By Richard Czerniawski and Mike Maloney
Which Comes First—Strategy or Tactics?
The mere suggestion that tactics precede strategy causes
traditional marketers to shudder. We have been schooled—drilled—in
what has become almost instinctive within many organizations: we start
marketing planning by identifying objectives; then proceed to create strategies
designed to realize our objectives and, finally, choose to execute those
tactics that give life to our strategies.
Why is it, then, that many strategies are still-born
and others live an unfulfilled life?
As Leo Kiely, president of Coors Brewing Company, has
said, “Strategies are war-games. Tactics are war itself.” Oh,
the strategies are critically important. They provide needed direction
for mobilizing an organization to achieve a competitive advantage. In
an “age of sameness,” this could be the essential difference
between winning and losing in the marketplace. But the strategies chosen
are appropriate direction only if we can execute them (and they lead to
the achievement of our objectives).
We’re all familiar with companies and brands whose
poorly executed strategies resulted in failure. Think about it. A given
strategy is useless—even counterproductive—if the company lacks
the ability to successfully execute it. And, all too often, strategies
are concocted without understanding the company’s capabilities in
successfully executing them in the marketplace.
Before we can begin to develop a strategy, we need
to have a sound understanding of the objective and our ability to achieve
it, particularly with competitors striving for similar or opposing objectives
in what is typically a win/lose marketplace (one wins at the expense of
another’s loss). Even in those categories where significant market
growth pulls every competitor into the winner’s circle, some will
win more.
So it makes sense to take inventory of potential tactics
that the company can employ before finalizing strategic thinking. We can’t
use what we don’t have (e.g., size). And we shouldn’t attempt
to lead with what we have but our competitor has more of. So we have to
appreciate our company’s capability to execute in relation to its
competitors. Which also means that we need to understand what we can execute
in the marketplace and what our competitors can and cannot do.
Gatorade’s Branding Success Story
Gatorade represents an example of a brand that has
successfully evolved strategy from tactics. Gatorade got its commercial
start by selling products to college teams. It was all its resources,
market development and product development (remember the powdered form?)
would allow. Outstanding collegiate athletes and coaches eventually found
their way to the professional ranks and so did Gatorade.
When the Quaker Oats Company took over ownership of
Gatorade, it drove long-term relationships with organized support teams
and associations. They also had the capability to develop product and
drive retail distribution to broaden availability. When Coca-Cola, with
its PowerAde, and PepsiCo, with its All Sport, entered the market (which
Gatorade created), neither could make a meaningful dent against the brand,
given its impenetrable position with organized sports, sound product and
retail strength.
Quaker Oats Company was able to build upon previous
brand successes with the company’s tactical capabilities. As such,
they were able, over time, to immunize consumers against the entry and
muscle of cola giants Coca-Cola and PepsiCo. More important, neither of
these two companies could achieve success by playing the same game as
Gatorade. Now, with PepsiCo’s acquisition of Gatorade, the brand
has even more capabilities and tactics at its disposal and, with them,
a greater degree of strategic freedom.
In summary, tactics precede strategy in those cases
when we need to gain an appreciation of what we are capable of executing
and thus achieving. An examination of potential tactics reveals the degrees
of strategic freedom open to our brands versus the competition. Knowledge
of executable tactics enables us to create winning strategies.
Tactical Action Steps
- Start marketing planning by identifying key business and marketing
objectives.
- Brainstorm tactics available to you and assess the potential of each
in enabling the brand to achieve its strategic objectives.
- Identify the key drivers for success and competitors’ capabilities
in these areas.
- Determine the degrees of strategic freedom open to your brand through
your company’s capabilities in both the absolute and relative to
competition.
- Create strategies you can successfully execute, that will permit you
a competitive advantage and lead to achievement of your key objectives.
Authors Richard Czerniawski and Mike Maloney are
principals of Brand Development Network International (847-256-8820) and
authors of Creating Brand Loyalty (AMACOM 1999).
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