Aiming for growth in tough times? Yes, we can

These are exceptional times.

We are in the middle of running a marathon. Around the half-way mark, there comes a point when the finish seems too far. It is at this moment that the great runners get what is called a ‘’second wind.’’ This is when their experience, training and focus kick in. Today, businesses are at a point when they are confronted with a slowing consumption environment, weakened credit markets, further compounded by the threat of a global pandemic. How can businesses get a ‘’second wind’’?

In the book The 7 Habits of Highly Effective People, Stephen R. Covey talked about

The Circles of Influence and how they can help us focus our energies and efforts to achieve the desired outcomes. I believe businesses can use this model to grow, especially during tough times.

Factors such as the marathon route lie inside the Circle of Influence, wherein participants can appeal to the organisers to provide a good track to facilitate our running. Likewise, business often engage proactively with the government to press for a conducive trade environment. Recently, the Prime Minister’s clarion call to ‘’Collaborate to Create’’ is an apt example. Businesses can influence in shaping progressive policies and reforms that can facilitate secular business growth.

Let us now look at some of the choices that are available to us to navigate our businesses, especially during tough times:

Innovate to grow
It is widely believed that if you are not innovating, you are dead. You don’t need to be the first, but you must get it right. Sony Walkman and Apple i-Pod are perfect examples. They were nowhere near to being first, but they had perfected the idea, thereby creating revolutionary products. Apple waited for the perfect time to get the ecosystem right for i-tunes and the advent of the broadband.

Innovation is not just about new products but about new ways of looking at things. In the mid 2000s, Cadbury faced a challenge of growth, despite having a dominant share of the chocolate market. We launched a campaign ‘’kuch mitha ho jai’’ based on the consumer insight that Indians consume sweets in the form of ‘’mithai’’. The new positioning helped the brand grow at CAGR of 30% for eight years consecutively.

Hindustan Unilever’s successful introduction of single-use shampoo led to the adoption of the miniaturization strategy in the country – that involves serving products in affordable portions, sachets or sizes to induce trials and deepen market penetration. The fintech revolution is rooted in the sachet economy of the past.

Harness technology
Technology is not only transforming the way we live but the way we work and do business. It is critical for companies to embrace evolving technologies in every business function. It can work as a multiplier and drive  efficiency, productivity, growth and profit. It can also be used to propel innovation to recruit, engage and create memorable experiences for customers. Today marketers possess the tools to gain insights from data to understand latent needs and behaviour of customers and predict product configuration and experiences that would resonate with customers. Iot, Big Data, machine learning and AI are no longer just buzz words, they are helping brands craft differentiated strategies maximising reach and scale.

Focus is key
All too often, businesses try too many disparate things, spreading themselves too thin with little belief in any of the activities. Less is more – More is actually less. Focussing on few activities that have the maximum impact can lead to better business outcomes. Companies that do a few things and put their commitment behind them actually make a meaningful difference to their business.