Tag Archives: strategy

Winning at Omnichannel Marketing: A Video Overview

19 Apr

Check out this video and paper on omnichannel marketing from BRP and Radial:

“Today’s customer is always connected and always on. Digital and mobile commerce have elevated consumer expectations of the shopping experience. She expects service anytime, anywhere, and any way she wants it. Marketers realize they need a different approach to enable a unified experience, one supporting the convergence of digital and physical worlds.”

“A unified commerce platform becomes a single consolidation point for all transactions, inventory, pricing, order management, CRM, call center, etc. This platform provides a single version of the truth across all channels to enable transparency, or the ‘glass pipeline’ of real-time visibility to inventory, product, and customer information. This is the nirvana, or end-state, that many marketers are trying to achieve with their customer experience and unified commerce goals. By moving the heart of the transaction, merchandising, and fulfillment activities to a centralized platform, marketers can allow their digital commerce applications to be more innovative and agile. This enables marketers to utilize their digital commerce offerings to contribute to the personal, ubiquitous, and unified experience that customers expect.”

 

 

McDonald’s Honest Self-Assessment – in Public!

7 Mar

McDonald’s is revamping its global strategy in hopes of stimulating sales and profits. Some of its planned changes are substantial. And, it has offered an honest self-assessment in a very public way. [Many firms do not even acknowledge their weaknesses outside of the company itself.]

Just a few days ago, the fast-food giant issued a major press release, “McDonald’s Unveils New Global Growth Plan.” Here are some highlights:

“The growth plan focuses on enhancing digital capabilities and the use of technology to dramatically elevate the customer experience; redefining customer convenience through delivery; accelerating deployment of ‘Experience of the Future’ restaurants in the U.S.; initiating a new 3-year target for cash return to shareholders; and establishing new financial targets for sales, operating margin, earnings per share, and return on incremental invested capital.”

“The strategy connects key tenets of the brand to well-defined customer groups built around three pillars: (1) Retaining existing customers by fortifying and extending our areas of strength. Through a renewed focus on areas such as family occasions and food-led breakfast and transforming the experience in our restaurants, McDonald’s will build on the strong foothold it has and grow the core of the business. (2) Regaining customers lost to other QSR [quick-service restaurants] competitors. As customers’ expectations increased, McDonald’s simply didn’t keep pace with them. Making meaningful improvements in quality, convenience, and value will win back some of McDonald’s best customers. (3) “Converting casual customers to committed customers by being more present in underdeveloped categories and occasions and competing more aggressively given the untapped demand for McCafé coffee and other snack offerings.”

“We have fundamentally changed the trajectory of our business over the past two years. Now, we are ready to build on our momentum and transition to focus efforts on profitable, long-term growth. We are building a better McDonald’s, one that makes delicious feel good moments easy for everyone, and the moves we are making will reassert McDonald’s as the global leader in the informal eating out category.”

“To bring customers into the restaurants, McDonald’s must matter to people and be relevant in their daily lives. To do so, McDonald’s is accelerating digital capabilities and enhancing its use of technology in restaurants, in the drive-thru, and on the go. The result is a more stress-free, personalized experience, enhanced by technology and world-class hospitality that puts customers in control.”

“One of the most significant disruptions in the restaurant business today is the rapid increase in delivery . Because of our extraordinary footprint, McDonald’s is uniquely positioned to become the global leader in delivery. In McDonald’s top five markets (U.S., France, the U.K., Germany, and Canada), nearly 75% of the population lives within three miles of a McDonald’s. Currently, McDonald’s is experimenting with different delivery models including partnering with third parties for ordering and fulfillment throughout the world.”

“Experience of the Future restaurants elevate the customer experience at McDonald’s to provide a more convenient, more personalized, and more enjoyable visit. It leverages the convenience and technology of kiosk ordering and table service, increasing functionality of the mobile app to enhance the enjoyment of our food and the hospitality of the McDonald’s crew, all in a more modern, more exciting restaurant environment.”

 
Click the image to read A LOT MORE!

 

Ma and Chenault: An Interview with 7 Major Points

18 Jul

Jack Ma, who started life with very little, is now one of the richest people in the world. He is the  founder and executive chairman of retail behemoth Alibaba Group, which generates hundreds of billions of dollars each year.

In an interview with Kenneth Chenault,  chairman and chief executive officer of American Express, Ma enumerated seven key points. These points are valuable to those at any point in their careers:

  1. Rejection comes with benefits. “When Ma graduated university, he applied to 30 different large companies — and no one would hire him.  So, he started a translation agency, earning $50 his first month. Years later, in 1999, he gathered 17 investors in his apartment, explaining to them his vision to use the Internet to help small-business owners sell. With $50,000, they started Alibaba.”
  2. Get your business global. “Innovative products and services bring those small and medium-size companies to China. I would say China, in the next 20 years, will become the largest importer country in the world because China’s resources can never support such huge demand.”
  3. Don’t wait to innovate. Ma said: “Repair the roof while there is still sunshine. “When the company is good, change the company. When the company is in trouble, be careful. Don’t move. Just like if the storm comes, don’t go up and repair the roof.”
  4. Learn from the failures of others. “For Ma, it’s the mistakes that business owners should really learn from. ‘A lot of people fail for the same reason. If you know why people fail and you learn [from] that, you can make a correction.'”
  5. Be passionate. “If you’re just in the business for money, you’re going about it wrong. Ma and Chenault both emphasized the need for passion in what you do, and agreed that that fervor is a hallmark of successful small-business owners.”
  6. Customers come first. Ma said: “The ones supporting you are not the shareholders. Not government. It’s the customers, the people, the employees. Focus on the customer. Focus on making employees happy. And focus on integrity to everything you’re committed. That is the only thing.”
  7. Help build strong leaders. “If a business is to continue after the owner has moved on, the younger generations must understand and embrace its vision and values. ‘Give them the chance to make mistakes. Listen to them. Respect them,’ said Ma.”

 
Click the AP Photography image to read more.
 

 

The Impact of an Industry’s Life Cycle on a Company

4 May

This post is a nice complement to our discussion about Apple’s recent performance. How much do industry life cycles affect firms in those industries?

Consider these remarks from , Contributing Writer, SmallBizTrends.com:

“Every industry goes through a life cycle that begins at the startup phase — that is, when the industry first comes into existence. Obviously, some industries’ startup phase was decades or even centuries ago, such as homebuilding or restaurants. However, even within those types of industries, there are special niches that can continually come into existence — think of them as sub-industries. For example, while homebuilding as a business has been around for centuries, environmentally friendly homebuilding using reclaimed or recycled materials and solar energy is a relatively new niche within that industry.”

“Next can come a phase of rapid growth. Inspired by the success of industry pioneers, other entrepreneurs may follow suit and launch companies in that field. Eventually, the industry reaches maturity. It may not be brand new and exciting anymore, but it can also offer stability and a good chance for business success.”

 
According to Lesonsky, there are three types of industry decline:

Rapid Decline. “Often this is precipitated by some drastic event, or combination of events — such as the way the travel industry, and in particular travel agencies, declined after 9/11. At the same time, the growth of online travel search and booking sites helped those who needed to travel to book their own plans without an agent.”

Slow Decline. “Slow declines can be the most common type of industry transformation. They can occur for many reasons, including a change in target market demographics or attitudes, new inventions or technology, or dwindling resources that the industry needs. Print publishing is an industry in slow decline: Although print magazines and newspapers still exist, online publishing, which costs less and is more accessible, has made print less profitable.”

Reinvention. “Sometimes an industry starts to decline, then reinvents itself, leading to a new lease on life — and new opportunities for profits. TV broadcasting is reinventing itself after a slow decline due to the popularity of online video and streaming services. Traditional broadcast networks are joining the game by offering at least some of their content to these services.”

 
Click on the image to learn more.


 

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