Deliver or Else!

Seems obvious.  But how many companies do not deliver a product which truly meets or exceeds customer expectations?  Can you imagine what would happen to a Company which exceeded customer expectations on every dimension?  Talk about people lining up at the door to buy!

So, how can you ensure that you  will exceed customer expectations?  First, do not over promise or promise things you cannot deliver.  Make sure what you “advertise” is what you deliver.  Second, provide something unexpected with your product.  Something that has an added benefit that your customers do not expect.  Finally, follow-up to be sure your customers are more then satisfied with your product  (obviously this is only feasible with higher priced items).

So, the message is simple… Deliver or else!  To sustain and grow your business, provide your customers with more then they expect!

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Chrysler

Here is a little advice for the new management at Chrysler…  Tell consumers why they should buy your products versus the competition. 

Frankly, I am stunned at auto advertising.  There does not seem to be clear differentiation between cars.  Why is one car better then another?  How is it really different?  Bottom  line, why should consumers pick Chrysler products over others?  Everyone says their cars are better engineered, safer, better looking, faster, with nicer and more roomy interiors.  So why are Chrysler products really better?  What sustainable points of difference exist that will convince consumers that Chrysler cars are better?

Admittedly, this is not an easy problem to solve in any category.  Yet, without a solution I believe Chrysler will eventually fail.

What’s your opinion?

Rich

Bizvice:  Business Strategy, Entrepreneurship & Marketing

I’m Back!

I am back and I have learned a thing or two about service in the medical area.  I was at the Mayo Clinic for 7 weeks including about 3 weeks in the hospital.  I wish all hospitals and medical facilities would take a lesson from the Mayo.  Admittedly, I have not been to many health facilities, but it seems to me that the Mayo is the “model” of patient care and efficiency.  Much like the Ritz Carlton it is in their DNA!

I also spent some time in a local hospital which has a great reputation.  Frankly, there is no comparison.  It may be the people and how they grew up or it may be the training and philosophies of each organization.  The medical area is not that different from a business… remember the customer is always right and should be the focus of any organization. 

It’s nice to be back and recovering.  I look forward to writing more in the coming weeks.

Rich

Bizvice:  Business Strategy, Entrepreneurship & Marketing

Getting Costs Out Of The Medical System

I am currently at the Mayo Clinic in MN undergoing a stem cell transplant.   Having used the “medical system” both in the US and other countries over the years, I am convinced that there are ways to drive costs down in this system…  and have those cost savings pay for universal health care.   I am not trying to be political.   But, it is clear that our medical system is currently wasteful.  

I have been coming to the Mayo for over 16 years.  They do medical care better then anyone.   And, I believe they have driven costs out of the system better then most.

Given  my current health state, I will be “dark” for a few more weeks…  thanks for reading my posts!

Rich

Bizvice:   Business Strategy, Marketing  and Entrepreneurship

Gas Prices And Differentiation

Everyone wants to know why are gas prices so high?  The “oil industry” says it is all about supply and demand.  Of course if that was the case, then profits should not be at ridiculous levels.   Make no mistake, I am a capitalist and I believe in our economic system.   So, why $3.50 per gallon?   If it is based upon commodity pricing like milk then it does ring true…  but in that environment, the oil Companies are basically charging what the traffic will  bear.

 So, what is the “average” consumer to do?   Try the discount gas stations…. I like Costco or Stop & Shop….  I saw a TV show which says the gas is just as good as the “name brands.”   AND, they are discounted by at least $.20+ per gallon.   This is a classic case of differentiation in the marketplace.  Why pay more for Mobil, Exxon, Amoco, BP?  Especially if the gas is fundamentally the same.  

And, by the way, if the issue is refinery capacity, and better gas milage for our cars why is it taking us so long to figure those things out?   Is this America?

Just one man’s views!

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Chrysler

It is a sad commentary on our times that Chrysler, once a proud American auto company, will be shortly owned by a private capital company.   I believe it is a reflection of our entire auto industry, once dominate the world over and now in many cases second rate.   What happened to this American industry?  Remember the saying as GM goes so goes the American economy?  Is it now as Toyota goes so goes the American economy? 

While America leads in so many areas of technology and innovation, what happened in the auto industry that got us to this point, and, more importantly, what can be done to get this industry on track?    Many people blame the unions and their contracts which call for significant health care and retirement benefits.   Labor costs reported to be $30 more per hour for an American auto worker then their foreign counterparts reflects these and other costs.  But I can’t believe that with American ingenuity we can’t figure out how to be more productive.   I also can’t believe we can not build superior cars.  I am not suggesting this is easy.   I am suggesting that the Chrysler acquisition might be just what the doctor ordered to shake up this industry in the US and get the “big 3″ to really seek dramatic changes in how and what they deliver to the marketplace to compete.

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Brand Management…Can It Survive?

Brand Management has been a fixture in successful marketing companies for decades.  It holds out the promise of individuals managing their “own” businesses as a successful model to manage a large number of products.  It has worked wonderfully.  Just look at companies like  Kraft, P&G, and others.  It also is a terrific way to train people and give them the skills to manage.

Yet, can brand management as we know it continue to survive in the future?   Given the complexities of product development, business strategy, positioning, marketing communications, etc., how can a brand manager keep up?  Staff groups as support have certainly helped many Companies manage this problem in the past.  But, it seems to me the “marketing world” is far more complex today then it was in the 60’s and 70’s.  In addition, there is always a natural “friction” between running a brand in a Company and managing the Company.  Look how many Brands P&G has diversified itself of over the past 10 years… do you really think this was at the suggestion of those brand managers?

So, what does the future of the Brand Management system hold?  Perhaps it is category management?  Perhaps asset management?  Your input and thoughts are welcome!

Rich

Bizvice:  Business Stragegy, Marketing & Entrepreneurship

An Open Invitation

As a thank you to those of you who take the time to read and follow my blog, I would like to make this offer:  Ask me any question related to Business Strategy, Marketing or Entrepreneurship and I will do my best to provide you with an honest answer.  This is an opportunity for you to receive free consulting advice from someone who has been there and done that.  Just give me as many facts as you can surrounding your question and I will give you my best advice!  

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Growth versus Expense Reductions

In the 80’s and 90’s the mantra was expense reductions for companies of all sizes.  That was the way to improve the bottom line.  Those companies that were successful in reducing their expenses did well in the short term.  I emphasise short term!   You cannot be successful in the long term by simply getting expenses in line.   You MUST grow the top line to truly be successful. 

Of course, growing your top line is much harder then cutting expenses.  You must find a way to revitalize existing businesses, find new growth opportunities and explore mergers and acquisitions.  This is hard work!  It is always much easier simply to fire people, close plants or take other measures to cut  expenses.  Yet, if you follow a disciplined approach to growth it reduces complexity and increases your odds for success!

So, how do you approach growth?  It requires a complete analysis of your Company’s strengths and weaknesses, the same for your key competitors, and a customer based needs analysis.  Thus, where need is greatest and your company has strengths and your competition is weak, you will find the best opportunities.  Of course this is the area that needs complete objectivity and a thorough vetting.  That’s where the hard work lies!

Rich

Bizvice:  Business Strategy, Marketing & Entrepreneurship

Strategic Imperatives

Have you ever been confused over establishing priorities for your business.  One way to think about this issue is to establish strategic imperatives.  Essentially, strategic imperatives define what you absolutely must accomplish over a given period of time to be successful.  First, of course, you need to define your overall strategies within the context of your business plan. 

Once that step is accomplished, you must review your entire plan and decide which strategies must be accomplished in order to achieve your objectives.  The word MUST is the operative word.  Clearly when you develop an annual plan every strategy and tactic in that plan has importance.  So, the difficult decisions you must make are what are the most important strategies that must be accomplished.  Without accomplishing those strategies, your plan will clearly fail.

Once you identify your strategic imperatives, then you need to lay out clearly and simply what you must do to accomplish each of those imperatives.  Included should be key dates by which each of these steps must be accomplished.

This exercise will help you stay focused on what you need to do to ensure success in the coming year.

Rich

Bizvice:  Strategy, Marketing & Entrepreneurship