Bicolano magic in a can - Planters Development Bank

MARKETING
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Draw the Conclusion
From the data matrix, management can now
determine its operational strengths and
weakness as well as the negative or positive
impact of these factors on profitability and
the commercial viability of the business.
Management can now establish what
factors will affect its ability to move forward
effectively and efficiently.
Set the Goals
Where there are issues, there should be
solutions. For each concern, determine
the objectives for improvement. From
quantifiable data, select the minimum
benchmark. For example, if there is poor
productivity, “better” productivity should be
set at a numbered goal, whether you are
looking at 60 labor minutes per finished
item, 1000 liters of used coconut oil
processed per day, P45,000 in donut sales
per week or zero accident per building site.
State the Strategies
Strategies are the actions steps or the
activities that achieve the goals that are
being set. Many however have the tendency
to mix up a goal statement with a strategy
statement. Each functional department
should develop a strategy statement as it for
example improves on its productivity output
while decreasing its operating cost.
Departments with a high head count
normally equates to a higher cost over
others that are either understaffed or have
the right number of people delivering the
functional tasks required of them.
If a department has too many personnel
doing less work, the goal statement would,
for example be, “to decrease the operating
cost without reducing its functional
effectiveness in the organization.” A strategy
is to review the task load of the department
relative to its staff count and re-align the
task load to the suitable headcount. Excess
personnel shall be transferred to other
understaffed departments, and service
retrenchment shall be applied for staff who
will not be absorbed.
Determine the Risks
Before formalizing the strategy, consider the
risk factors that may go along with it. What
could go wrong? Will a cost cutting strategy
that desires to protect the bottom line be
an exercise of being ‘penny-wise and pound
foolish’? State the possible risks for the
record so that if management agrees to the
proposed strategy, it is aware of its possible
failure points.
The media and trade marketing
budgets are often the first to be slashed
when profitability is threatened. If the
company’s fast moving and highly profitable
products are competing in a marketingdriven
environment, cutting down on media
spending or trade marketing support is not a
good idea. The ill-supported brand will see
weakening demand as its target market’s
purchase attention will be grabbed by more
visible rivals.
Measure the Results
There should be a KPI (Key Performance
Indicator) or a KRA (Key Results Area) that
serves as the grading criteria for the success
or failure of the strategies that are associated
with the goal statements.
Management uses these barometers
in evaluating the team’s performance—
department head and staff which will impact
on their salaries and upward promotion.
The shareholders likewise uses these same
grading criteria in determining the company’s
business health so that they can make the
right decisions in further supporting the
company, or creating its exit strategy.
At the end of the day, the exercise will
have its golden value in preparing for the
worst and hoping for the best, or forging
more aggressively forward if the economic
challenges will not be clear hindrances at all.
Herbert M. Sancianco has over 20
years of experience in advertising,
marketing and sales operations.
He owns and manages Market
Bridges, Phils. Inc., a full
marketing services company,
with offices at 11-0 Burgundy
Corporate Plaza, 252 Sen. Gil
Puyat Avenue, Makati City.
The author can be reached at
mbpidmbc@i-manila.com.ph or
at Tel: (63-2) 886-4122 to 23.
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VOL. NO. 03 / ISSUE NO. 05