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“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat” - Sun Tzu
Last week, we dealt about the implementation of business strategy. Same day, a reader who was a marketing executive asked me a question which led me to believe he didn’t know the difference between strategy and tactics.
Let us do a little clarification. In simple terms, here’s how it breaks down: First goal, second strategy and third tactics. For example, if we talk about war, the goal is to win the war. Strategy is (maybe) ‘divide and conquer’. And tactics could be gathering intelligence, Navy knocking out enemy communications, paratroopers securing the airports. Armoured divisions racing in and dividing the opposing army’s forces, drone attacks take out the enemy leadership, etc.
As you can now see, a strategy is an idea, a conceptualization of how the goal could be achieved. A tactic is an action you take to execute the strategy.
Let us take a true-to-life experience. The Directors of Karthelis and Company noticed that sales of their popular Kurtha brand baking soda were slipping. The loyal moms and grandmas who had been buying the same baking soda all their lives weren’t baking as much as they used to. The directors sat down, talked things over and settled down for a plan consisting a goal, strategy and tactics to execute a business turnaround operation.
Business goal: Turn the tide and increase baking soda sales.
Strategy: Devise new reasons for their current customers to pick up that yellow box with Kurtha emblem at the supermarket and use more baking soda. Specifically, sell baking soda as a deodorizer for the fridge. (That’s a big, strategic idea that will lead the Kurtha brand in a completely different direction). Plan marketing a whole line of environmentally-friendly cleaning products under Kurtha brand. (Every Kurtha product (e.g. toothpaste to cat litter), originating with that strategy of finding new ways to use baking soda).
Tactics: TV advertising, magazine advertisements, infomercials and retail promotions, website dedicated to all the various uses of Kurtha brand baking soda.
In addition, all the traditional marketing tactics were employed.
01. Thorough understanding of the brand’s status and story. Kurtha has a strong heritage that dates back to the 1950s. That yellow box with the red Kurtha logo is instantly recognizable and stands for much more than just generic sodium bicarbonate.
02. A realistic assessment of the product’s strengths and weaknesses. Market research proved that people don’t bake as much as they used to. But it also showed that people use their baking soda for all kinds of things besides baking.
03. A clear picture of the competition. Kurtha has always been the undisputed market leader in the category. However, when they decided to introduce toothpaste and laundry detergent, the competition became fierce. Kurtha’s long-standing leadership position in one vertical market gave them a fighting chance against other brands.
04. Intimate knowledge of the consumer and the market. The shift away from the traditional homemaker directly affected baking soda sales. Kurtha kept up with the trends and even led the charge on environmental issues.
So, the picture is clear. A great strategy does not depend on brilliant tactics for success. If the idea is strong enough, you can get by with mediocre tactical execution. However, even the best tactics can’t compensate for a lousy strategy.
Sometimes you can build a great strategy around a simple, tactical idea- like Dominoes did with their 30-minute delivery guarantee. Someone said, “Hey, what if we guaranteed 30-minute delivery?” and a strategy was born. They couldn’t compete on product quality, but they could compete on speedy delivery. After that, their entire operation revolved around the promise of 30-minute delivery.
Here are a few examples of tactics that have proven highly effective for any business.