Discovering new ways to grow

VOL. 0013 – FLORIDA, MONDAY, MAR 27, 2023

Juan F. Arjona Harry

President & CEO Strategee

Finding strategic alternatives to grow requires additional actions of analysis and searches that go far beyond a simple analysis of breadth by depth in the portfolio, given that this path of innovation is quite resorted to and almost always covered.

Cross-fertilization [innovations that are adopted from another unrelated category) helps a lot in the analysis of breadth by depth, especially in the crossing of alternatives of one of the two products or brands to "pair", finding products that leave their original "form" to adopt another form with the purpose of achieving the "pairing" and thus give rise to a new product of which there are several examples of success.

But digging even deeper we can find intelligent growth alternatives, in addition to those provided by cross-fertilization, prowling around the Demand Drivers. Next, we will see alternatives of possibilities of direct and effective growth on their categories:

1. Consumption Units: These are the same people (in B2C), companies and government (in B2B) who consume, considering that the greater the number of consumption units (or demand units), certain, credible and stable alternatives for growth can be found. Marketing efforts can focus on adding Consumption Units to your market, decreasing purchase inhibitors and stimulating potential purchase decision makers towards consumption.
   

2. Consumption Rate per Unit of Consumption: This is the rate at which the final consumer or industrial users consume the product or service. An increase in this rate of consumption-under the promise of being very convenient or productive their consumption, are expanding the demand allowing brands to sell more in that market. Marketing efforts to sell more can focus on showing the benefits of consuming more (both in the consumer market and in the B2B market) Or they can focus on showing how risks or negative consequences are reduced by consuming to a greater extent the amount that the brand is promoting.
   

3. Usage Rate per Unit of Consumption: This is the rate at which the industrial user or the end consumer himself uses the product or service. An increase in this rate of use -under the promise of being very convenient or productive its use, are expanding the demand allowing brands to sell more in that market. Marketing efforts to sell more can focus on showing the benefits of using more product (both in the consumer market and in the B2B market) or they can focus on showing how risks or negative consequences are reduced by using to a greater extent the amount that the brand is promoting.
   

4. Purchase Rate: is the amount or magnitude that the final consumer or industrial user (B2C & B2B) consumes or uses on each occasion of use or consumption. An alternative for growth may be to make pure and real efforts to increase this rate of use or consumption per unit of consumption. Many efforts of guilds of an economic activity or companies that model the category, are aimed at increasing the rate of use or consumption, finding here a growth.
   

5. Purchase Frequency: is the number of times that a consumer or user of a product or services, consumes or uses a product or service -at a certain rate-. Marketing efforts to reduce the time that elapses between one act of consumption and another, will allow the expansion of demand and higher sales of the category, bringing growth for brands.
   

6. Replacement Rate: is the relationship between the entry of new units to the market, replacing others that are leaving the second-use market. Stimulating a higher replacement rate (i.e., shortening the periods between purchase and purchase), will allow to expand demand and grow sales for categories and brands.
   

7. Volume Purchased per Purchase Item: is the quantity or magnitude of the act of purchase in each act of purchase (expressed in grams, milligrams, liters, milliliters or other respective measures). One way to impact growth is to stimulate different tactics to offer more product per act of purchase with the benefit of a lower cost per unit. The expansion of demand will be immediate and the share will prevail for whoever starts first.
   

8. Occasions of Consumption: are the specific moments during which the category of products / services in question is consumed or used. The greater the consumption moments, the higher the per capita consumption in the category, thus increasing total demand and the hope of higher sales for brands.
   

9. Purchase Occasions: these are the specific moments in which the brand-consumer encounter occurs at the point of sale. If these new opportunities or purchase opportunities grow, it is quite likely that demand will expand and brands will grow.

At Strategee we accompany our clients in finding and preparing their management skills and abilities, in order to operate successfully in new competitive arenas that positively impact corporate growth.