Strategic Thought From  Mike Perry

11^th March 2010

The recession is over!

Start changing the rules of the game ...

... but proceed with care during the next 24 month period.  Anticipate misleading events such as a good quarter followed by bad.  Be patient in a market that declined 30% in volume in the downswing will take 2 years of 20% compound growth to return to previous volumes. 

At this time, however, it’s a good move to take any savings above budget, or proceeds of better than expected quarters, and invest these in developing the game-changing Big Idea.

 Pacing the introduction of new initiatives is a fine art.

Strategic Thought From  Mike Perry

20^th January 2010

Move like a world champion!

Anticipation of a successful World Cup Tournament suggests that customers will expect your marketing to be bright, breezy and innovative – in tune with the mood.

Innovations must focus on customers’ real needs – most are living with reduced demand and tighter credit, so 2010 is the year to come up with “financially wrapped” value propositions.

Stay alert to danger; financial markets have out-accelerated real business conditions (we remain in the economic valley) and another bubble may burst.  Be prepared for sudden negative swings in expectations – have Plan B in place in case the mood changes …

… that way you won’t get caught off-side!

Strategic Thought From  Mike Perry

20th November 2009

Pricing strategy vs. more cost cutting

Liken today’s phase of the business cycle to living in an economic valley.  Your market may have stopped declining but probably won’t immediately return to the peak of 2006/7. The professional marketer’s task is to grow revenue, even as volumes remain static; the question arises how to increase ‘’share of wallet’’?

Fighting for market share on price is likely to precipitate destruction of value, so scientifically examine how customers react to pricing strategies. A 1% revenue gain through pricing may be equivalent to a further cost reduction of 8-10%.

That’s how marketers save jobs!

Strategic Thought From  Mike Perry

1st October 2009

Forget the Economists, Focus on the Road Ahead:

Understand how the economy will affect your business quarter by quarter over the next few years by creating a simple “What If?” scenario that draws on the average length, historically, of each phase of the economic cycles.

The USA economy peaked in December 2007 and moved into a precipitous decline.  Most South African industries followed 10 months later; each phase of the USA economic cycles (since 1945) has been peak to trough 10 months; trough to peak 47 months and time in trough, 20 months

This picture is a framework of what’s to come, preparing management for the inevitable.

Be alert to the next scenario phase!