Rather than fight tough competition in a ‘red ocean’, products’ and services’ providers should develop a ‘blue ocean’ strategy whereby they find specific market needs and positions, and then service them. That was the key message imparted by Resi CEO Lisa Montgomery when she addressed the March National Cleaning Suppliers Association of NSW breakfast.
Held at Rydges Rosehill (Sydney), the breakfast was attended by supplier and distributor executives.
In a presentation themed, ‘How to not only survive but thrive in a downturn’, Montgomery took her audience through Resi’s tough experiences during and post the global financial crisis. “The fact that we (Resi) came through the GFC is testament to our structure and strength,” she noted.
The ‘boutique’ non-bank lender was established in the 1980s and today has $3 billion under management.
When the GFC downturn came, Resi assessed its current product offering and asked itself whether it could do better; examined its team’s commitment and passion; and reviewed the organisation’s business model and services.
Turning to marketing, Montgomery revealed that Resi’s advertising spend is about 70% digital but she cautioned, “that does little for the brand so you still need to do brand advertising.” Montgomery also admitted that digital advertising could be problematical.
Looking at the bigger picture, all companies need to ask themselves, ‘are we being true to our brand?’; ‘is our brand still relevant?’; and ‘do we live up to our brand?’
During the tough times Resi focused on cutting marketing dollars while trying to retain as many staff as possible. “There’s no point spending in a dead market,” Montgomery claimed. The company concentrated on nurturing key customer relationships, keeping staff informed, and maintaining a high level PR presence.
Resi’s ‘consumer advocacy program’ was very important, using the press to reach consumers. The company has been successful with an ongoing ‘generic’ approach to media by simply presenting itself as the industry expert, always ready to comment on financial matters and to advise consumers.
Other initiatives that Montgomery recommends are designing new products to meet changing markets; reviewing business partners; support those at the ‘coal face’ (in Resi’s case, its franchisees); and diversify if necessary.
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