Taking Your Business to the Next Level
Thursday, June 29th, 2006During a discussion about small business marketing, one owner asked me “How do you get big?” In other words, what did he need to do with his marketing to take his business to the next level.
Great question because the marketing you do to take your business from $0 to $100,000 is very different from the marketing you do to take your business to $250,000 or $1,000,000 or $5,000,000.
Let me illustrate with a story.
In the early 1970's shampoos and conditioners that smelled like lemon, strawberry, apple, herbs, and so on, became all the rage. As a teenager, I remember plunking down my hard-earned babysitting money to buy Love's Fresh Lemon shampoo so my hair would smell like fresh squeezed lemons. A small, Chicago-based company best known for a line of perm products used by hairdressers did something interesting. The company, Helene Curtis, created a line of shampoos and conditioners that copied the most popular fragrances but retailed for about half the price of the name brands. Then they ran very simple, inexpensive television commercials during daytime TV in which a deep, authoritative male voice would say something like: “Their shampoo smells lemon fresh; Suave shampoo smells lemon fresh. Their shampoo costs $2.50, Suave costs only $1.25. Suave does what theirs does for less.” It was a simple but brilliant strategy. It launched the billion dollar Suave brand which has since expanded into just about every personal care category including baby products, skin care, and a line of products for men.
It wasn't just the “Suave does what theirs does for less” campaign that made Suave a billion dollar brand. In the 1980's Helene Curtis made a decision to become a major player in the personal care market and staffed their consumer products division with key people from consumer product giants such as Quaker Oats, SC Johnson, and Proctor & Gamble. These individuals had the training, experience, and know-how to create major consumer brands.
Having worked in Helene Curtis' consumer products group for five years, I was actively involved in brand development and marketing. Here are some things I learned about marketing's role in growing a business.
Have an audacious vision
The mission at Helene Curtis was to become the premier provider of personal care products on a global scale. This represented an enormous shift for an organization known, primarily, for marketing a small line of permanent wave products to beauty shops.
How big and audacious is your vision for your company? I encourage you to create a vision that is big enough to make you a little nervous but exciting enough so that you want to stretch yourself in order to realize it.
Don't just meet your customers' needs
At the most basic level, people need shampoo to keep their hair clean. And at that level, just about any shampoo will do. Hence, branding. Brands address higher level needs such as self-esteem and social belonging. Even more important, brands reinforce the customer's sense of who they are…their self-identity. For example, people who buy brands like Suave, think of themselves as "smart consumers" because they're buying a product that is identical in quality to the "name brands" but paying less.
Think about your customers. How well do you really understand them? Do you know what problems drive them crazy? Do you know what they aspire to? Do you know what their vision and mission is? How do your products and services help your customers deal with problems or attain their goals? To achieve your growth objectives, help your customers or clients achieve theirs.
Develop partnerships and strategic alliances
My most eye-opening experience while working at Helene Curtis was learning that as important as the consumer was, the real customer, the customer upon whom the most resources, time, and manpower were spent was the retailer. Even fifteen years ago, most major consumer products companies were courting mass merchandisers like Wal-Mart as well as warehouse clubs.
Looking upstream and downstream at your supply chain, distributors, customers, and promoters, where are there opportunities to combine resources in ways in which the results are greater than the sum of your efforts? In particular, can you cross-sell one another's products, do joint promotions, combine media buys, and so on to increase your and your partner's marketing power?
Be willing to say good-bye to people, products, and activities that don't support your growth
The Suave brand has been around since the 1930's. It's signature product back then? Men's hairdressing. The hairdressing is long gone but the brand is thriving having evolved with the times. During my time at Helene Curtis, brand management was constantly scrutinizing product sales to identify poor performers which were discontinued and replaced with ones that better reflected consumer trends.
As mentioned earlier, when Helene Curtis made the decision to become a major player in the consumer market, they brought in new people, implemented new processes for investigating and introducing new products, and developed new relationships with retailers. Not everyone stayed during this expansion. Not all retailers continued to carry Helene Curtis brands. Products that had once been "stars" where discontinued, reformulated, or sold.
As you develop at your plans for 2006, assess your current marketing practices, relationships, and processes to determine which will support your growth objectives and which will not, and discontinue those that will not.
In conclusion…
If you take away just one point, remember this: what you did to get today’s customers probably will not work with different or “bigger” customers, and what works for your customer today may not work for them tomorrow. You cannot grow your business by doing more of what you did to bring your business to this point. At some point your will have gotten as much return as possible on your marketing investment and it's time to move on.
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