A couple weeks ago I wrote about a regional grocery chain that had expanded rapidly and was exhibiting empty shelves. Sadly, the chain is falling apart. Several stores have been closed with hours’ notice. A couple have been sold to another regional chain. Every week more stores are dropping from the chain.
Of course, that is very bad for the chain in many ways. One way is the vicious cycle of the announcements of closings. These further discourage customers from shopping the remaining stores and subsequently weaken the rest, whether they are healthy or not. How this cycle ends is unknown. Interestingly, the chain started from the success of one local store.
That success grew from the efforts of the founder. Likely, he ran the store by the seat of his pants. He followed changes that were happening in the industry and implemented them, probably after they had been proven effective by other stores. He is a nice man and a strong part of his community, which endeared him to the residents and prompted their patronage. His efforts worked for his business in a less competitive environment.
Just like most small businesses, I suspect that he never had a written marketing plan. If one had been suggested to him, he probably would have said, “Why do I need one? My store is doing fine.”
What he didn’t know was the revenue a marketing plan would have generated.
He also didn’t realize that the lack of a marketing plan was a weakness. Evidently, his sons thought the same way when they rapidly expanded the business into a regional chain. Like their father and countless other small business people, they didn’t understand that planning is the most important function of management. It requires 90% of management’s efforts and is the foundation of the other functions of management, organizing, leading, and controlling.
Think about it. How can you organize anything within your organization if you are not following a plan? How can you lead your organization if you do not know where your organization is going? How can you control any facet of your organization if you haven’t set a basis for where your organization ought to be via a plan?
A marketing plan uncovers weaknesses in reaching your objectives. It helps you think through what you want to accomplish. It identifies your customers. It defines what you offer. It reveals what you will have to do to make the product or service available to the customers you seek in order to attain your objectives.
The failure of this chain’s expansion loudly proclaims the a lack of a marketing plan. Had managers completed a written marketing plan, they would not have expanded more quickly than they could handle. They would not be closing stores now. They would not have severely damaged the good name of their brand. They would not be under the threat of the business’s complete demise.
Please learn a valuable lesson from this company. Take the time to think through and write down a marketing plan. Follow it. Check it regularly to stay on track. Update it at least annually.
Do it for the health of your business.
This week's marketing trivia challenge is How has a written marketing plan helped your business? E-mail me your answer.
Of course, that is very bad for the chain in many ways. One way is the vicious cycle of the announcements of closings. These further discourage customers from shopping the remaining stores and subsequently weaken the rest, whether they are healthy or not. How this cycle ends is unknown. Interestingly, the chain started from the success of one local store.
That success grew from the efforts of the founder. Likely, he ran the store by the seat of his pants. He followed changes that were happening in the industry and implemented them, probably after they had been proven effective by other stores. He is a nice man and a strong part of his community, which endeared him to the residents and prompted their patronage. His efforts worked for his business in a less competitive environment.
Just like most small businesses, I suspect that he never had a written marketing plan. If one had been suggested to him, he probably would have said, “Why do I need one? My store is doing fine.”
What he didn’t know was the revenue a marketing plan would have generated.
He also didn’t realize that the lack of a marketing plan was a weakness. Evidently, his sons thought the same way when they rapidly expanded the business into a regional chain. Like their father and countless other small business people, they didn’t understand that planning is the most important function of management. It requires 90% of management’s efforts and is the foundation of the other functions of management, organizing, leading, and controlling.
Think about it. How can you organize anything within your organization if you are not following a plan? How can you lead your organization if you do not know where your organization is going? How can you control any facet of your organization if you haven’t set a basis for where your organization ought to be via a plan?
A marketing plan uncovers weaknesses in reaching your objectives. It helps you think through what you want to accomplish. It identifies your customers. It defines what you offer. It reveals what you will have to do to make the product or service available to the customers you seek in order to attain your objectives.
The failure of this chain’s expansion loudly proclaims the a lack of a marketing plan. Had managers completed a written marketing plan, they would not have expanded more quickly than they could handle. They would not be closing stores now. They would not have severely damaged the good name of their brand. They would not be under the threat of the business’s complete demise.
Please learn a valuable lesson from this company. Take the time to think through and write down a marketing plan. Follow it. Check it regularly to stay on track. Update it at least annually.
Do it for the health of your business.
This week's marketing trivia challenge is How has a written marketing plan helped your business? E-mail me your answer.
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