Strategies can make or break an organisation. Typically most organisations run a strategy development process every 3-5 years, the outcome of which will determine how resource is allocated, what big bets to go after, and what the shape of the organisation will be at the end. However there are also many common pitfalls:
- The strategy is weak. Unclear goals, targets, and roles could lead to confusion and lack of progress
- The strategy stretches resources too thin. This could lead to achieving less than an organisation is capable of
- There is a lack of understanding. A good strategy should always be easily explained, to those who will be responsible for executing it
- It doesn't "connect the dots". For example, having a channel strategy and a brand strategy that don't speak to each other will only lead to confusion and wasted opportunity
Below are some examples of strategies we can help you to develop:
An effective commercial strategy defines what you want to achieve, which levers you will use to achieve it, and how you will organise yourself to execute it. It should contain a long-term view of your targets, and speak to both your customer and product segmentation. Commercial strategies pull together brand, price, customer, sales, and organisational plans together to provide a clear and actionable direction for your commercial functions to execute. Read an example approach here.
Effective pricing strategies can deliver top and bottom line growth. However many organisations fall into the trap of tactical pricing decision making, guided by knee-jerk reactions, instead of considering the long-term behavioural science behind pricing. A pricing strategy needs to deliver the right market positioning for your brand and product, as well as delivering the P&L you want.
Whilst promotions are a sub-set of pricing, the lever can often be the primary one for concern, particularly in heavily commoditised markets. An effective promotions strategy works with an organisations wider pricing strategy, and plays off the need to anchor to price points with the inevitable pressures of cost increases.
Products within a portfolio can cannibalise each other as well as be complimentary. A portfolio strategy identifies how to organise your products in such a way to maximise the potential of achieving your long-term goals.
Cost price increase (CPI) strategy
Most manufacturers and retailers now face into CPI pressures on an annual basis. An effective CPI strategy plays off the market prediction of where cost pressures will come from with how competitors will react, and how an organisation can pass on CPI most effectively.
Complexity in range, supply chain, and marketing can often lead to inefficiencies, and confusing market messages. Range/assortment rationalisation addresses these issues by focusing effort on the products/services that will deliver the most value in the long-term.
Business case development
Already know your strategy but need help selling it to the wider business? Building a compelling business case can not only help to get your project over the line, it can also help to ensure key functions and individuals execute your strategy effectively, and provide clear go/no go scenarios to hold the organisation accountable to.