Thursday, October 29, 2009
Thursday, October 15, 2009
Many companies in many countries have very strong reasons to pursue the strategies shaped by their analytics. Virtually all companies which are leaders in their respective arenas are aggressive analytics competitors and much of their success can be attributed to masterful exploitation of data. Rising global competition intensifies the need of this sort of proficiency. For example, western companies unable to beat the competition from their Chinese and Indian counterparts on product cost, are seeking the upper hand through optimized business process.
Companies now just embracing such strategies, however, will find that they take several years to come to fruition. For example, many companies in credit cards business find that they need several years of times before their strategy actually starts to work. They need to make process changes in virtually every aspect of their consumer business: underwriting risk, setting credit limits, servicing accounts, cross selling etc. These firms need to keep their managers in their jobs for longer periods because of time required to master quantitative approaches to their businesses.
Even if you talk about, politics, there are ample reasons to believe that success of political parties is largely dependent on the analytics of the data they gather regarding voter perception now a days. Democrats in US carried out extensive analysis of, what the US voter is mostly worried about: financial and physical health but not Iraq war!!
Bohemian companies in the investment world are purely competing on their strengths of their analytics. Today, competing on analytics is the new science of winning. More than ever before, business decisions have multimillion-dollar impact and multiyear consequences.
Saturday, October 10, 2009
The research shows, when forming a decision about buying a product or service from a particular company or organization, 83% of the general public feel it is ‘very’ or ‘fairly important’ that a company shows a high degree of social responsibility. Social issues, such as climate change, corruption, election, healthcare and education add to the mix of changes in the expectation of general public. Clearly marketing can ignore these changes in the business and consumer environment, but it does so at its peril.
Consumers not only vote with their feet and their purse against companies and brands they disapprove of, but evidence shows they will also actively change their behavior in favor of those companies of which they approve. In the past, positive differentiation in price, quality and functionality was what was required for success. This is no longer enough and barely noticeable in many sectors anyway. Often, depending on the sector, price, functionality and quality can be replicated – perhaps within weeks or a month, maybe a year – but they are no longer the tools that will maintain differentiation in the longer run.
Emotional engagement and values, on the other hand, are much harder to develop, much harder to replicate and, once established, much more embedded and harder to shift. Investing in values and a ‘bank of goodwill’ can therefore pay dividends. As brand management evolves, values are becoming the key differentiator. The question is does it work? Does taking such a values-led/cause-led approach deliver bottom-line benefits?
The answer is yes. Marketing related to a cause, if done sincerely and executed well, provides a win-win-win. A win for the business, a win for the cause issues or charity and a win for society. One of most successful Cause-related marketing (CRM) programs run by P&G is a partnership between Pampers and UNICEF. Here for every pack of Pampers that a consumer buys, we contribute 1 tetanus vaccine to developing countries. The collaboration has helped raise awareness for the need for tetanus vaccines in developing countries as well as reassured consumers that we have partners with the requisite expertise to execute this. Further, the UNICEF association underlines Pampers equity as a brand that cares about babies. Take the case of Tata Tea, it’s Jago Re campaign started last year with educating citizens regarding realizing their voting power. And it has started a corruption oriented campaign now a day. And Tata Tea has been benefited in the similar lines.
Cause marketing leaders recognize that business and society are linked, and therefore have a unique challenge and opportunity to make a positive impact on society, while also boosting short-term sales, long-term reputation gains and stakeholder loyalty.
Cause-related marketing is a strategy whose time has come. Links with social issues, if made sincerely and professionally, will reap rewards. Do it badly and the consequences could be disastrous, but do it well and success will follow.