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25/06/2020

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08/10/2018

CNN's Rachel Crane goes inside Amazon HQ to see how Amazon uses AI to improve customer experiences, from cashier-less stores to Alexa's new tricks.

10/07/2018

Marketing successfully in a downturn by reorganizing your product portfolio against new market segmentation

Recession brings a host of business challenges. First, customers lose confidence and begin to reduce their spending. Buying less, switching brands, or postponing purchases of non-essential things are some of the tactics customers adapt to adjust to the new economic reality. Companies respond by cutting marketing budgets, reducing the price, reducing staff, and this finally drives down revenue and performance. These reactive decisions create an unhealthy situation in which both customers and companies equally loose. Customers lose out on getting better value for their money and companies to lose out on creating new opportunities to generate revenue.

One way, companies can sustain their business is by reorganizing their product portfolio in such a way that their offering creates value addition to customers who are looking for ways to save money. Companies that develop one size fit all promotion and deals, stand to lose heavily, as their offers do not address the value challenge customers are looking for.

During downturn, new customer segmentation begins to emerge. This is based on the confidence a segment has about the now and the future, and how they reorganize their priorities in the face of tough economic challenges. John Quelch, former dean of Harvard Business School identified four customer segments during the recession in 2007.

The first segment; begin to cut spending drastically, as the main earning member might have lost their job, or have to take a new job at a much lower remuneration. They are highly priced sensitive even for essential items and are guided by how much they are saving on each purchase. They are driven by deals offering price cuts, alternate brands at lower price points and stores that give massive discounts on total spend. Companies creating essential products to this segment have to think of introducing smaller packs at lower prices, fewer features at lower prices or introduce a new fighter brand that is lower in price than their regular brand. Deals that give them benefit only after a certain time might not work well with them.

The second segment, while not as price sensitive like the first, begins to look at savings from buying more at lower prices. They are driven by deals that give them more quantity for lower prices. Companies catering to this segment have to create value by introducing deals such as buy two for the price of one, or having two products that are complementary at reduced prices, or by the second unit at a reduced price.

The third segment, are more comfortable than the first two and are not affected directly by the financial meltdown. However, they are not very confident about the prospects of a sudden economic recovery or growth and are therefore cautious about their spending. While they do not cut down on their essentials, they try to get the best deals on high-value purchases such as electronics, home appliances, or even automobiles. Lowering the cost of ownership and maximizing their long-term benefits chiefly drives their purchase decision. Companies catering to this segment have to create value for them by reducing the cost of ownership such as giving free services, add-on features at reduced prices, upsell at lower prices among others.

The last segment is not affected by downturn and has enough funds to sail smoothly through the financial crunch. While they do not cut on essentials or are not driven by the lowered cost of ownership, they are quite aware of the market situation and know that they can get a bargain for things they purchase. Companies catering to this segment should create value by helping them maximize satisfaction they get out of their purchase. Offers that continue to create long-term value such as a club membership along with the purchase of a high-value purchase, premium access to elite sports tournament or stage plays etc. are some of the tactics companies that cater to this segment can use.

Companies that create value for customers by reorganizing their product portfolio against carefully selected customer segments that emerge during the market downturn will continue to drive revenues. Their brands will become stronger and once the market starts to recover, their brands will take a larger share than companies that continue to operate their business by opting for reactive tactics to get through downturn.

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13/04/2017

In today’s increasingly competitive business environment, having a solid business plan, financial information, feasibility study, and marketing strategy can make all the difference between success and failure. Throughout the world, an increasing number of firms from all sectors are looking towards strategic planning and resource management in order to bring dynamic energy into the work environment. This method is the only way to ensure long term growth and continued growth in different markets without having to restart work on projects from square one every few months.

How Strategic Planning Can Help:

Here are some of the ways that strategic planning for your business can help you along the road to success:

1. Detailed Analysis:

This is perhaps the most important component that can determine the success or failure of your small or medium enterprise. Through detailed analysis, you will be able to better understand market trends, consumer behavior, supply chain management skills, and more. This will help you fully understand your own position in the market and determine the best course of action for the future.

2. Financial Planning:

When it comes to starting your own business or turning the ship around at your existing one, there is no doubt a solid financial plan is a must. This includes a detailed report on expenses estimated for the entire year of operations, including startup expenses, salaries, and other miscellaneous expenditures. Through realistic market modeling and real sales figures, out financial information is able to serve your overall mission better and help identify possible roadblocks well before they happen.

3. Feasibility Plan:

In order to determine the viability of your business idea, it is vital to do a complete feasibility analysis before you invest. The purpose of a feasibility plan is to simply determine whether or not to proceed with a certain idea, which could be a new product line, a range of services, or an entire business. A feasibility study is based on risk analysis, long term performance, existing and projected cash flow, profit share, and possible alternatives through a discussion of different scenarios. This can help you better organize your own business in order to improve efficiency and increase profitability.

4. Marketing Strategy:

There is no time like the present to highlight the importance of marketing. In recent years, digital marketing and branding has taken the world by storm, and with more consumers than ever being reached through online advertising, it is high time to invest in a brand new marketing strategy. This will undoubtedly help increase your client base, lend credibility to your operations, and help you interact directly with customers.

Conclusion:

Having your own business flourish is the dream of every entrepreneur. Whether you started out from scratch or just took the lead role at your family owned business, it is imperative that you do a complete analysis in order to identify shortcomings, improve profitability, and drive future growth. We here at Hiring a professional consultant or consulting service at the right time can help you a great deal with your business plan, conduct a feasibility study, put a financial plan in place, and develop a marketing strategy in line with the latest market trends.

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