Situation 08
Growth has stalled.
Revenue has flattened and the reasons are contested inside the business.
The situation
Revenue has plateaued. Marketing is working harder for less, distribution gains have slowed, and the explanations differ depending on who you ask.
Usually the constraint is a small number of things, and they are not the ones being argued about.
What usually goes wrong
- More marketing spend is applied to a proposition problem.
- New products are launched into a range that is already too wide.
- Distribution is chased at the expense of rate of sale.
- Everyone works on the plan except the constraint.
- The business benchmarks itself against last year rather than the category.
What needs to be established first
- Where is growth actually coming from and stopping, by channel, customer and product?
- Is the constraint demand, distribution, product, price or capacity?
- How is the category moving, and how is the brand performing within it?
- What is the return on current marketing investment, honestly measured?
- What has the business stopped doing that used to work?
The next 30 to 100 days
- Establish a single, agreed picture of performance from the underlying data.
- Identify the constraint and test it before rebuilding the plan around it.
- Rebuild the commercial plan by channel with clear ownership.
- Reallocate marketing investment towards what can be measured.
- Set an operating cadence that reviews performance rather than activity.
Capabilities involved
Other situations
Situation 01
The CEO has resigned.
Situation 02
The board isn't functioning.
Situation 03
A product recall has landed.
Certain details have been withheld or generalised to protect client confidentiality.
