“maximizing the value of your brands and services” strategy presentation.pdf- the mckinsey/ge...

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“Maximizing the Value of Your Brands and

Services”

Marketing & Communications Inc.


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Strategic Audit Strategy:

A successful strategy positions an enterprise and sets out a course of action that directs a company in capturing a competitive advantage that leads to increased profit and shareholder value. It should be noted that even though your Strategy is a longer term approach to focusing your business, this is not a static business tool and should be reviewed periodically especially in these challenging times. We would recommend at the start and mid year, and depending on changing market conditions on an as needed basis. (1) Resources: Look at your capital holdings, insurance coverage , has it be increased with the purchase of additional space or equipment? Make sure all patents, trademarks are current and secure. It is important to also look at your people and staffing in terms of their capabilities, and degree of satisfaction, the pay scale, and also review your relationships with key suppliers as these are, in many cases an important part of your business success. Don’t get caught with one main supplier, it is always wise to give some business to an alternate as backup. This is especially key if you have a sophisticated business that requires a steep learning curve for any new supplier to get up to speed. (2) Core Competency Analysis: These are usually those “soft” assets that are key to driving your business, maintaining your competitiveness and ensuring your company’s ongoing success. Any technological advantage in terms of software, processes, business relationships and client lists have to be protected and should be safeguarded against theft or misuse. (3) Performance Review A review and evaluation of the proceeding is important in defining the strategic capabilities of your business and in shaping a comprehensive strategy. There needs to be a series of questions asked in order to determine how your business ranks versus the general market and key competitors specific to market share, growth, sector domination, pricing, innovation, new product introductions and revenues and profitability if at all possible. Ideally your processes and business techniques should be reviewed as to their effectiveness and compared with best practices in your industry.

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(4) Portfolio Analysis:

For a small business, a Portfolio Analysis usually refers to your product line or line up of services offered. You may be active in more than one channel of distribution , for example retail, wholesale and Business to Business, and in that case, each channel should be reviewed and evaluated separately. It is important to treat each as a profit centre so you might know which is profitable and where you have weaknesses that requires attention.

I worked with a printing firm that lumped print, specialty printing, annual reports and magazines all together. The owner was quite proud of the fact, that when compared to other Toronto based printers, his firm was some 10% more profitable. Of course you know what is coming. His print operation was actually 15% less profitable than the average, he was barely breaking even on the magazine run, and was making virtually all of his profit on the specialty side of the business. Guess what, the two salesmen selling specialties were the lowest paid, and the three selling print, a losing proposition, were the highest paid. I recommended that at least one of the print ‘pro’s be switched over to specialties. He was and the sales jumped 12%.It was an easy fix, and a double whammy. Here’s the irony, the print losses dropped back from being 15% less profitable to 8 % less profitable once the higher salary and commission was moved out of the print side of the ledger. Of course I recommended other changes, but the owner liked things the way they were. He took me to his office window and pointed to his new Mercedes and said, Carl, how many more do I really need. He was happy and didn’t need the hassle.

This illustration points up an important consideration when reviewing a multi diversified business. An important objective of a strategic audit is to ensure that the business portfolio is properly balanced and those business units or products requiring investment or management attention are identified. A business needs to invest in a growth sector with good returns while “ milking” a dying business, one usually with adequate returns over the short term but with little or any upside growth potential. Like most Strategists, I use two analytical models in a case such as this: - The Boston Consulting Groups Portfolio Box and - The McKinsey/GE Growth Share Matrix ( examples follow and templates are included for your use)

(5) SWOT Analysis:

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is an important tool for quickly plotting your business’ various products or sectors in terms of their rankings and potential. I only use it as a preliminary starting point, but it serves its purpose well. So lets getting going, review the following slides and have some fun working your own strategy… Merry Christmas!

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What`s Up with Your Strategy?

• If you have a strategy, chances are it has changed over time, which is not necessarily a bad thing, but only if it was planned. Is it a living document or on a shelf, long forgotten?

• It`s a new year, time to make corrections and insure your firm maximizes it`s potential.

A successful strategy positions an enterprise and sets out a course of action that directs a company in capturing a competitive advantage that leads to increased profit and shareholder value. Or as I like to think of it …

A successful strategy positions an enterprise and sets out a course of action that directs a company in capturing a competitive advantage that leads to increased

profit and shareholder value.

Turn right on Growth Avenue

Or as I like to think of it ….

Strategy is like a GPS for your business. It shows your position, points out the best way to your

destination and what roads to take to get there.

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My Experience

30+ combined years as an entrepreneur and a corporate executive

6.5 years as an International Vice President with a $6.4 billion global company.

12 years as an entrepreneurial and small business owner developing/managing Strategic Planning and Marketing Services for mid level firms and major Fortune 500 companies.

Now offering a wealth of entrepreneurial and corporate best management practices and experience to startups, small and mid sized enterprises.

Core Competencies: Strategic Planning, International & Domestic Sales & Marketing, Senior Management, Exports, Branding, Packaging & Design, Social Media, Promotion, Communications, Marketing Research, P.R., Traditional Advertising, Sales Trainer.

A professionally trained “Sales and Sales Manager Trainer” (Xerox Professional Selling Skills).

Strategic Planner, Mergers & Acquisitions, Director of Marketing, Campbell Soup Company.

Strategic Planning, General Manager Ketchup and Tomato Products - H. J Heinz Co. Ltd..

Vice President of International Marketing McCain Foods - 79 countries 5 continents Strategic Planning, Exports, Sales & Marketing for Retail, Foodservice, Wholesale and Fast Food - Managing Major International Accounts in Russia, S.E Asia, Middle East, Dubai, India, Philippines, South & Central America, Caribbean, Eastern Europe, McDonald's, KFC, TGIF, Burger King, Wendy’s, Jolly Bee ( Philippines) Pollo Camparo (Central America) plus local country and regional chains, distributors and country Retail, Foodservice and Wholesale businesses.

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How I Might Help

• An entrepreneur, I founded and successfully managed a small business for 12 years. I have been in your shoes and know first hand what it takes to meet a monthly payroll, grow a business, engage and keep customers happy and work full out to keep all the balls in the air.

• I am not a consultant, for lack of a better word, I am a “doer”. I work with owners of start ups, small and mid sized companies and their teams to define a strategy that best fits their business needs and meets their objectives for growth and increased profitability.

• As well as hard data based on company, industry and research findings, I work with the owner and also involve the company’s managers because of their first hand experience and insights; but even more significantly, because it fosters a sense of ownership.

• In other words, less chance for the plan to sit on the shelf and a much greater likelihood for the team to commit to a strategy that is theirs.

• Here is the kicker. When the plan is completed, I don’t disappear. I continue to work with the owner and his/her team to insure the strategy is properly engaged and executed.

• Here`s how it works*…

* The following illustrates a shorten version of the complete process (NOTE “ It is best to have an

outside “ neutral “ and experienced facilitator lead the process.

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The work is comprised of 3 phases: strategic insight, strategic enabling, and strategic design

• Key activities are developed based on fact-based research, industry and company data and in conjunction with several members of your team.

Strategic Insight: These components

influence the key strategic decisions necessary for developing the business/marketing elements

Quantitative Research (customer, industry, sector, economic, interviews)

Strategic Business Assessment (SBA)

Stakeholder Discussions

Business Plans

Vision Statement

Corporate and Brand Positioning

Brand Architecture and Brand Story

Corp. and Brand Messaging Architecture

Corporate Name

Corporate Logo

Packaging or Service Architecture

Packaging Design

Strategic Design Elements: These are

key elements which leverage the insight and enabling elements

Strategic Enabling: These elements

influence ongoing decision making and focus key business and brand/service decisions.



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Strategic Brand Assessment

• A strategic brand assessment provides a comprehensive and an unbiased look at the current state of the company, its industry and its clients and customers.

• The process forces us to face the reality of our present position while identifying opportunities current and potential, reevaluating our existing direction and correcting for a future course.

• The insights gained from the SBA process form the foundation for the development of the brand or your service essentials, the basis from which all brand elements are derived.

• Answers

– What do we know about our target customer?

– How do we interact with them and meet their needs?

– What are the targets greatest challenges, and what USP*

can or do we offer that meets these needs?

* USP Unique Selling Proposition

SBA PROCESS



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• Evaluation of competition, market: size, growth and segmentation.

• Assessment of shipment and sales data, as well as marketing, demographic and economic inputs.

• Use of managerial techniques in order to identify/quantify factors impacting your products, business and the overall market.

QUANTITATIVE IN-PUTS



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BCG matrix, products are classified into four business types: Stars are leaders in high growth markets. Stars grow rapidly and therefore use large amounts of cash. Stars also have a high market share and therefore generate large amounts of cash. Over time, the growth of a product will slow. So, if a Star maintains a high market share, it eventually becomes a Cash Cow. If not, it becomes a Dog. Cash Cows are highly profitable, and require low investment because they are market leaders in a low-growth market. Growth is slow and therefore cash use is low, and market share is high and therefore cash generation is high. Money generated from cash cows is used to pay dividends, interest, and overheads, and to develop Stars and Question Marks. Question Marks are the real cash traps and gambles. Question Marks grow rapidly and therefore use large amounts of cash. However, they do not have a dominant market position and hence do not generate much cash. Dogs generate very little cash because of their low market share in a low growth market. BCG refers to these products as cash traps. Although they may be sold profitably in the market, Dogs are net cash users and BCG indicates that, in terms contributing to growth, they are essentially worthless

The BCG Matrix classifies Products

According to 4 business types

Stars are leaders in high growth markets. Stars grow rapidly and - use large amounts of cash. - also generate large amounts of cash. Cash Cows are highly profitable, and require low investment -market leaders in a low-growth market. - money to develop Stars & Question Marks Question Marks are the real cash traps and a gamble. -grow rapidly and therefore use large amounts of cash. Dogs generate very little cash - low market share in a low growth market. - these products as cash traps. - Dogs are net cash users and BCG

indicates that, in terms contributing to growth, they are essentially worthless

BCG Matrix



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The McKinsey / General Electric Matrix

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The McKinsey / General

Electric Matrix

The McKinsey/GE Matrix overcomes a number of the disadvantages of the BCG Box.

MARKET ATTRACTIVENESS replaces market growth as the dimension of industry attractive-ness, and includes a broader range of factors other than just the market growth rate. COMPETITIVE STRENGTH replaces market share as the dimension by which the competitive position of each SBU is assessed.

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Competitive Analyses

• Positioning and your competitive stance will reflect how your Strategic Plan fits with the market and your competitors

• based on hard data, competitive insights and market statistics.



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Key Industry Success Factors

Weighting Competitor #1 Rating

Competitor #1

Weighted

Competitor #2 Rating

Competitor #2

Weighted

Extensive distribution

.4 4 1.6 6 2.4

Customer focus

.3 4 1.2 5 1.5

Economies of scale

.2 4 .8 3 .6

Product innovation

.1 8 .8 3 .3

Totals 1.0 20 4.4 17 4.8

Competitor #1 is currently the market leader, but when weighted by the most important factors for success, Competitor #2 is potentially the stronger.

If Competitor #2 scales up and/or innovates they will easily overtake #1 The elephant in the room … how does your company rate? What are your strengths and challenges; what action has to be taken?

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What Charting the Competition Can Reveal

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PROCESS RECAP

Identify Risks Research, Discussions, and Management techniques to Evaluate Brand, Company Competition and the Market

Quantify Risks & Opportunities Define a Vision & Strategy, Develop Marketing Plan, Develop Promotion and Communications action plan

Monitor & Adjust Track shipments, sales and Market Share, monitor competition. Elicit feed back Evaluate results vs. targets, Make adjustments and make improvements.

Execute Plan Go to Market: Marketing, Advertising and Sales Plan, Launch new products and/or services , Open new market or market sector(s).



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But lets face it, at the end of the day no matter how it’s packaged,

no matter your education, background or past successes,

business comes down to only one thing – results!

This is where we excel. Add Impaq to Your Business! No project too small

You can Contact me through. Boomer Match to Business at

[email protected] and inserting

"Question for Carl" in the subject line. The use this material is free, provided that copyright, acknowledgment and reference by link to [email protected] is provided by you in using all or any

portion of the forgoing. This material may not be sold, but may be republished with written permission from Impaq Marketing & Communications Inc. Disclaimer:

Reliance on information, material, advice, as received herein, shall be at your sole risk, and Carl Cassidy and Impaq Marketing & Communications Inc. assume

no responsibility for any errors, omissions, or damages arising. Users of this material are encouraged to confirm information received with other sources, and to

seek qualified advice if embarking on any action(s) that could potentially carry personal or organizational liabilities. Managing people and relationships are

sensitive endeavors; the free material and advice available via this material do not provide all necessary safeguards and checks. Please retain this notice on all

copies.

© Impaq Marketing & Communications Inc.

Your Business!

Contact Us

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mailto:[email protected]

mailto:[email protected]


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BUSINESS OR PRODUCT

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MEDIUM

LOW HIGH MEDIUM

LOW

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Key Industry Success Factors

Weighting Competitor #1 Rating

Competitor #1

Weighted

Competitor #2 Rating

Competitor #2

Weighted

Extensive distribution

.4 1.6 6 2.4

Customer focus

.3 4 1.2 5 1.5

Economies of scale

.2 4 .8 3 .6

Product innovation

.1 8 .8 3 .3

Totals 1.0 20 4.4 17 4.8

Competitor 1 Competitor 2 Competitor 3 The Market Our Company

Competitive Ranking

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