Model for Strategic Development

Knowledge is foundational

Both internal & external analyses provide the basis for strategic insight. Initiatives which can transform performance derive from comprehensive study. Windward Group brings a number of analytical techniques to a client’s problem, studying it from different angles to thoroughly understand the situation & its potential solutions.

Step One: Internal analysis

diagnostic ™

diagnostic ™ is a practical approach to analysis of a company’s internal capabilities. Windward Group critically analyzes a firm’s practices compared to best practices. The key functional areas evaluated in the diagnostic are:

Brand Strategy – Brand articulation, strength of brand spirit, unique selling proposition, and on-strategy delivery of all marketing and advertising communications

Marketing Strategy – Strategies to increase trial, loyalty and sales per customer including communication, promotion, copy and graphic strategies, in-hands dates, catalog & web architecture

Merchandising – Category structure, new product development strategy, assortment and key item strategy, product selection criteria, book architecture, vendor structure, pricing, density, sku strategy, merchandise analysis and metric benchmarking

Inventory Management – Buy strategies, initial and final fulfillment, sku management strategies, margin management, sale strategy, overstock and liquidation strategies, all metrics, and appropriate links to merchandising, marketing, Web, sales (telemarketing) and distribution

Database/Circulation - House file contact, retention & reactivation strategies, acquisition strategies, database platform, database research, statistical modeling, all metrics

Internet Strategy – Alignment with overall strategies and traditional channels, correct sales attribution, search engine optimization, email marketing, integrated contact strategy, site usability, web metrics

Customer Insight - Knowledge of customers by segments, demographics, psychographics, knowledge of buying behavior, determining points of business leverage

Windward Group utilizes a combination of analytical techniques to ensure a complete understanding of the problem. For instance to understand consumer behavior, we often employ database research, primary consumer and executive research (focus groups, quantitative surveys, one-on-one interviews, etc.) and extensive internal analysis of core issues (e.g. merchandise selling). This multi-faceted combination provides a powerful view of consumer behavior and robust insight of which levers to pull for transformational impact.

Windward Group’s deliverable is a set of strategic and actionable recommendations by functional area, integrated across channels and fused with the overall business strategy, to improve business practice and, thus, business results.

Step Two: External Analysis

horizon finder ™

We help companies understand how external environments affect performance. This includes understanding the economic, regulatory, and consumer trends as well as the competitive landscape. We utilize public domain documents, news articles, data cards, catalogs, websites, SEC filings, executive interviews and consumer research to compile data.

Many clients utilize our competitive analysis a comprehensive process involving:

Identifying the key competitors in the critical market niches and specifying the learning objectives for each competitor

Defining how the competitor is structured organizationally

Reviewing and evaluating key metrics including:

File size

Average unit of sale

Major business segments and how they contribute to overall business volume

Tracking growth to understand who is expanding/growing or shrinking and why

Examining key competencies to determine best practices in:

Creative presentation

Circulation – including database practices and acquisition

Merchandise assortment and analysis – including density, book architecture and pricing

Operations and fulfillment

E-commerce and e-mail marketing approach

Defining their offering and unique selling position and their true competitive advantages

Identifying what these advantages buy for them and how to mitigate them

Defining their weaknesses and identifying how to take advantage of them.

Defining key learnings from competitors

Articulating implications for the client

Broad Trends : In addition, we help companies identify broad behavioral trends which affect how their customers interact with the company’s brand and how these trends change behavior over time. This is a powerful analysis and helps companies gain relevance and increase brand trial and loyalty.

Ultimate Deliverable of combining both internal and external analysis is a strategic vision, a recommended strategic path for the client. For most impact, deliverables are integrated across functions and imminently actionable.

Phase 2: impact

Strategy without implementation is nothing!

Windward Group develops action plans for all of recommended strategic initiatives. All are:

Often the action plans include “what if” models. For instance, if we are recommending increased new product development, we will include a model that delineates number of new products, incremental sales, gross margin and marketing contribution by category by year. The client can modify assumptions to quickly see the impact of specific actions on future growth.

We consider resourcing initiatives to be critical. If we believe new positions need to be added, we may include a recommended organization structure with job descriptions. Modifications to existing positions may also be delineated.

We work with the clients’ Senior Leadership, including Finance, to vet the action plans and ROI projections so there is buy in and belief at the end of the project.

Strategic Development Model

Phase 1: insight

Knowledge is foundational

Step One: Internal analysis diagnostic ™

Step Two: External Analysis horizon finder ™

Phase 2: impact

Strategy without implementation is nothing!