Generic Strategy for Increasing Sales from Kenichi Ohmae

TO    :    All CMO Marketing Staff

Subject:   Generic Strategy for Increasing Sales

We discussed today marketing and the problem of low sales in your SBU.  All that we could mention as causes are:

       1.  Hindi po tapos ang development;

       2.  Wala pa pong promos;  naghihintay ang customers/prospects ng promo/ low d/p.

      3.  Kulang kami ng tao;

      4.  Kulang kami ng gamit;  

      and so many other alibis.

We found out, that entrepreneurial marketing in the communications site is not even read by the staff;  in the CSS presentation, most of presentations were copy paste (it is a crime) and we lack the knowledge on strategies on how to increase sales...

From Kenichi Ohmae, mind of the strategies, there is a long list of generic strategies on what you we can do to increase sales.

1.  Starting point:

      Sales

      -Cost

    GP

     1.  Our goal is to increase sales always and reduce cost

     2.  A simple +5% increase in SP, and -5% decrease in cost can result in dramatic increase in profitability.  Thus it pays to be frugal and thrifty.   Also, reduction in cost is a reverse marketing;    You do not need to sell more for the amount you saved.  Customers always want value for their money and thus want discounts and reduced prices.

        Say:                              5% increase in SP, 5% decrease in CGS

        SP    -     100                105

        CGS         80                  75

        GP            20                  30

        GP is up to 30 or 50% with mere +5% and -5% cost.

2.   Increasing sales:

     1.  Increase in selling  prices -   to be pegged to inflation rate.  Customers will understand that the cost of inputs:  labor, gas, utilities go up.

     2.  Increase in the number of units sold:

          1.  Increase in market coverage - selling more in unserved territories or catchment area.   eg putting up more outlets and branches

          2.  Increase in sales force (sellers and channels)

               on line sales

               wholesalers

               resellers

         3.  Increase in the number of product offerings:

              variants  -  sizes, sache

              new products by r & d and innovation

              Innovation new features can add to 2.1

        4.  Additional expenditures for marketing

            ads and promos  (discounts, coupons and POS display)

            commissions

            events

            prizes for sellers

       5.  Market segmentation

            New product for a particular segment

    3.  Increasing value added for the product:

          new uses for the product (based on how the customer use the product) 

          e.g Listerine used to be a product to treat athletes foot of combatants.  After the war, the Listerine people marketed Listerine as mouthwash.   As Betadine,  which was before and antiseptic was remarketed as feminine wash

         adding features for the product:  (as 2 in 1)

             CP with wifi, blue tooth, talk and text and tv

             ref with ice maker

Think of these strategy on how you can apply this to your sbu

Jorge  U. Saguinsin

The Holy Gardens Group - "THE MEMORIAL EXPERTS"

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