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How to Become Much Stronger During a Crisis

On 22 April, we held a business breakfast “How to Become Much Stronger During a Crisis”. We gathered marketing managers of the biggest companies of the country and CEOs of the medium business to determine how it is possible to become much stronger during a crisis. Search for decisions for different companies lasted for a few hours but the key success factors turned out to be general for everybody:

 

Optimization (spend less, earn more)

Most CEOs understand optimization as shortening of budgets but it is only a part of a decision. It is necessary to shorten something which is unprofitable and/or doesn’t bring additional economic value. Something that can give a better result in terms of increasing resources must be used efficiently. This is exactly what is called optimization. I recommend you take a look at the example of Samsung Company in a presentation (see below).

 

Outsourcing of non-core functions

Taking into account technology development is it worth wasting resources for such assets as a big office, abundant number of employees who perform the same functions or is it more beneficial to concentrate on the main field-oriented function and the rest to give for outsourcing? The answer is obvious if you have an efficient and attractive offer. Outsourcing has already become a standard in a range of industries (accounting, law, IT), next is human resources and marketing.

 

Orientation to value added goods

During a crisis you don’t have money to deal with unbeneficial goods. Moreover, old and checked low-margin goods with increasing speed drive your business to grave. It is high time you developed goods with maximum profit, prepare award fee offers and earned more. The cases of 2014 from the brands “Zlatogor” and “Zhytomir Meat Guild” confirmed that the value added goods increased sales and were becoming growth drivers of the company.

 

Entrance to the foreign markets

The foreign markets are the ocean of opportunities. And the time has come for many companies to use these opportunities becoming regional and in some cases even global leaders. You need to be confident in success for such decisions, know exactly what strengths will bring your product to the first positions.

 

We discussed a lot of important issues at this event:

 

  • Sales decline of the current assortment
  • Customer retention and attraction of the new ones
  • Marginality decrease
  • Lack of confidence to an Ukrainian product
  • Low qualification of sales/marketing managers
  • Damping and unfair competition
  • Low responsibility of the suppliers
  • Unwillingness of the senior executives to invest in marketing
  • Decrease of purchasing power
  • Activation of substitute goods (consumers switch to another category)
  • Refusal of purchase because of the psychological factor
  • Increase in taxes (excise tax)
  • Instability because of the anti-terrorist operation
  • Lack of money for development
  • Foreclosure of the external current markets
  • Lack of information about foreign markets
  • High barriers for entering the external markets
How to Research a Developing Market

Whatever situation the economy would be in on the whole, always there are industries that show growth in tens of percent. The e-commerce and connected with it services (through substitution traditional methods of trading by faster and cheaper ones), electronic services for business and people (similarly substituting newspapers, guidebooks and sometimes the whole service industries) have become such sectors now. New technologies change a way of consumption of common products and redirect substantial financial flows for themselves. Furthermore, new markets appear and are formed with great growth opportunities and high income.

 

One of the most important questions arises in such markets in front of the analysts and top managers from which directly depends a destiny of their company:

 

Where is a border of the market growth? When will the market become mature and stop growing at a swift rate?

 

The solution to this question is wrong because:

 

  • There is no unified statistics in a new market (still nobody counts it and it isn’t downloaded from the current databases)
  • A market dynamic is big enough (growth in tens of percent attracts new players and capital to the market that increases growth rate)
  • The amount of data inside of the company is permanently growing, databases are not structured and it is difficult to outline the important factors out of them

 

What do I offer to do in such a situation?

 

  1. To study the models of market development in similar countries, having determined volumes, dynamics and factors influencing the market development and changes of its structure.
  2. To develop a model of the market development in Ukraine, being based on the experience of other countries but with changes according to the level of development and plans of consuming by the target audience in our country.
  3. To identify the limits of market growth on the basis of the product lifecycle and percentage of the consumers in types (innovators, followers, majority, laggards).

 

The indicators will be different for each market but an approach works for all new markets with innovative products. 

I wish you to realize your opportunities for leadership and increasing the income!