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Driving growth in the new reality

Catharina Stackelberg

PMI Finland Conference - Grow! 17.5.2018

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Megatrends are shaping businesses faster than ever before

Disruption in retail: rise of e-commerce and

loyalty towards platforms (e.g. Alibaba)

The annual amount of plastic waste ending up in the ocean = 5 grocery bags filled with plastic for every foot of coastline in the world

CLIMATE CHANGEDIGITALISATION

AGEINGPOPULATION

INDIVIDUALISM

THE SHARINGECONOMY

The winner takes it all e.g. Amazon vs. local stores

50% of the world’s population lives in urban areas

(In 2050 it will be 70%)GLOBALISATION URBANIZATION

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Winners drive growth with an inspiring Purpose

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Designing an inspiring transformational strategy to drive growth

Key capabilitiesand competitive advantages

Key forces of change and

future landscapes

AmbitionFuture ecosystem

Heritage People and culture

TRANSFORMATIONAL PURPOSE

What is our inspirational reason for being?

GROWTH ENGINEWhat are our growth

drivers?

DNAWhat are our core

strengths that we build our growth on?

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Marketing Clinic strategy process framework An inspiring transformational strategy driving future growth

Growth area

Growth area

Growth area

Growth area

Growth area

1

2

3

4

5

TRANSFORMATIONAL STRATEGY

GROWTH STRATEGY

GROWTH STRATEGY EXECUTION

MWB’s & KPI’s

Purpose

Growth engine

DNA

Organic growth

M&Adrivengrowth

Business Unit 1

Business concepts and

GTM

Business Unit 2

Business concepts and

GTM

Business Unit 3

Business concepts and

GTM

Acquisition Z

Acquisition Y

Acquisition X

M&A strategy,

scanning & evaluation

Business Unit 4

Business concepts and

GTM

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Purpose also drives brand differentiation

From “What” to “Why”

TANGIBLE/ RATIONAL

INTANGIBLE /EMOTIONAL

Who we aretalent & attitude

What we doproducts & services

How we do itskills & approach

Why we do itpurpose

What we haveinfrastructure

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A mindset shift is needed

What WhyPoint of difference Point of view

Market-driven Ethos-drivenCompetitive Distinctive

Employees MissionariesConsumers Advocates

Communications CommunitiesAds Actions

Social responsibility Social opportunityLoyalty Love

Transactional leadership Transformational leadershipNext quarter Next quarter century

A BRAND A STAND

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Winners base everything on superior customer experience

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Winners base everything on superior customer experience

Demand creation

Omni-channel

sales and consumer

service

Media management

Brand and communi-

cations

Customer Journey

Data

Productmanagement

Innovative concepts

Insights & analytics

End-userexperience

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The Journey is the Product – and the Customer is the Channel

900Digital

interactions

71%on mobile

139 Google searches

14 YouTube-videos

89 Images

69 Dealer interactions186 Manufacturer interactions

Source: Google

PHASE 114 brands

PHASE 32 brands

PHASE 26 brands

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Winning brands aim for end-use dominance

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Dollar Shave Club Disrupted a 8bn$ business (Gillette) in 36 months. Unilever

bought access to 3 million bathrooms for 1 billion dollar

Dollar Shave Club

DISTRI-BUTIONSUPPLIERS RETAILERS

MARKET SHARE

MEGATRENDS:

Sharing economy Digitalization Individualism

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Amazon captures customer loyalty in FMCG with Amazon Dash

SET IT PRESS IT

GET IT

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Changing consumption

behaviour drives the decision.

Walt Disney seizes the business potential in own streaming service

In 2016, Netflix had exclusive streaming

rights of Walt Disney’s movie content.

In 2017, Disney announced it will pull its movies from Netflix and start its own streaming service in 2019.

Disney is actively building this vision through strategic acquisitions e.g. majority shares of the 21st Century Fox and the streaming

service BAMTech (2017).

Streaming service

2016 2017 2019

!

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Winners leverage brand and customer assets in M&As

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More focus on value creation in M&As is required

70%OF COMPANIES FAIL TO REACH REVENUE TARGETS IN M&A (HBR, 2017)

-7%-POINTLOSS IN SALES GROWTH AFTER M&A´S(McKinsey, 2017)

74% OF ACQUIRED BRANDS CEASE TO EXIST UP TO 7 YEARS AFTER THEIR ACQUISITION(Landor, 2017)

50% OF EXECUTIVES STATE THAT SALES AND MARKETING CAPABILITIES IS THE MOST CRITICAL GAP IN INTEGRATION(McKinsey, 2017)

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Why growth and M&A do not always go

hand-in-hand?

Why is value capture in M&A so difficult?

Market, brand and customer insights and facts are often lacking and brand decision are made based on emotions

Value proposition to markets and customers is not altered to encompass the new offering portfolio and capabilities

Value creation and growth get far less attention than short-term synergies

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CREATING POSITIVE IMPACT

Catharina Stackelberg

Marketing Clinic Swedenwww.marketingclinic.se

Marketing Clinic Norwaywww.marketingclinic.no

Marketing Clinic Denmarkwww.marketingclinic.dk

Marketing Clinic Finlandwww.marketingclinic.fi