatisfied customers also improves level on satisfied ones
      • Technology - Innovate. Find new applications for emerging technologies and identify customer value.
        • Bigger, faster, cheaper, new approach, disruptive
  • 6. Options to Differentiate
      • Relationships - Nurture them. Everyone in the organization must be market-driven.
        • Devote more effort on keeping profitable customers
          • Cost much more to get new one than keep old one - up to five times more
        • Not good enough to have the most technologically advanced product, provide good service - when everyone else can
        • Objective - Keep customers you have and maximize lifetime value
          • Focus on delighting the customer so they are not interested in leaving
          • Fix the problems - highest leverage area
      • Design - Perception is everything. Design the look and feel of products to standout in marketplace.
        • User -friendly - to start-up, to use, repair
        • Deliver on dimensions important to customer
      • Features - know what attributes customers value, will pay for and focus here.
      • Personality - define yourself. Create distinct image.
        • Achieve brand image for positioning and corporate personality that represents set of values customers are interested in
  • 7. Innovation
      • Gain innovative advantage - shorter innovation cycles capture new opportunities: SPEED KILLS
        • Build relationships with major directional customers
        • Anticipate customer needs given changes in technology and lead them in development of information management solutions
          • Keep abreast of emerging, and potentially disruptive technologies
        • Improve product and process innovation capabilities that support concept development and overall performance and cost enhancements
          • Leverage capabilities with internal development group, suppliers, customers, associations, universities and partners
          • Target design-to-prototype cycle time reduction of 25%+
      • Define and Achieve Leadership with Directional Customers
        • Establish strategy for each Directional Customer
          • Strategy defines needed products, services, marketing and selling strategies and efforts to achieve operational excellence in the eyes of this customer
        • If satisfy the “most difficult” customers - this will pull organization to higher level for rest of customer base
  • 8. Top and Bottom Line Enhancements
    • Ways Sales and Marketing can boost sales and profits
      • Identify market trends to access accurately the future profit potential of a business
        • Analytical scenario of future market conditions
      • Develop business strategy, marketing strategy and plan that
        • Creates strategic leverage and builds upon strengths/core competencies of the firm
        • Identifies new competencies needed to achieve/sustain leadership
        • Utilizes customer profiling, segmentation, and target marketing to
          • Grow current customer base and market segments
          • Identify and build profitable new market segments and niches
          • Better match of product/service bundle to customer needs
        • Achieves a differentiated market position - competitive advantage in product/service offering, way you do business with customer
          • Helps grow their business and impact their bottom line
          • Provides higher value to reduce price competition
          • Positions you as the best in category in the mind of the customer
  • 9. Top and Bottom Line Enhancements
    • Identify new product/service capability to add to product portfolio
      • Serve current customers - reduce cost of sales
      • Serve new customers
      • Improve margins
    • Identify and develop new channels to attract more customers and better serve them
      • E-commerce
    • Determine profitability of specific
      • Products/Services, Sales territories, Customer groups, Accounts within them, Trade channels or channels to market, Order sizes
      • Fully assign expenses associated with serving those accounts
      • Understand which contribute how much to your profit
    • Eliminate “losers”
      • Prune unprofitable product/services and customers
  • 10. Top and Bottom Line Enhancements
    • Increase profits by spreading Sales and Marketing costs over larger sales volume
    • Achieve differentiated product/service offering to make selling efforts easier and less expensive
      • Develop effective support programs - Customer Service and E-commerce
      • Support implementation of new sales, marketing and customer service approaches - Customer Relationship Management
        • Large Account Management, Strategic and Conceptual Selling
        • Sales and Marketing Automation
    • Sales and Marketing activity profitability analysis -
      • Improve productivity, spending efficiency and impact of marketing tools - Sales Force, Advertising, Sales Promotion
    • Sales and Marketing efficiency studies - how can sales and marketing activities be carried out more efficiently - Sales & Marketing Audit
      • Critically examine overall marketing and sales plan - objectives, policies, strategies and programs in light of changing market conditions
  • 11. Marketing Objectives and Tactics
    • Goal - Customer retention , loyalty , share and value maximization
    • Customer Targeting and Target Marketing
      • Work to build relationships with most profitable customers
      • Market concentration - focus on customers where can best improve their profits - reduce their costs, improve their sales or productivity
        • Make your joint growth a partnership
      • Specific strategy for each market and specific offer for each customer
      • Win the battle for Customer Loyalty - Commit resources to win
        • Set “extremely high” standards and make customer satisfaction everybody’s business - everyone is responsible and its “my problem”
        • Be obsessive in knowing, even better than the customer, what he wants
          • Enables you to anticipate product/service needs
        • Design products/services to maximize customer satisfaction -delight them
          • Focus on demands of most demanding customers
        • Create and manage expectations - manage performance to achieve it
    • Strategic Alliances/Acquisitions - take the offensive, do it faster
      • Provide complete package desired by customer
        • Compete effectively against “large” competitors
      • Use alliance to position for future acquisition - eliminate fears/barriers
  • 12. Plan of Attack - Top/Bottom Line Growth
    • Prepare the Marketing and Sales programs
      • Identify market trends to access future profit potential of a business
        • Scenario of future market conditions - potential areas of change, growth
      • Perform Customer Profiling, Need & Competitive Assessment
        • Market and Customer Segmentation opportunities, Directional Customers
        • Identify New Opportunities/Needed Competencies to achieve/sustain competitive advantage, leadership position
        • Understand how to help grow customer sales and profits, meet their needs
      • Profitability Analysis - products/services, territories, customers, accounts within them - what/who contribute how much to profits
      • Identify strategy that creates strategic leverage and builds upon the strengths/core competencies
      • Create Product/Service/Technology Roadmap
        • Investigate potential of disruptive technologies, products, approaches
      • Define Differentiation and Positioning strategy that provides
        • Competitive advantage in product/service offering, way do business
        • Best in category position in mind of customer
        • Reduction in selling efforts, expense and emphasis on price
      • Establish products/service portfolio, pricing, promotion and sales approach to serve market and customer targets, improve profitability
  • 13. Plan of Attack - Top/Bottom Line Growth
    • Communicate/Execute the Marketing and Sales programs
      • Grow and maintain current customer base
        • Develop high-level relationships with key customers
        • Move away from unprofitable products/services, segments and customers
      • Identify and build position within profitable new market segments and niches
      • Pursue new product/service and market opportunities , customers to diversify sales base
        • Become customer and region neutral
      • Investigate and Pursue Strategic Partnerships/Acquisitions
      • Improve sales force and promotion effectiveness , productivity
        • CRM/S&M automation, SS, LAM
        • Advertising, Sales Promotion
      • Develop effective sales support programs to attract more customers, better serve them
        • Customer Service
        • Define and execute e-Commerce strategy
      • Build an energetic and achievement-oriented Sales and Marketing team
  • 14.
    • Define need for increasing product/service coverage, presence to the sale and hit rate to grow market share
    • Develop and implement tailored, winnable strategies based upon:
      • Growing specific customer satisfaction, sales and profitability
      • Achieving meaningful differentiation/positioning in mind of Customer
        • When Airframe Manufacturers think of information management solutions - they think of SA
        • Will pursue 1-2 differentiators and be clearly superior - technology and reliability, could possibly tie in design or features and speed
      • Disrupting the “status quo” and creating a continuous series of temporary advantages
        • Speed, Surprise, Change the Rules, Attack on more than one front
      • Identification of feasible strategies
        • Understanding and utilizing changes in the market and technology
        • Leveraging strength and concentrating this strength in attacking weaknesses of major competitors
          • Brand image, portfolio of products and technologies, service/support organization
        • Understanding differences in purchasing behavior by individuals and regions
      • Implementing strategy in sequence to concentrate resources and win
    Targeted Sales and Marketing Strategy
  • 15. Sales Strategy
    • Focus entire Company on the customer - to help them achieve their strategy and bottom line
      • Focus is on development of customer relationship - not the deal
      • Sales works to solve customer’s problems - any and all of them
      • Everyone works to secure account revenue/maximize customer service
    • Objectives
      • Satisfied Customers, Long-term Relationships, Repeat Business, Referrals
    • Deliver Value to and Make Customers More Profitable and Successful
      • Differentiate on the quality of ideas and tangible bottom-line impact on customer’s business
        • Need to understand customer’s industry/business as well as application of products and services
        • Can impact Customer Speed and Productivity/Efficiency - receipt of inbound shipments, manufacturing process, shipment, marketing & sale and service of finished goods
        • Can build value proposition around business know-how, supply chain optimization, operation support, ease of doing business, organizational strength as well as product/service design
  • 16. Improving Sales Effectiveness
    • Account Maximization Strategies - 6 ways to win
      • Know Customer’s business and market in which they operate
        • Position to make them more successful
      • Become part of the organization
        • Integrate into operations of the customer (have our own badge)
      • Become a Consultant
        • Layer value onto product & service offering from delivering tangible, bottom-line impact
        • Demonstrate how products/services/ideas impact their business results
      • Create good operational processes
        • Easy to do business with - technical service, order placement, invoices, etc.
      • Work account at all levels
        • Within a function and across functions
      • Leverage relationships
        • Utilize success in one dept to others in company, other locations, subsidiaries, JV’s and outside the company (referrals)