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How to Set Clear Objectives and Create a Strategic Plan for Success

Why is a strategy important?


There is an old saying: if you don't know where you are going, any road will take you there. In other words, you need an objective. You need to know where you are going and have a plan for how you will get there. This plan is your strategy. Along the way, you might decide to stop for sustenance or even take a shortcut, but the objective remains the same, and so does the plan to achieve it. Without a strategy, you rely on whims and luck. While something beneficial might happen by chance, this is not a good way to plan the future of your company.


What are the key components of a strategic plan?

There are four key components to a strategic plan:

1.      Research: To develop a strategy, you need to fully understand the marketplace. This means knowing the market size, segmentation, behaviours, and needs of people within the market, as well as understanding the competition and trends. Detailed research and thorough analysis are essential. Up to 80% of your time in strategic planning may well be spent on this first component.

2.      Objectives: This involves determining where you want to go within the market and what you can achieve. Objectives must be realistic, timely, and measurable to track progress. Setting unrealistic goals, such as aiming for the moon and hoping that anything less will be a success, is not a true objective.

3.      Strategy: This is the overall game plan for achieving your objectives. It involves understanding customer needs, how your offer meets those needs, your pricing strategy, and how you will reach out and persuade customers through promotions.

4.      Tactics: Tactics are the detailed methods for winning the many battles as you move forward. They may change regularly, whereas the overall objectives and strategy should remain constant.


What are the most appropriate frameworks for developing a strategy?


There are over 80 frameworks available on this website for developing a strategy. A good starting point is to determine where you are now and where you want to go. The SWOT analysis is a tried and tested favourite, helping you understand your strengths, weaknesses, opportunities, and threats. Alongside SWOT, a PEST analysis can help you understand the political, economic, social, and technological pressures on the market.


Understanding your customer value proposition (CVP) is crucial. This involves identifying what makes your product desirable to customers, considering the jobs your customers need done, the pain points your product relieves, and the wins they gain from using your product.


Once you have determined your CVP, think about how to communicate it as a brand. A brand conveys recognition and perceptions that justify customers choosing your product. Michael Porter suggests three broad brand positions: differentiation with premium products and a strong brand identity; low-cost products for value-seekers; and specialized products that operate in a niche and meet specific needs.


Communicating brand values can be aided by the brand “bullseye” framework. This will help you consider your brand from the customer's perspective, its personality, supporting evidence that says the brand values are valid, and crucially what the brand stands for - its essence.

With a CVP and firm brand position, you can focus on how best to communicate your offer and reach customers. The AIDA framework (Attention, Interest, Desire, Action) is useful here. Building awareness is the starting point, followed by creating interest and desire, and ultimately driving action or sales.


Conclusions


Research is the foundational component of a strategic plan, requiring a thorough understanding of the marketplace, including market size, segmentation, customer behaviours, competitors, and trends.  


The plan needs objectives which define the desired outcomes and milestones within the market. These goals must be realistic, timely, and measurable to ensure progress can be tracked accurately.


The strategy is the overarching plan to achieve the set objectives. It involves a deep understanding of customer needs, aligning the product or service to meet these needs, determining the pricing strategy, and planning promotional activities to reach and persuade customers.


Tactics are the specific actions and methods employed to achieve strategic goals. These may evolve regularly in response to changing conditions, while the core objectives and strategy should remain stable.


Some Frameworks for Developing a Strategy


There are dozens of frameworks to help you develop a strategy and here are a few favourites to start you off:


1. SWOT and PEST Analysis:Starting with a clear understanding of the current position and desired future state, SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis helps in evaluating internal and external factors. PEST (Political, Economic, Social, Technological) analysis further refines understanding of external pressures impacting the market.


2. Customer Value Proposition (CVP):Understanding the CVP is essential for identifying what makes the product or service desirable. This involves analysing customer needs, pain points addressed by the product, and benefits derived from its use.


3. Brand Positioning:Brand positioning, as suggested by Michael Porter, involves choosing among differentiation with premium products, low-cost products for value seekers, or specialized products for niche markets. The brand's identity and values must be clear and compelling to justify customer choices.


4. Brand “Bullseye” Framework:This framework helps in considering the brand from the customer's perspective, defining its personality, supporting evidence, and core essence. This ensures that the brand values are perceived as valid and meaningful.


5. AIDA Framework:The AIDA (Attention, Interest, Desire, Action) framework guides the communication of the offer to customers. It starts with building awareness, followed by generating interest and desire, and ultimately driving actions or sales. This framework ensures a structured approach to engaging and converting customers.

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