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Demetra Andrews Presentation, Fall 2005

Demetra Andrews Presentation, Fall 2005. Stick a fork in it, it’s done!. Marketing Strategy Shelf Life. Congratulations, you have a strategy!. You’ve churned through the marketing planning process and now you have a newly-minted strategy to show for your efforts So what do you do now?

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Demetra Andrews Presentation, Fall 2005

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  1. Demetra Andrews Presentation, Fall 2005

  2. Stick a fork in it, it’s done! Marketing Strategy Shelf Life

  3. Congratulations, you have a strategy! • You’ve churned through the marketing planning process and now you have a newly-minted strategy to show for your efforts • So what do you do now? • You marshal all of your forces • Get your ducks in a row • You IMPLEMENT! • And everything goes well from here on out, everybody gets rich and you’re the company hero!

  4. Change is Constant • Maybe for a while… but things tend to change that impact the effectiveness of your strategy • Changing market trends • Changes in consumer / customer preferences or needs • Changing technology • Changes in management or management emphasis • Changes in resource availability • Changes in supplier offerings • Changes in competitors • Changes in legislation • Changes in economic trends

  5. Change is Constant • Marketplace change might even render your strategy inappropriate

  6. In other words… Strategies often have a limited “shelf life”

  7. Whew! What’s that smell? • It’s imperative to any marketer to be able to identify when a good strategy is going bad • While IMPLEMENTATION is the sexier of the marketing strategy steps, three additional steps are also critical to your company’s success as well as your own • Implement Monitor  Evaluate  Update / Terminate • These steps will keep you objective, honest and out of trouble

  8. Today’s Topics Recognizing an “expired” strategy What to do about it CASE: American Airlines Travel Academy

  9. Travel School Overview • Established in 1987 in response to the growing need for highly trained travel industry professionals. • The travel school offers a comprehensive Travel & Tourism curriculum that provides students the skills needed to succeed in a unique and vibrant industry. • Originally consisted of 1 school in Dallas – Fort Worth (DFW) • Grew to also include a school in Chicago and a curriculum licensing business serving vocational schools

  10. Travel School: The Problem • 1998: Appointed Director of travel school; Group had lost money for more than 18 months • Task: Figure out what was wrong and fix the problem • In essence • A strategy had been implemented in 1987: Start a school • It had been augmented: Open another campus, offer licenses • The strategy wasn’t working: Travel School had sustained losses • No one was sure what to do • Strategy problem? • Market problem • Implementation problem? • Let’s walk through how this problem was deconstructed

  11. Step 1: Monitor • Get your hands on the right data • Know what’s available • Know what the objectives are • Aggregate or disaggregate at the appropriate level • Collect both quantitative and qualitative data • Travel School • 10 years of data • Profitability is objective • Disaggregation • Qualitative data • Individual and group meetings

  12. Step 2: Evaluate the Data • Figure out what the data is saying (the hard part) • Be objective • Evaluate results based on your objectives • Evaluate from the perspective of stakeholders • Look for trends (1blip, 2 blips, 3 blips) • Is there a downward / upward trend? • Are the thresholds being met? • Seek explanations for both goodand bad results • Can the causes be isolated and identified? • Travel School • Demand cycles, high school costs, credit issues • Isolation of problem: stagnant school sales • Unsuccessful effort to revitalize school sales • “Expired” school strategy

  13. Step 3: Update / Terminate • Act on your new knowledge • Augment or adapt an existing strategy • Implement an additional strategy • Pull the plug on an expired strategy • Travel School • Closed schools • Relocation for Chicago school needed • Reinstatement of school loan program required • Restructuring of cost structure necessary • Identified new market for curriculum licensing (community colleges) • Increased support for curriculum licensing

  14. Bottomline Take-aways • Implementation is an intermediate step, the follow-ups will enable you to adapt or terminate an expired strategy • Monitor • Evaluate • Update / Terminate • Expired strategies can create quite a stink!

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