Focus only on what really matters

There is no doubt in Lackana Leelayouthayotin's mind when she makes her leading point, in recommending where companies and marketers should focus their efforts in the current dismal economic environment.

"Do not forget market share," she declared, adding that it was important for businesses to attempt to increase, or at least maintain, their market share during periods of stagnation.

"This is serious. Many people cut their expenses, and forget [the fact] that when market share dwindles, it's not easy to pull it back," said the chief executive of Cerebos, manufacturer of Brand's Essence of Chicken and other food products. Research over the past 50 years has shown that firms that place major importance on market share have been able to sustain their business, she said.

If the firm is already the market leader, or the market is saturated, it may look towards offering new products and services to existing customers, which is cheaper than finding new ones.

"Look for closely related markets or existing target groups into which you might be able to expand your products and service lines," she said.

Cash flow management is also critical, Lackana said. Many businesses that failed in the 1997 crisis did so not because they could not sell their goods, but because they lacked cash.

And don't become over-leveraged, she warned.

During the downturn, companies should focus only on major activities that generate revenue, are in demand or can add value for customers; reducing expenses that produce no impact on the business, such as inventories, utility bills, and vehicle fuel expenses that do not add to income; and restructuring business and management systems to increase efficiency. Get every manager involved, to take part in budget control, she said.

Furthermore, firms should look for "short-cut" methods by seeking alliances and partnerships to initiate business that uses the strategic differentiation of the parties involved to reap extra benefits, expand target groups and share costs, she said.

A case in point is her firm Cerebos, which recently linked up with online florist Misslily.com to deliver Cerebos products through the latter's network to recipients around the country.

Alliances that help proliferate distribution channels can also give a big boost to businesses. A good example is sim cards for mobile phones, which were previously sold only in cellphone shops. But since mobile-phone operators expanded their sales channels to grocery stores and basically everywhere, sales have shot up remarkably because consumers find it convenient to buy them anywhere, she said.

Lackana suggested companies look beyond the basic "4Ps" principle (product, price, place and promotion), and extend it to the "4Cs", comprising customer need, cost to consumer, convenience and communication.

The Cerebos chief was speaking at a recent conference organised by the OmegaWorldClass Research Institute. Before ending her presentation, Lackana played a video file of an NBA basketball game, which she said demonstrated critical issues for success. These included speed, focusing first on what matters most, excellent execution, passion and playing to win.

"Don't be chicken-hearted," she concluded.

 pichaya@nationgroup.com