Revenue growth management. New thinking required.

Dear reader

While most companies are struggling to improve their economic results, a fact comes immediately to mind: the net revenue line is the most powerful leverage to improve EBIT.

It is not easy to drive an increase in net revenues without increasing price, but it is possible and feasible. I have seen great companies doing it through product differentiation, smart segmentation, and improved channel focus; sharp consulting firms such as Globalpraxis are leading the charge in many sectors with outstanding results.

Globalpraxis - consulting at high level

One of the keys to successful business today: understand the modern consumer, innovate regarding his/her needs, and communicate this innovation effectively. Result: more sales at a higher price!

To better understand modern consumers is essential. They are typically different from the traditional breed – multitaskers, who simultaneously swipe their iPhones, work on their iPad, read a newspaper, listen to loud rap music, drink a cup of coffee, and miraculously hold a conversation. We may not necessarily like such a person. Still, it is key that we try to better understand what he / she wants.

Keys to successful business today: understand the modern consumer

This brings us to the importance of coming up with relevant innovations – i.e. something that today’s consumer might need and appreciate. It would be better to bring these out fast (even if on their own, they may be relatively small) rather than to rely on major innovations that might emerge from a central lab, and on an infrequent basis. We could talk about new business models here, such as new routes to market, or developing innovative, more luxury-centric brands. Innovations could also come in the form of further modifications of one’s products, and so on.

Communicate a given innovation to the target customer group. Social media might be particularly key here.

The next step would then be to create an effective way to implement and communicate a given innovation to the target customer group. Social media might be particularly key here. This might be more effective for reaching the modern consumer than traditional advertising, for instance.

Silo thinking does not work (cartoon)The all-too-frequent silo thinking would not work

The amazing, and encouraging, result of all of this is that we might then be in a position to state a higher price, and to sell more! This is value-based selling, not discounting! Plus, our profitability would also grow – good news!

So, there are plenty of opportunities in today’s business world, but to benefit from them would require a focus across disciplines. The all-too-frequent silo thinking would not work!

Yours,
Peter Lorange

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Why Apple should not call the lawyers

Dear reader

you have certainly heard or read about the battle Apple is fighting with Samsung. Have you shaken your head? How round may edges of a tablet computer be? If the only distinct characteristic of a high-tech product is its design, how innovative can the product be? Or the company behind?

For me, innovation has to do with how established organizations – in manufacturing and / or service – can come up with significant improvements regarding their product and / or service offerings which are understood / appreciated by its customers – it can thereby sell more and / or take a higher price! So, innovations for me have to do with how existing well–established firms innovate, to stay competitive!

But I don’t think it’s a question that lawyers should answer. In an article of the serie ‘Peter Loranges Letter’ which I am doing for

a leading international consulting firm specialized in route-to-market and commercialization issues, I reflect on innovation and how to implement it.

Yours,
Peter Lorange

>> Click HERE or the thumbnail image to download the full article as PDF <<

 

Making money is art

Dear reader

Andy Warhol once said: „Being good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art.“
The ultimate goal of marketing is to sell more products and services, to more people, more often and at a better return. In this weeks program (today and tomorrow) called Customer Value Management Philippe Marmara and  J. André de Barros Teixeira will explore key marketing concepts, customer insights and techniques to support organizations in delivering exceptional marketing.

Yours,
Peter Lorange

Philippe Marmara

The current senior partner and vice president of Globalpraxis Consulting is responsible of the group marketing strategy and assists senior clients in business development, commercialization and marketing. He also advises CEOs and GMs on development strategies and is a board member of Quantum leap / Options Avenir in France. His 25 years of experience include the Coca-Cola Company, Vodafone, Heinz, Unilever and KLM. He holds an MA from the Institute of Economic and Management Studies, Bordeaux, and an MBA (honours) from London City University.

J. André de Barros Teixeira
Dr. Teixeira was Vice President, International R&D, with Campbell Soup Company between 2007 and 2010. Since 2005, he has consulted on projects through eemPOK, an Experiential Innovation Management company he founded in Belgium, covering the following areas among others: new businesses, innovation strategies and customer-centric innovation. He is also a partner at A4BS, a technology start-up based in Belgium. Previously, he was Vice President, Global Innovation and Development with Interbrew (subsequently InBev) and was with Coca-Cola for 23 years worldwide and among many positions was President for Coca-Cola Russia, Ukraine and Belarus. He is a frequent guest speaker in a number of conferences world-wide and lectures in Innovation Management at business schools and is Chairman of the Board of the International School of Brussels

Zurich Business Forum – Impressions

Dear reader

we’re glad to share with you some live pictures from the first day of the 3rd Zurich Business Forum.

Yours,
Peter Lorange

Early morning networking

Early morning networking

Opening session (myself speaking)

Talking to Stephan Brunner, Brunnerwerbung

Philippe Marmara, Globalpraxis: 86% of all innovations are imitations!

Prof. Manson: Innovation through material science

Joerg Reckhenrich: What can leaders learn from the arts?

Joerg Reckhenrich debating about arts and business

Peter Lorange with Jan-Anders Manson from the EPFL (ETH)