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Brand & Demand: Building a Data-Driven Modern Marketing Organization

Kate Price, Partner at Prophet speaks with Caroline Chulick, Head of U.S. Marketing at Hill’s Pet Nutrition about how to drive more return on investment (ROI) with your marketing.  

Caroline Chulick is the Head of U.S. Marketing at Hill’s Pet Nutrition, a subsidiary of Colgate-Palmolive, where she leads brand strategy, media, data & analytics, integrated commerce and public relations for a premium pet food business. 

Kate Price: Given the increased focus on accountability and ROI in marketing, how has your experience been, and what shifts have you observed in your approach to demonstrate impact? 

Caroline Chulick: In my 20 years at Colgate-Palmolive, there has been a consistent strategic focus and commitment to driving ROI and measurement. However, recently there has been a noticeable shift in expectations and the way we approach demonstrating impact. With increased investment in brand building, there is greater rigor in tracking where these investments go. The key lies in aligning investments, tactics, and the entire funnel with well-defined business goals in the planning phase. The C-suite places trust in the marketing team to deliver results, but there is certainly a heightened expectation for faster feedback cycles. The cadence for presenting outcomes has increased, particularly in short-term, behavior-driven data, requiring a faster test-learn-pivot cycle. For marketing to be successful, educating senior leaders on evolving marketing approaches and technologies is a crucial aspect. There’s a general acceptance around continuous learning and our leaders understand that the traditional approaches may not be effective in the current landscape. And, we’ve found that they are always excited to learn more. 

KP: Within your organization, how has cross-functional collaboration evolved, especially in terms of partnering with other internal business units? 

CC: In the realm of CPG marketing, cross-functional collaboration has always been fundamental. However, the transformation lies in how this collaboration has evolved, particularly in the past three years. The game-changer is the increasing maturity of data within the organization. While traditional collaboration involved departments such as supply chain, sales, finance and legal, the difference now is the profound impact of data across every facet of the organization. Data-driven partnerships have become the norm, influencing how we go to market in areas like warehousing, frontline sales and end-user interactions. 

As an example, we initiated a data partnership for media purposes, which unexpectedly transformed how we approached veterinary clinics in our sales strategy. The newfound data visibility allowed us to discern critical differences between two seemingly similar clinics. Through our data, we discovered that Clinic A was loyal to our brand and distinct from Clinic B, which was also ordered just as much from a competitor. This revelation reshaped how we engaged with each clinic, providing tailored conversations and sales strategies. The availability of this data has revolutionized not only how we approach the market, but also how we tier and equip our salesforce for more effective interactions. 

These evolving dynamics in B2B marketing showcase the potential for leveraging data to achieve precise, personalized interactions akin to the one-to-one marketing approach in the consumer space. 

KP: We published a report called Brand and Demand: A Love Story which talks about the tension between the two functions. How do you balance your brand and demand marketing investments? 

CC: The dynamic between brand and demand is a nuanced one for us. Brand, which has traditionally been associated with long-term equity building, now intertwines with demand, which is focused on short-term actions. For us, the two are interlinked, and we’ve observed that our short-term (ROI) for brand building is as impactful, if not more, than it is for product-specific initiatives. Our data-driven approach allows us to find a unique balance, where we test and optimize the mix to align with our brand’s specific strengths and audience penetration. For us, it’s the strategic fusion of both that typically yield the best outcomes. 

An important component for creating an optimal balance is our team dynamics. Physical collaboration spaces and a culture of curiosity and continuous learning have been key in breaking down silos and fostering cross-functional collaboration. Our team operates with a shared understanding that we’re not just building a product; we’re crafting a brand, a lifestyle, and a connection with our audience. This distinction motivates our team, aligning their efforts to build equity and deliver a meaningful brand experience. The nature of our category, focused on pets and families, adds a layer of emotional engagement, creating a sense of purpose for our team.  

We’ve also shifted our key performance indicators (KPIs) to encourage collaborative achievements, reinforcing that synergies between different strengths and focuses lead to more impactful outcomes. My role as a leader involves connecting these dots, facilitating collaboration and removing any barriers the teams encounter. 

KP: In the report, we found four common principles of brand and demand: anchoring marketing investment in business objectives, experimentation, building a modern marketing organization and putting the customer at the center. Do you agree with these and how do you apply these to your organization? 

CC: I do agree with these principles. Anchoring our marketing investment in business objectives is a fundamental principle that we actively embrace. Each year, we set ambitious goals, some with a short-term focus and others with a strategic, three-to-five-year horizon. The key lies in translating these objectives into actionable plans through what we call a brand growth plan. This plan serves as our roadmap, and KPIs are the compass guiding our progress. The process involves a continuous cycle of testing, learning, and pivoting, ensuring we stay agile and effective in achieving our business objectives. 

As it relates to experimentation, it is not just encouraged. but ingrained in our culture. I recall a valuable lesson several years ago from an executive leader and mentor that came while I was working on a new direct-to-consumer project. He actually urged me to fail! The rationale was clear: if we’re not failing, we’re not pushing the company beyond its comfort zone. Failure isn’t a setback; it’s a sign that we’re challenging the status quo. Experimentation, accompanied by a willingness to fail, is vital for growth and innovation. 

Building a modern marketing organization requires a dynamic approach. In my three years in the current role, I’ve repeatedly recognized the need to adapt our organizational structure. The pace of change and growth demands a constant pulse on the people, structure, tools, and resources within the organization. 

Being customer-centric is not just a philosophy; it’s a way of life in our organization. Every initiative, product, or experience starts with a customer insight or a pain point that needs addressing. The commitment is to solve problems or make lives easier, ensuring that each effort is purpose-driven. 

KP: What excites you about the market in the next couple of years, and how are you preparing your organization for upcoming shifts? 

CC: What excites me most about the future are strategic partnerships and a focus on audience-first planning. We are actively seeking unconventional partnerships across the pet space, expanding our role from a nutrition company to a comprehensive pet health solution. Additionally, the shift to audience-first planning is a key evolution in strategy. This approach, which is rooted in understanding and addressing audience needs, goes beyond traditional campaign planning. The challenge lies in balancing the emotional and product-centered needs, ensuring that personalized, audience-centric strategies coexist harmoniously. The exploration of these new frontiers aligns nicely with our commitment to continuous innovation and adaptation to evolving market dynamics. 

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In the evolving landscape of marketing in a data-driven era, Caroline emphasizes the importance of aligning investments with business goals and fostering cross-functional collaboration fueled by data insights. While different industries have nuanced approaches to brand and demand marketing, she emphasizes the need for a strategic balance between short-term actions and long-term brand building. As we hear from Caroline and other marketing leaders, these continue to be reoccurring themes of driving marketing effectiveness in today’s ecosystem. 

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Brand and Demand: Driving Business Results in the Golden Age of Marketing Effectiveness

Kate Price, Partner at Prophet speaks with Colin Westcott-Pitt, Global Chief Brand Officer at Glanbia Performance Nutrition on how to link marketing initiatives to broader organizational goals.  

Colin Westcott-Pitt is the Global Chief Brand Officer at Glanbia Performance Nutrition where he is responsible for the development and oversight of their brand portfolio. 

Kate Price: Given the disruption of the last few years, marketers are being asked to take on greater accountability and demonstrate the impact and ROI of their marketing investment while creating tighter alignment with overall business objectives. How have you shifted your strategy in response to these challenges? 

Colin Westcott-Pitt: Certainly, the disruption in recent years has been a significant factor in reshaping our marketing priorities. Although, I’ve never viewed business outcomes in conflict with marketing outcomes. In fact, we’ve always operated with the mindset that one leads to another. At a brand’s core, it comes down to revenue and margin objectives. While there might be instances where marketers are overly focused on awareness or perception, in the current landscape it’s essential to strike a balance and recognize that marketing plays a crucial role in driving revenue and overall business success. 

To address the disruption, we’ve adopted a balanced scorecard approach to measure impact and ROI. This involves incorporating both short-term and medium to long-term measures. Recognizing the importance of a balanced strategy, we understand that there is no long-term without the short-term.  

We’ve taken a hard look at the role of data and how to apply it effectively has become essential for identifying growth opportunities, ensuring a balance between existing and new consumers, and ultimately driving strategic decision-making. The challenge lies in ensuring that the organization, at all levels, is fluent in interpreting and applying this data effectively. It’s crucial for the insights and analytics group to simplify complex data for broader understanding. 

KP: How have conversations with your C-suite evolved in light of recent disruptions and how has that impacted the role of brand at your organization? 

CWP: Our conversations have changed significantly. Our leadership team is increasingly engaged and curious about the changing landscape. They increasingly understand the shifting dynamics and ask more of marketing. They often begin with business objectives, emphasizing the importance of linking marketing initiatives to broader organizational goals. 

However, while marketing has undoubtedly become more data-driven and shifted towards performance metrics, the role of storytelling cannot be overlooked. We strive to find a unifying principle that everyone can align with, and that principle is often the brand. We reject the notion of silos where marketing is solely responsible for the brand. Instead, we emphasize that everyone plays a crucial role in shaping the brand experience. This approach helps break down barriers and encourages collaboration. We recognize the importance of each function, whether it’s marketing, manufacturing, or sales, in contributing to the overall success of the brand. Small initiatives, like rewarding employees with branded merchandise, can foster a sense of unity and shared purpose. 

Challenges arise when the brand is not perceived as fundamental. In functions such as finance or manufacturing, for example, it is a key task of marketing to help these teams understand the role of brand across these various departments. To do this, it requires a meaningful effort to communicate that everyone contributes to the success of the brand and, by extension, the business. It’s about instilling a sense of appreciation for the unique role each function plays in achieving overall success. We come back to the phrase “everyone has a unique contribution to success” which reinforces the idea that each person, regardless of their role or function, is integral to the overall success of the brand and the business. It doesn’t always have to be a big initiative. We hit a major milestone in our business this year and handed out t-shirts to all of our teams, which was a relatively small thing, but from an internal employee engagement, it made everybody feel like part of the story. The small things can sometimes go a long way. 

KP: How do you navigate the tensions between brand and demand, especially in the context of demand marketing and short-term performance? 

CWP: I think the key is to avoid viewing brand and demand as an either-or situation but rather embrace the idea of “both-ism,”. Balancing brand and demand is crucial, it really requires a disciplined brand planning process. Our process involves a systematic approach that aligns brand strategy with demand opportunities, setting clear objectives that include pricing strategies, promotions, and channel roles.   

To deliver against this “both-ism” approach, balancing the long and short term, the key is starting with a comprehensive situation assessment and aligning brand strategy with demand opportunities. From there, the brand planning process sets clear objectives, including pricing strategies, promotions, and channel roles. It’s crucial to recognize consumer moments (e.g., New Year’s Resolutions) that matter and retailer moments that matter (e.g., Amazon Prime Day). Success really requires a systematic and collaborative planning approach that considers each function’s unique role at different moments in time.  

We are also relentless in our measurement. Goals are tracked through a strategic performance pyramid that encompasses business objectives like household penetration, market share, and consumption. The pyramid narrows down to more specific metrics like website visits, search levels, and media reach. This provides a clear structure for tracking leading and lagging indicators at both strategic and tactical levels, ensuring the brand’s performance is measured comprehensively and preventing over-reliance on a few seductive metrics. 

KP: In our report, “Brand and Demand: A Love Story” we outline for common principles of brand and demand: anchoring marketing investment in business objectives, experimentation, building a modern marketing organization and putting the customer at the center. Do you agree with these and how do you apply these to your organization? 

CWP: Absolutely, I think these all apply. I’d say recently we’ve especially shifted towards more enthusiasm and passion for experimentation, fostering an environment without fear of failure. As we put a greater emphasis on experimentation, we’ve been able to encourage a culture of trying new things quickly, building curiosity and being data-driven. Our approach to agile learning is facilitated by having specialists delve into emerging areas, utilizing social listening and even experimenting with artificial intelligence. 

I also think we are living in the golden age of effectiveness. Building a modern marketing organization involves understanding contemporary principles and building off models like Ehrenberg Bass. Distinctive assets, a key aspect of discussions, have become more formalized and structured. Our conversations around consumer-centricity have evolved, emphasizing real-time insights and quick feedback mechanisms. We put a greater emphasis on tapping into consumer behavior through super consumer groups and communities, ensuring a continuous effort to stay agile and adapt to changing consumer dynamics. We have a small group of consumers that we tap into on a regular basis for quick feedback. Everything is changing really fast, so having the ability to tap into real-time insights allows us to stay on top of new consumer trends.  

KP: Last but not least, what keeps you excited about marketing?   

CWP: There are a couple of things that I’m particularly excited about. The first is this shift towards being measured against business outcomes. If this is the golden age of marketing effectiveness, and when we’re doing a good job, then our business results should reflect that. Witnessing the tangible results of effective marketing is exhilarating. On the consumer side, the joy lies in working with brands that can make a positive impact on people’s lives. Whether it’s contributing to a healthy lifestyle, performance improvement, or weight management, seeing the positive change in consumers’ lives is truly fulfilling. The happiness and satisfaction of consumers after using the product, like completing a marathon with a smile, adds to the overall excitement.

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Taking a disciplined approach to brand and demand – and building processes to address both functions is crucial for delivering marketing effectiveness. As Colin discussed, more and more, executive teams and boards are asking marketing leaders to prove their ability to influence revenue generation. And to do this, marketers need an integrated strategy to both brand and demand marketing.

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The Yin and Yang of Marketing: Navigating Brand and Demand in Asia 

How can brands harmonize brand marketing and demand generation for sustainable growth? 

In the bustling markets of Asia, where tradition dances with innovation, the battle between brand marketing and demand generation rages on. As companies vie for attention and market share, they grapple with a fundamental question: Which path leads to sustainable growth?  

Brand Marketing: The Art of Storytelling

Brand marketing is the soul of a company – the narrative that weaves through its DNA. It’s the symphony of colors, fonts, and emotions that evoke recognition and loyalty.  

In Asia, brand marketing transcends mere aesthetics; it encapsulates cultural intricacies. It is about preserving heritage while embracing the future. It is the delicate brushstroke that paints cultural nuances, the scent of incense in a bustling marketplace, and the whispered promise of authenticity. Imagine your brand as a tea ceremony – an intricate choreography of leaves, water, and time. Each cup tells a story, and every sip carries centuries of tradition. Moreover, Asia’s consumers crave authenticity. They seek brands that honor their roots while embracing modernity. Your brand is not just a design; but a bridge between generations.  

Take MUJI for example, the iconic home goods retailer, whose “no-brand” philosophy echoes Japan’s minimalist aesthetic and lifestyle. Their products design and eco-friendly practices embody simplicity, functionality, and sustainability. Similarly, up and coming fragrance brand To Summer artfully marries traditional Chinese scents with contemporary sensibilities, symbolizing a bridge between legacy and innovation. At the core of its product designs, To Summer is committed to restoring Eastern botanical scents, while incorporating modern elements in its packaging and retail experiences. 

Demand Generation: The Science of Conversion

Demand generation, on the other hand, is the alchemist’s potion – data-driven marketing that turns curiosity into action. It’s the digital bazaar where clicks become conversions.  

In Asia, it is the neon glow of a night market, the haggling over prices, and the thrill of discovery. Picture your demand generation as a street food stall with the inviting sizzle of skewers and aroma of spices. For Asian consumers, demand generation is synonymous with urgency, akin to a street vendor’s cry of “Limited stock, last chance!”  

Luckin Coffee’s rise in China exemplifies this urgency, capturing consumers’ attention through exciting product launches and brand partnership campaigns. This allowed them to seize the China market with break-neck speed, swiftly surpassing industry giant Starbucks last June. In 2023, Luckin Coffee launched 102 new products, including one Baijiu-infused coffee in collaboration with China’s esteemed liquor brand Maotai. 

The Dance of Growth

Harmonize the Yin and Yang

Successful growth in Asia requires a harmonious blend of brand marketing and demand generation. They are not rivals but rather synergistic dance partners, with brand storytelling setting the stage while demand generation fills the seats. The key lies in regularly fine-tuning your brand-to-demand ratios based on the goals of your brand, the product/campaign and audience response. Brand and demand teams also need to commit to open communication and engagement to achieve an integrated decision-making process.  

In the past two years, Prophet has interviewed brand and demand marketing leaders across the world to understand how these functions can be brought together to drive greater impact. Our research found that the majority (60%) of marketers have a ‘balanced approach’ to Brand and Demand. It’s the orchestration of both channels that often defines their effectiveness. (Download our global report here.) 

A great example of how balancing brand and demand can drive uncommon growth is Lululemon. Consumers in Asia are increasingly health-conscious, yearning for meaningful experiences with physical and mental wellbeing. Capturing these unmet needs, Lululemon markets a healthy lifestyle by placing a great emphasis on building confidence and empowering people through innovative products and positive experiences. By focusing on its core values, Lululemon creates a brand that resonates with its audience. On the other hand, Lululemon focuses on creating a deep connection with its customers through community building on top of brick-and-mortar and e-commerce expansion in Asia. This creates a sense of scarcity while urging customers to join its events. It also allows Lululemon to listen more closely to what the local customers need (e.g. launching Asia Fit line). This strategy helps Lululemon to continuously drive demand, loyalty and advocacy. 

Localizing the Choreography

Asia isn’t a monolith; it’s a mosaic. Brands must adapt their moves to each cultural tile. While it is important to adhere to consistent brand essence and offerings across all global markets, local cultural nuances must be considered when developing a go-to-market strategy for each Asian region. From Japan’s deep bows to India’s respectful nods, cultural sensitivity is paramount in crafting a bespoke go-to-market strategy tailored to each locale. Localization isn’t a checkbox; it’s a pas de deux with the fast-evolving tradition, subcultures and behaviors of the diverse region.  

For example, UGG sought to enhance its relevance and engage Gen-Z consumers globally in a compelling and authentic manner. Partnering with Prophet, UGG embarked on a comprehensive segmentation research, delving into multiple APAC countries to craft tailored consumer journey maps that accounted for regional nuances and cultural intricacies. 

Similarly, Prophet’s collaboration with The North Face yielded a unique positioning and localized customer experience for its loyalty program in Greater China. The brand hoped to expand on the types of benefits provided by the program beyond monetary rewards, ensuring representation of the organization’s brand DNA while elevating consumer perceptions, building greater engagement and further differentiating itself from competitors.  

Orchestrating Moments

In Asia, cultural festivities serve as pivotal crescendos for brand narratives. From Chinese New Year’s jubilant fireworks to Diwali’s vibrant rangolis, brands must choreograph their presence amidst these cultural symphonies.  

Singtel, a Singaporean telecommunications conglomerate, has made a tradition of releasing heartwarming short films for Chinese New Year. These films celebrate the power of technology in connecting families and friends. For instance, their 2023 film, “Don’t Worry, Be Hoppy!” showcases the role the telco plays in bringing families and friends together. Continuing the tradition, Singtel launched a three-minute film titled “A Date With Spring” in 2024 which is a nod to the power of technology to inspire and empower all generations. Singtel’s previous Chinese New Year’s series since 2020 collectively garnered over 50 million views to date as their commitment to storytelling resonated strongly with viewers. Furthermore, Singtel recognizes National Day, one of Singapore’s most significant holidays, by creating annual tributes. Last year in 2023, Singtel released a powerful documentary “From Mudflats to Smart Nation”. This 23-minute film explores Singapore’s remarkable journey of innovation and pivotal role of technology in shaping the country into a smart nation. 

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Amidst the flickering neon signs and fragrant incense of Asian markets, growth is a harmonious interplay between brand magic and demand science. Marketers are urged to embrace this fusion, letting Asia’s vibrant rhythm propel you towards prosperity. 

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Nation Branding Beyond Tourism: Key Accelerator to a Country’s Uncommon Growth

Learn how countries can take a long-term and deliberate approach to bring success to nation brand building. 

Recently nation branding has been in the spotlight, with countries like Singapore and Saudi Arabia leveraging soft power to elevate their nation’s brand, with varying levels of success. 

Taylor Swift played six sold-out shows in Singapore as part of her Eras Tour. Not only is Singapore estimated to generate $370 million USD in revenue from the shows, it has successfully put itself on the world map, courtesy of videos of Swift’s backup dancer shouting out Singlish phrases on stage, and Swift’s boyfriend – NFL Super Bowl champion Travis Kelce – talking about Singapore’s sights and food on his podcast.  

Saudi Arabia hosted the much-anticipated boxing match between Anthony Joshua and Francis Ngannou and will host another blockbuster between Tyson Fury and Oleksandr Usyk to crown the first undisputed heavyweight champion since 2000. Beyond boxing, Saudi Arabia’s Public Investment Fund (PIF) caused shockwaves when it launched LIV Golf, a men’s professional golf tour to rival the well-established PGA Tour in 2022 and lured many of the best men’s golfers. These lucrative events are part of Saudi Arabia’s efforts to realize Vision 2030, to be a vibrant society, a thriving economy, and an ambitious nation. 

Nation Branding Goes Beyond Tourism

Just like consumer goods, nations can be branded and marketed to audiences. Brands are a critical driver of growth. And nations, like any business, need to be constantly building, nurturing, and refining their brands, or risk losing relevance and competitiveness. 

What often comes to mind when it comes to a nation’s branding is its tourism campaigns. Think “Malaysia, Truly Asia”, “Amazing Thailand, Always Amazes You”, or Australia’s “Come and Say G’Day”. 

But nation branding goes beyond a tourism campaign or slogan. When done right, it is a long-term and holistic masterplan across key economic sectors, infrastructure, talent, education and culture. 

In an increasingly fractured and uncertain world where the flow of capital, talent and commerce is being re-cast, it has never been more important for nations to get their branding right and take control of how they are perceived by locals, tourists, investors and partners.

Take two countries in different regions demonstrating the success of a long-term and clear plan in their nation branding – Estonia and Singapore. 

Estonia: A Connected Society 

Since resuming independence in 1991, Estonia developed a clear ambition to be a digital society. Investing heavily in digital infrastructure, it has become the first e-State with the e-Estonia program, where 99% of public services are digitally managed and available online, ranging from taxes, parking, prescriptions, voting and more.  

To facilitate its status as a successful technological start-up hub, Estonia introduced a range of initiatives to attract skilled talent. It simplified the immigration processes for foreign talent hired (e.g. exemptions from immigration quota for non-EU nationals), offers startup and digital nomad visas, and offers services by Work in Estonia program (e.g. free international recruitment consultation over Skype) to ensure hiring and providing work for foreign talent is as simple as possible for businesses. 

As a result, Estonia ranks #1 in unicorns per capita in Europe, and Tallinn was named the most intelligent community in 2020. 

Singapore: An Innovation-Driven Economy Hub 

Singapore launched its “Passion Made Possible” brand in 2017, indicating a shift from being an investment-driven economy to one led by innovation. Through targeted investments, it has established itself as a leading regional hub in high-growth areas such as financial services, technology, digital and sustainability. To boost its pool of tech talent with a special focus on Artificial Intelligence (AI), Infocomm Media Development Authority (IMDA) is collaborating with other governmental partners including SkillsFuture Singapore and private sector associations such as SGTech and Singapore Computer Society, to help companies equip their employees with AI skills. IMDA also launched a $22.4 million USD fund in 2022 to support researchers in developing new innovative green computing solutions. 

As a regional hub of innovation, Singapore boasts 25 unicorns (the highest in the region) and accounts for 56% of total venture capital deal volume across the six largest Southeast Asian economies in 2022. 

A Nation’s Brand Must Be a Reflection of Its People’s Identity

While it is important to develop a long-term vision and master plan, a nation’s brand cannot be created in isolation. It must reflect the identity of its people, culture, heritage and history. 

In addition to its investment in high-growth areas such as technology and sustainability, Singapore has made sure that its brand reflects its culture and heritage. It launched the Made with Passion initiative in 2020 to give local lifestyle brands greater access to local and international audiences with innovative new experiences. These experiences, such as creating Peranakan-inspired coasters, are one method by which Singapore celebrates its rich multicultural heritage. Food is also key to Singapore’s brand. As an Indian newspaper described it, “If eating was a national sport, Singaporeans would ace it”. Singapore’s brand as a culinary destination is evident in both the prestigious cuisine (e.g. hosting two editions of Asia’s 50 Best Bars awards, boasting 55 restaurants with a Michelin star), and the local fare found in hawker centers. 

New Zealand is another example of nation branding that is true to its people and culture. Known for its unspoiled nature and greenery, cleanliness, high standards of living, and robust governance, New Zealand is a brand associated with trustworthiness, honesty, transparency, and passion for protecting its land. This guardianship of the land and its people reflects indigenous Māori culture and values. 

A Nation’s Brand Starts With a Purpose

As a first step, nations that are considering a re-brand need to define and clearly articulate their ambition. This serves as their North Star and guides their decision-making around what their core beliefs are, what benefits they wish to deliver to their people, and what key areas they want to focus on. 

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While it can be difficult to develop a nation’s brand, taking a long-term and deliberate approach pays off. Nations need to follow a process, be targeted and deliberate in their investments for the brand to deliver meaningful impact to the nation and their people. We have already seen countries such as Saudi Arabia, Singapore, South Korea, Estonia, and New Zealand reap the benefits of building a brand that is holistic, cohesive, long-term and true of its people, culture, and heritage. 

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Two Ways to Operationalize Your Portfolio Strategy for Market Growth 

In this article, we provide actionable recommendations of how the demand-to-growth landscape can be operationalized for driving tangible growth. 

As competition intensifies and consumers grow increasingly fragmented, brands today must find ways to identify a precise pathway for growth. A successful growth strategy relies on a meticulously crafted portfolio strategy that acknowledges growth sources from layered perspectives. It shouldn’t merely react to present market dynamics but also anticipate future shifts in demand. 

To accomplish this, it’s critical to construct the demand-to-growth landscape, which serves as a pivotal initial step for companies to reach their growth ambitions. 

Define the Portfolio Strategy with a Demand-to-Growth Landscape 

In a previous article, we introduced the demand-to-growth landscape (hereinafter referred to as demand landscape), a systematic study that decodes category opportunities, and how it is best used to shape portfolio strategy, inform brand positioning and refine product portfolio. 

Operationalize the Portfolio Strategy to Accelerate Growth  

After developing a robust portfolio strategy using the demand landscape, leaders must then pinpoint the strategic anchor points within their categories for execution. Bill Gates once aptly stated, “The most brilliant strategy won’t lead to success unless it’s executed effectively.” This rings especially true in today’s business landscape, where marketers are required to show measurable results with every investment.  

Depending on the business and industry, the best way to operationalize and execute the portfolio strategy might look different. Here, we highlight two key applications: 

Application 1: Managing Consumer Segments Through the CRM  

The approach below offers an effective solution to companies aiming to utilize CRM effectively to manage strategic consumer segments from end to end.  

Leveraging the CRM: For companies heavily involved in digital and direct-to-consumer (DTC) channels, particularly in the apparel and beauty sectors where customer loyalty and retention plays a vital role, the CRM system is an indispensable tool. However, marketers often struggle with the vast amount of unorganized customer data, unable to capitalize on the valuable assets to drive meaningful engagements. Incorporating the portfolio strategy could offer a unique solution. 

Evaluating the Portfolio Strategy: A portfolio strategy enabled by the demand landscape analysis unveils how different brands under a business portfolio should capture different consumer segments. It’s crucial to strengthen the value exchange between these brands and their designated consumer segments, in order to guide consumers toward purchasing the brands and products designed for them. Throughout this process, brands must take an agile and iterative approach to ensure investments yield the desired outcomes by establishing effective methods for measuring progress and learning from efforts. But how? 

This is where the CRM system and the portfolio strategy come together. To effectively achieve the aforementioned goals, it is imperative to map the strategic consumer segments of the demand landscape against existing CRM data, i.e., tagging each individual consumer with the corresponding segment.  

Once each customer profile is categorized into its respective strategic consumer segment, brands are able to monitor segment growth by analyzing CRM data, thus indicating the effectiveness of the portfolio strategy and its execution.  

Advanced organizations may also synchronize digital and e-commerce efforts to customize product recommendations and content marketing to each customer based on the portfolio strategy (i.e., brand, product, and proposition relevant to each individual), thus accelerating strategy execution. 

Approach 2: Landing Portfolio Strategy at Retail Channels Through OBPPC 

This approach is particularly critical for companies in the consumer packaged goods (CPG) sector, where navigating diverse consumer needs and a complex retail environment is paramount. With the demand landscape approach, companies can formulate a portfolio strategy aimed at capturing distinct consumer segments and consumption occasions. However, they must also differentiate themselves at the moment of truth to meet the unique preferences of diverse shoppers within each channel. 

Hence, there is an opportunity to bridge the demand landscape and the Occasion Brand Price Pack Channel (OBPPC) models. The OBPPC framework was initially introduced by Coca-Cola to enhance on-channel execution. In essence, this model ensures that companies cater to varying shopper needs by offering the appropriate brands, packages, and price points within target channels. By providing a tailored assortment, more consumers can find satisfaction, and the company can strategically shift the demand curve for those who are less price-sensitive. 

All shoppers are different. They have different values and different preferences which lead to different price elasticities. We can create value by recognizing the differences in purchase occasions, and by offering a unique assortment of brands, packages and price points for each channel they are served by.

The Coca-Cola Company

Bridging the demand landscape with the OBPPC model offers a robust approach to operationalizing the portfolio strategy.  

By systematically following these steps, companies can effectively align their portfolio strategy with consumer demand and channel dynamics, maximizing opportunities for success in the marketplace. 

Contributors: John Wu, Associate; Yang Yu, Associate

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A strategy holds significance only when it seamlessly transitions into execution. With a well-defined demand landscape and portfolio strategy, marketers excel at implementing the strategy in an iterative way that will achieve sustainable and transformative growth. For consumer brands, depending on their industry, leveraging the portfolio strategy to manage consumer segments through the CRM and landing it at retail channels through OBPPC will be the two most effective approaches. 

Need help identifying your brand’s demand-to-growth landscape and operationalizing your portfolio strategy? 

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Unlocking Sustainable Growth in the Middle East: Key Priorities for CEOs   

As the region witnesses remarkable strides in its non-oil economy, we outline four priorities CEOs must adopt now to balance challenges with potential.   

In the fast-changing landscape of the Middle East, strategic investments for sustainable growth and resilience are paramount. With notable advancements in the non-oil economy, diverse sectors are opening up new opportunities for development. The region’s robust economic diversification efforts are positioning it as a leading hub for growth. Organizations need to think holistically as they balance challenges against potential. Those who make the right bets now, navigating those complexities, will yield results that mitigate risks, lead to progress in efficiency and sustainability and improve their employer reputation. 

CEOs should make sure these four priorities are high on their lists:  

1. Navigating EU Green Deal to Unlock Expansion Opportunities   

Many organizations in the MEA are eying market expansion into Europe, which means they must comply with the EU Green Deal that passed in May last year. Some of these issues, of course, are about regulatory mandates. Businesses must invest in sustainability measures to avoid market access challenges. From a compliance standpoint, organizations entering the European market must adhere to the stringent environmental regulations outlined in the deal. Many of these focus on carbon emissions and energy efficiency, which are crucial for market entry.   

But expansion requires thinking beyond regulations. European institutions favor businesses aligned with Green Deal goals. Consumers also prefer businesses that highlight sustainable practices. So do potential employees. Tapping into that environmentally conscious consumer segment means companies should emphasize the many ways they are transitioning to a green economy. Take every opportunity to expand and highlight ways the enterprise focuses on renewable energy, clean technologies and sustainable practices.   

Forward-thinking companies will recognize the EU Green Deal as a two-way street, offering abundant possibilities for transferring technology and innovation. Look for ways to collaborate with European counterparts to foster new solutions. Middle Eastern businesses that can leverage partnerships to enhance their competitiveness in the European market will have a smoother entry into European markets than those that go it alone.   

2. Embracing Sustainability as a Catalyst for Growth  

With international, national and local mandates growing more explicit, it’s easy to continue to view sustainability efforts as a costly drag on profits. That’s short-sighted. For businesses to grow, they need to replace that thinking, enhancing business ecosystems by aligning growth strategies with sustainability.  

Sustainable practices nurture growth. They create a level playing field with companies around the globe and enhance brand reputation. They help attract and retain talent. Middle East businesses can contribute to a greener future and strengthen their resilience and competitiveness by combining growth and sustainability planning.  

In seeking a holistic blend of these initiatives, businesses can look at the bigger universe they operate in, promoting partnerships and interconnectedness. Planning for a future dependent on and interacting with other companies, governments, and community groups makes aligning growth goals with sustainability in clear and measurable ways easier. Goals should encompass carbon reduction and eco-friendly product development.   

3. Fostering Local Growth Amidst Saudi Arabia’s Megaproject Surge  

So many changes are underway in the largest economy in the Arab world that it’s hard to keep up. In keeping with its sweeping Vision 2030, the Kingdom of Saudi Arabia has stepped up public relations, marketing and communications efforts and is emerging as a top global destination. Last year, the country welcomed more than 100 million tourists, a milestone it had hoped to reach by 2030. That’s a jump of 56% from 2019 and 12% from 2022.  

It has also won plenty of global attention for megaprojects, like NEOM, a $500 billion megacity under development.  

That’s all crucial for the growth of KSA. Yet there seems to be a growing gap in providing sustainable projects that benefit the local population against massive megaprojects. This gap leaves plenty of room for businesses to launch initiatives, better positioning them in this important market, including:   

  • Prioritize local hiring of talent in both skilled and unskilled positions, contributing to job creation and economic empowerment.   
  • Support skill development initiatives and training programs that enhance the capabilities of the local workforce.   
  • Start infrastructure development projects throughout the value chain, which will connect to the vast business needs of megaprojects.  

4. Use Influencers and AI for Human-Centred Marketing  

Using artificial intelligence to power personalization and content creation is a trend that is as big in the Middle East as it is everywhere else. So is the importance of influencer marketing, particularly among larger corporations, and AI makes it possible to dramatically increase its reach.   

We are all for efficiency gains from thoughtfully deployed machine thinking. Yet as companies invest more in technologies, like GenAI for marketing and advertising, a crucial consideration for the Middle East emerges: How can companies maintain a human-centric focus? While consumers in the region are increasingly open to digital options, they’re wary of impersonal bots. They crave a human touch. That means companies need to find a delicate balance that preserves the creativity inherent in human behavior and the next generation of marketing. Even as companies step up investments in AI, they need to run all marketing solutions through customer-centric frameworks. Efficiency can’t come at the expense of genuine human connection.  

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The MEA region’s business and investment landscape faces a pivotal moment, demanding strategic investments and holistic approaches to overcome challenges and seize opportunities. Embracing diversification, sustainability, and innovation, enables businesses to flourish in this dynamic environment, fostering a sustainable and more resilient future for the region. 

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Return to Growth: A Corporate Earnings Summary 

After a year of deep cuts and belt-tightening, recession fears have given way to confident resilience. 

The past four years have been tumultuous, with executives, across industries, forced to navigate market-wide headwinds, high-interest rates and a weakening labor market. Thankfully, the recession many feared, never materialized. Yet, leaders prepared for the worst, with 2023 widely considered the “Year of Efficiency.” Companies minimized and cut costs, optimized productivity and — at times — restructured their organizations to get closer to the market and remain above water.  

However, the tide is shifting, and 2024 is widely regarded as a return-to-growth year in which resiliency will reign supreme. To better understand what is behind this sense of optimism, Prophet analyzed over 50 corporate earnings reports from some of the world’s largest businesses, across industries. 

Our research found that last year’s “doing more with less” strategy paid off for most organizations, creating 85% year-over-year growth in net income across the companies studied. That’s a drastic improvement from similar research we conducted last year, which found a 22% decrease in earnings in 2022. 

Now that companies have optimized their organizations, they are getting back to the basics of growth. They are investing in flexible growth strategies that can endure beyond cost-cutting initiatives and efficiency maneuvers, and, thus, 2024 is shaping up to be the “Year of Resiliency.” 

Five Top Learnings From This Pivotal Earnings Season 

Leaning into Growth, Once Again 

“Efficiency” and “budget cuts” were the flash words that bounced around in the first half of 2023. Now, “innovation” and “expansion” are center stage. This earnings cycle saw exciting announcements for new products, services and experiences that transcend traditional industry boundaries.  

In retail, for example, Target announced Target Circle 360, its new paid membership program. It is pulling a page out of Amazon’s and Walmart’s playbooks and living up to CEO Brian Cornell’s promise of “making sure that we make Target a growth company again.” After Walmart’s year of optimizing, it witnessed a significant 23% year-over-year growth burst in e-commerce sales, bolstered by the announcement of a new B2B purchasing site, Walmart Business. 

Others are also expanding their portfolio of offerings and innovating their go-to-market strategies. Apple is rolling out a new B2B service platform, Apple Business Connect. Pfizer is extending its expertise (and brand) beyond respiratory as it goes deeper into oncology. And Peloton is launching “Peloton for Business.” These expansions represent the beginning of an accelerating trajectory toward growth.  

Embracing GenAI as a Strategic Growth Lever 

Almost all the companies in Prophet’s study say GenAI is a top priority, playing a role in driving not just efficiency but sustainable growth. Major technology players are paving the way, both as exemplars of “moving from talking about AI to applying AI at scale” within their business to launching new products like Microsoft Copilot, Google Gemini, and Amazon Rufus that allow other industries to use AI to power growth.  

EdTech company Chegg is embracing GenAI by developing automated, higher-accuracy question-and-answer services. In entertainment, DraftKings is using GenAI to lower customer acquisition costs and improve its targeting capabilities across its marketing efforts, resulting in it raising its 2024 revenue guidance. In the energy sector, GenAI has helped ExxonMobil leverage automated deep-sea drilling and optimize its widely dispersed field assets, helping it beat earnings expectations. 

To be clear, GenAI faces challenges, with mounting social concerns — and lawsuits — tied to privacy and cybersecurity issues. And then, there are the massive costs associated with training, upskilling and managing new systems. While introducing new technologies into an organization is not new news, GenAI is at a scale that requires massive paradigm shifts for most companies to maximize its positive impact while minimizing the downsides mentioned.  

Harnessing Customer-Centricity to Fuel World-Class Experiences 

Companies with the most substantial potential to break through increasingly competitive interconnected marketplaces are discovering ways to harness technologies to enhance customer-centricity, establish deeper levels of relevance and deliver unmatched value. 

In healthcare, CVS Health realized 11.9% revenue growth by harnessing advanced analytics, machine learning, and process automation to predict customer needs and generate tailored care services, such as its ExtraCare loyalty experience. It provides personalized health and beauty products, and members can choose “benefits that best fit their needs.” MetLife uses advanced technologies to create personalized insurance products that cater to specific customer needs and risk profiles. United Health Group, Walgreens and Cigna are all leveraging technologies to coordinate value-based care, enhance digital offerings and improve the patient experience. As a result of these investments, every healthcare company in Prophet’s analysis beat analyst estimates for revenue and earnings in the fourth quarter. 

In transportation, Ford Motor Company brought in a former Apple executive, Peter Stern, to help adapt to the changing EV landscape and build customer experiences through Ford+. CEO Jim Farley describes that hire as “transformational for this strategically vital part of our business.” 

In another way to get closer to customers, GE HealthCare is acquiring MIM Software to complement Predix, its industrial manufacturing cloud platform. MIM Software’s AI and analytical capabilities across practices are reshaping the possibilities of precision care for patients and providers, enabling GE to “meet customers’ most complex and pressing needs, today and into the future,” says CEO of MIM Software Andrew Nelson, proving once more how customer-driven solutions continue to elevate experiences.  

Driving Next-Generation Employee Value Propositions 

It is no secret the workplace has vastly changed as executives grapple with the COVID-induced remote-hybrid debate, the repercussions of mass lay-offs and quiet quitting and the undeniable risks posed by rapid automation. Executives in Prophet’s analysis believe their talent are the critical lynchpin to driving the transformative growth most are seeking. Accordingly, many companies are backing up their claims with significant investments and shifts in compensation, development and employee well-being. 

The Home Depot’s 2023 decision to invest approximately $1 billion in annualized compensation for its frontline, hourly associates — even in a down year — illustrates the importance of nurturing what it considers its key differentiator: the “Orange Aprons.” This strategic move underscores the company’s recognition that maintaining a satisfied, skilled, and motivated workforce is essential for navigating economic uncertainties and securing sustained growth. It is paying off, too, with meaningful improvement in attrition rates and an increase in its customer service score by 600 basis points. 

In leisure, Hilton adapted to the changing dynamics of work by launching the innovative “Hilton Work Anywhere” initiative. By enabling corporate employees to work remotely from its global network of hotels, Hilton taps into the growing demand for flexibility and remote work opportunities. Comparatively, Cisco focused on building external economic resilience by partnering with global HR services company Randstad to equip over 25 million people with digital skills through Cisco’s Networking Academy. Such partnerships and reskilling programs are pivotal in powering the future of innovation, growth and global competitiveness. 

Moving to Profitable Sustainability Impact 

While sustainability has continued to be a top priority for consumers, more companies in Prophet’s analysis are now proving that “doing the right thing” isn’t the only benefit of pushing an innovative sustainability agenda. For instance, building materials and provider Holcim set a goal of achieving 100% renewable energy in U.S. operations by 2050, and its eco-friendly solution ECOPact concrete, now accounts for 19% of Holcim’s ready-mix net sales. The company is also “driving fast-paced growth in circular construction” through its waste-minimizing ECOCycle practice, helping it differentiate and grow as a leader in sustainable construction. 

Eastman Chemical is working to solidify its position as “a leader in creating a circular economy,” capitalizing on customer demand and growth opportunities by replacing plastics with recycled-content-made products and innovative molecular recycling facilities.  

By embedding sustainability into their core growth strategies and moving beyond 2030 or 2040 Net-Zero Carbon commitments, companies are addressing pressing environmental challenges and positioning themselves as forward-thinking leaders in their respective industries, setting a new standard for corporate responsibility and innovation…and driving sustainable growth. 

Acknowledgments: Jason Tan, Jane Lee, Zach Lipkin, Mae Mourtisen, Will Littlejohn, Erik Muenster 

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The cost-cutting, optimization and efficiency-grabbing efforts of 2023 have set the stage for a new and potentially powerful growth year. Many companies are at an inflection point, moving from a reactionary state to focusing on the future. Business leaders must have a long-term strategy to position themselves for sustainable, transformative and purposeful growth. They need to bring new products, services and experiences to market, keep AI at the forefront of their agenda, invest in their people across all dimensions of well-being, and fully integrate sustainability into their business model. Hopefully, when we return to you a year from now, we will be writing about the Year of Accelerated Growth! 

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A Formula for Kickstarting Behavioral Change and Creating Lasting Organizational Habits   

Unlock the secrets to organizational change with Behavior Kickstarters. Learn how rapid experiments can catalyze cultural shifts and drive impactful transformation.  

We’ve all been there. We start the year with the best of intentions, convinced that this time will be different. However, as life’s demands and our ingrained habits exert their influence, our resolve weakens. Despite multiple attempts to restart, within a few months, we find ourselves reverting to familiar patterns.  

And it’s no different in the workplace – in fact it’s much harder. Beyond the demands of their job, employees must also fight against the pull of the organizational system. A pull that is so strong that eventually most change efforts are pulled back to ‘the way things are done around here’ and ultimately fail. An IMD global study of 500 executives found that only 50% of attempts to change employee behavior are successful. So, in short, change in a busy, complex organization is hard. 

So how do you overcome these powerful forces to successfully change behavior and build new habits? 

We believe that change happens through doing, not talking. Moving from words to action. You can’t just click your fingers and suddenly become more innovative, creative and collaborative. Humans don’t work like that. You must poke a stick into the organizational system and be intentional about creating change.  

The first step in this magical process is to start really, really small. 

Behavior Kickstarters Formula 

Behavior Kickstarters are rapid experiments designed to activate new behaviors and catalyze cultural shifts. Using a mix of behavioral science and experimentation techniques, our Behavior Kickstarters create a safe space for people to experiment with, and ultimately adopt new behaviors and build new habits. They establish the right conditions for people to try, fail, learn and grow. 

While people are wonderfully different and unique, human behavior has followed consistent patterns since the dawn of time. Not only are we programmed to follow the path of least resistance, but our endorphins also encourage us to seek out the things that are satisfying. And we’re social beings, where the pull of the crowd can have a significant impact on our behavior and decisions. In other words, we only change our behavior when it is easy, feels good or when people we admire are doing it.  

Our Behavior Kickstarter formula ensures the right ingredients are present for driving behavior change.  

  • Trigger – Make it obvious – Something that signals the need to start, gets your attention and shows the need to take action. 
  • Motivation – Make it attractive – Create an image in the mind of the user that makes them want to change. 
  • Ability – Make it easy – The easier a behavior is to do, the more likely it is to be done.  
  • Reward – Make it satisfying – If it feels good and has a satisfying ending, we’re more likely to repeat it in the future and form a habit. 

While this formula helps us change in the immediate term, we also need to consider how we form new habits to embed the change. This is where experimentation comes in.  
 

Unlocking Organizational Change Through Experimentation  

Experimentation isn’t reserved for labs or innovation teams – it can be a powerful mechanism to drive sustained organizational change. Teams can use it to become more adaptive and to create a safe environment that allows people to try new behaviors and fail, and to apply learnings from their failures to change their approach and try again. Supporting this idea, our Catalysts research, How to Build an Adaptable Organization that Thrives During Uncertainty, identified ‘lowering the cost of experimentation’ as one of the five ways to build an adaptive organization. 

The concept of experimentation is deeply ingrained in all of us. We just don’t apply it in an organizational context. Dave Snowden, founder and chief scientific officer of Cognitive Edge, sums it up beautifully, “The engine of all life on this planet has always changed in the same way. We try things, notice positive and negative patterns, amplify what’s working, minimize what isn’t.” Yet, despite being ingrained in us, the number of people who use experimentation is comparatively small. People seem to struggle to apply it to their day-to-day lives, meaning its potential is often left untapped. Michael Schrage, author of The Innovators Dilemma, uses a wonderful model for driving its adoption whilst solving real business challenges. Teams of five, each generate and test a solution to solve one of five challenges, over five weeks. The winning idea receives financial backing to be taken forward. Along with generating great ideas to solve real problems, this approach creates a fun, engaging way to understand the power of experimentation. 

Like Schrage’s method, putting experimentation into practice with our Behavior Kickstarters is simple. We recommend a timeframe  (~2-4 weeks) and at the end of that period, we reflect on how it went, what went well and whether we achieved the desired outcomes – using this data to define what could we do differently next time. Then, if needed, we make changes to the Kickstarter and go again!  

A Kickstarter can take many forms. Ideally, it will be designed so it fits seamlessly into the employee’s day-to-day world – as part of existing meetings or a regular routine, like a morning cup of coffee, for example.  

  • Trying to make your teams feel recognized? Thank You Thursday: Every Thursday, send a short thank you note, acknowledging the efforts of an individual or team for that week (for something big or small). 
  • Trying to increase psychological safety? Poke Holes in This: Before sharing an idea, ask the team ‘Please poke holes in this’, opening yourself up to helpful feedback and encouraging vulnerability. 
  • Trying to increase collaboration? Don’t Rush Into it: At the start of your weekly meeting,  spend five minutes with everyone sharing what they did over the weekend, building relationships outside of just work commitments. 

Prophet’s research tells us that, by targeting the “Soul” of the organization, we can activate and accelerate key transformation levers, such as ‘Developing meaningful mechanisms to enable employees to adapt.’ We mentioned earlier that beating the organizational system is difficult and most organizations don’t have these change mechanisms in place. Behavior Kickstarters do exactly that, equipping employees with a powerful method to grow, adapt and thrive in the ever-changing world we now find ourselves in.  

The crucial part of this comes not in running the Kickstarter, but in equipping your teams with the permission and ability to constantly repeat it over time to embed the new behavior until it becomes a habit. Wendy Wood, author of Good Habits, Bad Habits estimates that we spend 50% of our time unconsciously repeating actions we’ve already taken. By intentionally repeating the Kickstarter, you train your brain by practicing new behaviors and building the pathways needed to create daily habits. For this instance, fake it until you make it – or in behavioral terms, fake it until you become it. 

The idea of ‘fake it until you become it’ is not new, in fact, it is over 2,000 years old. Aristotle believed that people could not simply know, or study, how to be virtuous. To be virtuous, they must practice virtuous actions: first by imitating others who demonstrate virtuous actions and then turning those imitated behaviors into habits by performing them every day. You practice the behavior you want and then one day you turn around and discover you’re not performing the behavior, you’re living it. 

The beauty of this transformational process is its ripple effect, fostering further change not only with individuals but also throughout the broader organization. On an individual level, the success of initiating the first Behavior Kickstarter inspires you to do it again (following our Behavior Kickstarter formula: we only change when it feels good). If you’re trying to get fit, and you feel good after your first 5km run, you might try 7km, or 10km and then maybe eventually a half marathon. At an organizational level, it can quickly become contagious. The stories of others successfully changing their behavior become the currency of change, creating a sense of envy that motivates others to do the same. Just like when we witness a good deed, like someone helping an elderly person with their shopping, we’re far more likely to carry out a good deed ourselves later that day.  

“All big things come from small beginnings. The seed of every habit is a single, tiny decision”

James Clear, Author of Atomic Habits 

To fuel a change movement across the organization,  it’s helpful to share stories of how others are running their Behavior Kickstarters to reinforce these successes with recognition and celebration. This inspires others to initiate their own Kickstarter, setting off a chain reaction that swiftly builds into a potent force for change.  

Change shouldn’t be isolated to those with ‘people’ or ‘culture’ in their title, or limited to company offsites and launches for new corporate values. The beauty of Behavior Kickstarters is that they’re accessible to everyone. Facilitating the adoption of new behaviors is a sure-fire way to accelerate change across your organization. 

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Some questions for you to reflect on: How is your organization living your values? How are you living them? Are there new behaviors or ways of working that are not currently being lived? 

If you’re interested in finding ways to create a safe space, enhance collaboration, or ignite innovation and creativity, our experts are ready to help.  

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Tailoring Employee Experience for Asia’s New Workforce 

Adopting an employee-centric strategy for the unique workforce in Asia. 

Hybrid work was supposed to be the future, but now with economic headwinds and continuing uncertainties, existing employee experience strategies are crumbling, even in Asia. Despite robust economic growth, concerns persist over potential slowdowns in major Asian markets, such as China and Japan, and their cascading effects on regional trade, investment and talent mobility. Companies are walking on a monetary tightrope due to rising interest rates and global inflation. This has prompted companies to reevaluate their talent needs and prioritize adaptability and digital skills. Additionally, stressors like rising living costs and geopolitical instability have caused a high mental health risk for employees in Asia. 

The Imperative of Fostering an Employee-Centric Strategy 

In Asia’s complex business landscape, adopting an employee-centric strategy is a crucial imperative for organizations seeking uncommon growth. 

Staying Competitive in a Tight Labor Market 

In the competitive labor market in Asia, the war for talent will rage stronger than ever. The 2023 Hays Asia Salary Guide revealed talent and skill shortages as the foremost challenges confronting employers across Asia, driving a shift towards skills-based talent acquisition as a pivotal strategy for thriving in this fiercely competitive landscape.  

Addressing Specific Employee Needs in Asia 

Despite experiencing increased productivity during the remote work era, the modern Asian workforce faces a multitude of challenges, including burnout, cultural disconnection, and diminishing job satisfaction. This is evidenced by a PwC report revealing that only 57% of respondents in Asia are satisfied with their current jobs. 

Prioritizing flexibility and work-life balance remains crucial, alongside the need for proficiency in regional languages and a deep understanding of cultural and regulatory landscapes. Encompassing nearly 50 countries each with its own distinct cultural and linguistic tapestry, many roles in Asia are inherently regional which means there is a higher demand for businesses to foster agility and cultural intelligence.  Employees find themselves at a crossroads, balancing demands from both Asian and Western headquarters. The ability to comprehend and align with the priorities and expectations of each, while advocating for the unique needs of Asian markets, becomes a critical skill. Moreover, fostering positive cross-cultural collaboration is not merely an option but a necessity for organizations to thrive in the intricate Asia business ecosystem. 

Creating Employee-Centric Offerings 

As business optimism confronts talent challenges in Asia, organizations must prioritize employee-centric strategies, emphasizing cultural awareness, flexibility and work-life balance. By addressing the intricacies of the Asia talent landscape, businesses can attract, retain, and engage with the right talent, ultimately driving long-term and sustainable business growth. 

The New Equation: Flexibility + Connection = Wellbeing 

Prophet’s research highlights flexibility and connection as the main levers for achieving holistic employee well-being. This means adapting to diverse needs and fostering meaningful connections aligned with the company’s mission. The dynamic synergy forms a reciprocal relationship: as businesses prioritize well-being, individuals become dedicated stewards, fostering a harmonious cycle of mutual care and organizational success. 

1. Highlighting Flexibility Through Cultural Transformation 

Mercer’s Global Talent Trends (GTT) Study 2023 reveals that only half of Asia-based employers currently offer flexible work options for all employees, trailing behind the global average of 56%. In fact, a substantial 68% of APAC workers expect their companies to offer hybrid work arrangements in the next year. Hence it is crucial for companies in Asia to create a sense of openness and flexibility in the workforce environment that caters to employees’ emotional needs and changing expectations.  

Cultural transformation programs are an effective avenue to cultivate meaningful experiences and internal trust among employees. A key step to bridge the gap between employee expectations and company commitments is by defining a clear and compelling Employee Value Proposition (EVP). 

For example, Singapore’s UOB (United Overseas Bank) has crafted an EVP centered around care, growth, and trust, actively prioritizing employee well-being. The leadership at UOB aims to strike a harmonious balance between purpose and equilibrium, ensuring employee motivation while allowing ample time for personal pursuits. Notably, their implementation of a two-day remote work arrangement in 2022 resulted in increased employee morale and loyalty without any adverse effects on productivity.  

 Coming out of the pandemic, an Asian luxury travel retailer saw the need to revamp their EVP in 2023. This initiative aimed to boost employee engagement, reignite culture and establish a more powerful employer brand to attract and retain top talent. To achieve these goals, they focused on creating a unified message that clearly defined the company’s values and emphasized the opportunities for growth, learning and exploration that aligned with both the employees’ purpose and the overall brand strategy. 

With a well-defined EVP, businesses can then implement effective internal communication and culture programs to create meaningful and engaging experiences. Many companies in Asia are actively undertaking culture transformation initiatives to enhance employee experience. 

2. Deepening Connection Through Collaboration 

In hybrid and digital workplaces, employees are increasingly seeking meaningful connections, not just with their peers, but also with the leadership. In addition to creating interesting and engaging employee experiences, businesses must also recognize the pivotal role of collaboration in enhancing connections. Deepened collaboration not only enables employees to forge stronger bonds, fostering a sense of unity and shared purpose but also cultivates a profound connection to the core values and mission of their company. This, in turn, leads to a collective commitment to overarching goals, enhancing workplace camaraderie. 

Prophet’s research, The Collaborative Advantage, not only sheds light on Southeast Asian companies’ heightened appreciation for collaboration but also reveals a noticeable lag in execution compared to their counterparts in other regions. The report introduces the Collaboration Flywheel, a comprehensive framework guiding leaders in prioritizing and expediting efforts to strengthen collaborative capabilities. Key tenets of this framework include: 

  • Coordination: Illustrate the linkage between an employee’s individual effort and the organization’s purpose. Guide individuals by showcasing “what good looks like” and granting decision-making authority to lower levels, leveraging digital transformation as an enabler. 
  • Cooperation: Align incentives across the organization, balancing differing definitions of what a “good” incentive is. Consider cultural differences when creating incentives and foster a shared mindset that collectively achieves unified goals. 
  • Collaboration: Focus on the process, not just outcomes, to make room for more agile thinking, allowing synergies and interdependencies to form. Empower employees through a bottom-up, test-and-learn approach, encouraging them to challenge the status quo and implement new, fresh ways of thinking. 

Singapore’s Government Technology Agency (GovTech) provides an excellent case study. GovTech embraces a flat organizational structure that grants partial autonomy to its sub-divisions. This structure enhances agility in market response and allows robust collaboration among its divisions. When recruiting new talent, GovTech prioritizes individuals with strong learning agility, ensuring that its workforce remains adaptable and forward-thinking. This internal culture of collaboration enables it to remain competitive among other tech players. As a result, in 2022, 99% of citizens surveyed expressed satisfaction with Singapore’s government digital services. Moreover, GovTech ranked third place in Singapore’s Best Workplaces in Technology List in 2023. 

Additionally, representation and diversity are becoming a pivotal piece in strengthening connections within an organization. According to the EY Asia-Pacific Belonging Barometer 2022, employees’ sense of belonging is enhanced from 22% to 70% when they perceive diversity and strong leadership in Diversity, Equity, and Inclusion (DEI) initiatives. In the dynamic Asian talent market, where individuals are increasingly prioritizing DEI considerations, companies risk losing valuable employees if they fail to invest in creating an inclusive workplace. It is essential for organizations to articulate DEI mission statements and define how these principles align with their core values.  

For example, Microsoft Asia Pacific has demonstrated a commitment to DEI through initiatives like the “Code; Without Barriers” program which certifies women in AI across the region, pushing the company further to continue their mission of empowering Asia Pacific’s digital ambition. Similarly, Ørsted Taiwan exemplifies an award-winning approach to DEI by embedding it in their business strategy, with a goal to achieve a gender ratio of 6:4 by 2030. Right now, over half of the Asia Pacific senior management team comprises females. Moreover, Ørsted Taiwan fosters strong connections through initiatives like utilizing the “Insights Discovery” psychometric tool and implementing “GenderIN” sessions to encourage discussions and guide policymaking, contributing to a high level of employee satisfaction. 

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As companies confront unique workforce challenges in Asia, tailoring employee experiences is of paramount importance. By honing in on the simple equation: Flexibility + Connection = Wellbeing, organizations can shape their vision and build a roadmap for gradual implementation. Prophet can help define a distinctive strategy and frame flexibility policies to make them relevant to your organization. 

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5 Archetypes of Digital Business Models 

One of the most effective ways to achieve uncommon growth is through business model innovation. For digital business models, this requires creating a revenue model that is in service of your value proposition. 

If you look at your phone’s home screen, you will see many digital business models in the form of frequently used apps: Uber, LinkedIn, Teams and Spotify to name a few. Each of these companies has a native digital business model in contrast to non-native digital companies that use digital as a sales channel (e.g., Walmart). In this article, we dive into the five archetypes of digital business models with examples to show the tradeoff decisions and investments required to be successful in each archetype. 

At Prophet, we define a business model as how a company creates, delivers and captures value with five main components: 

Two components of this model can be used to deconstruct the five archetypes of digital business models: (1) the value proposition, what you offer in the form of products and services and (2) the revenue model, how you commercialize those offerings.  

Digital Business Model Decision Tree  

Value Proposition 

The first decision when designing a digital business model is how you will create value. Will you own your own supply or aggregate third-party suppliers? Marketplaces connect suppliers with buyers for products and services. Content providers create or aggregate content that can be read, listened to or watched. Infrastructure providers’ own enablers needed to get things done. 

Revenue Model 

The next decision is how you will monetize your offering. Will it be paid for by end users or by a third party? Marketplaces are primarily monetized through transaction fees charged to both suppliers and buyers. In addition, marketplaces can charge suppliers to advertise or offer their users subscriptions to reduce transaction fees. For content providers, the decision to monetize through advertising versus subscription depends on scale. An advertising model reduces costs on end users, enabling scale and network effects. A subscription model provides more predictable revenue from each user and locks in revenue for longer cycles. For infrastructure providers, an on-demand model can provide a cost-based competitive advantage but requires a huge investment in upfront costs. Infrastructure as a subscription provides more funding for ongoing product development and innovation. 

An Example of Each Digital Business Model: 

1. Commission-based Marketplace (e.g., Uber) 

In this business model, suppliers and advertisers pay to access customers in a marketplace. The main revenue drivers are transaction fees, listing fees and advertising. This business model requires creating a flywheel between multiple parties. Uber’s business model includes a DTC service and separately a B2B and B2D (business to driver/courier/biker) marketplace. In Winning Through Platforms, Prophet Senior Partner, Ted Moser describes the advantage Uber gained through creating a unique “customer coalition edge” among multiple parties: riders and delivery recipients, ride and delivery drivers, app developers, advertisers, restaurants and regulatory bodies. By bringing together such a robust customer coalition, Uber can provide more value to each customer group, while also diversifying their revenue sources and differentiating from competitors. Uber attracts more drivers than Lyft by offering revenue from rides, deliveries and in-car advertising. By attracting more drivers, Uber can also attract more riders to their platform with greater ride availability. That, in turn, has the flywheel effect of bringing on more suppliers – including advertisers, developers and restaurants. As a result of these moves, Uber commands a 20x higher valuation than Lyft today at $128B. 

2. Content via ads (e.g., Google) 

Back in 1999, Google’s founders considered two ways of monetizing: subscription and advertising. The subscription model they considered was $20 a year paid by the end user. For that same user, the advertising market would value them at an average of $52 per year in 1999, so 2.5x more. A Wharton paper found that platforms monetized via advertising versus subscription are more likely to invest in content moderation to expand the user base to large, heterogeneous populations. A central tension in the ad-supported business model is that polarizing content is good at getting attention, but over time, it can lead users to be less satisfied and engage less. In addition, advertisers require a high level of stability to ensure that their ads do not appear next to harmful content.  

3. Content via Subscription (e.g., Netflix) 

Platforms with a subscription model must balance growth alongside increasing the willingness of the user base to pay. There is fierce competition for recurring revenue, so subscription players must continue to increase the value that they provide to end users each month. For Netflix, it became difficult to continue to show growth once almost everyone in the U.S. had access to a Netflix log-in through their family and friends. In November 2022, Netflix launched a new ad-supported tier, and a few months later, Netflix began cracking down on password sharing outside of households to force new customers into the ad-supported tier. Netflix also raised the price of the non-ad-supported tier, which forced customers to choose between paying more each month or allowing Netflix to monetize their viewing with advertisers. These moves caused Netflix to have its strongest quarterly increase in customer gains in three years.  

A note that these first three business models all fit into Ben Thompson’s definition of Aggregators: companies that have a direct relationship with users, zero marginal cost for serving those users, and decreasing acquisition cost as the user base grows. This theory explains how platforms have radically reshaped industries by making control of demand much more important than control of supply. For example, Uber has been much more successful than taxi services by focusing on the end-user relationship rather than trying to control the supply of drivers. In the digital world, attention is a scarce commodity rather than a finite resource, so it is much more important to own the end-user relationship than it is to own the supply.  

4. Subscription Access to Infrastructure (e.g., Microsoft Office).  

In this business model, customers pay per seat to access a service. This provides monthly or annual recurring revenue in the form of licensing fees. It is a capital-intensive model that requires ongoing investment in product maintenance as well as product development to retain and acquire new customers. Microsoft recently debuted Copilot, an AI-enabled enhancement to the suite of Office products to differentiate itself from workplace software competitors such as Google. Another form of competitive differentiation is being the one-stop shop for everything. Microsoft is essentially the operating system of work, with all the necessary applications and services – from communication to email to productivity and presentation tools, in one place and connected to each other. Microsoft does not have to have the best single product for anything, for example, many employees prefer Slack to Teams, but by integrating everything in the cloud, the switching costs are too high to opt out of Microsoft’s ecosystem for a single app.  

5. On-Demand Access to Infrastructure (e.g., Amazon Web Services) 

This business model requires significant upfront fixed costs to have capacity available on demand. One of the most in-demand types of digital infrastructure today is Nvidia’s H100 AI chips, which are used to power ChatGPT and other AI apps. Crusoe Energy, a digital infrastructure provider, raised $200M to buy these chips and is forecasted to make half of that investment back in just one year by charging companies for access. The biggest incumbent in the digital infrastructure model is Amazon Web Services, which Jeff Bezos has likened to the utility companies of the early 1900s. Back then, factories had to build their own power plants to generate electricity, but once the factories could buy electricity from a public utility, they no longer needed to invest in expensive private electric plants. In this analogy, electric plants are physical computing technology. By providing servers and storage in the cloud, companies can reduce their fixed investment in computing and storage and pay for what they use, and when they need to use more, it is easy to scale up the capacity. Today, the cloud platform industry is valued at $180B, with AWS controlling a third of the market. In addition, AWS is responsible for about three-quarters of Amazon’s total operating profits. 

Overview of revenue attractiveness and investment required for each business model: 

These are just a few examples of companies that fit into the five digital business model archetypes. We have partnered with a number of clients to design and launch new business models as well as to innovate existing business models in the face of change. 

Creating a new Digital Business Model: 

  • We helped a hardware manufacturer create a new on-demand access to infrastructure business model by embedding smart home technology into their physical products, enabling our client to become an essential infrastructure and service provider for home security players. 
  • We worked with a healthcare association to transform its business model from membership fees to a new digital learning platform that prepares healthcare workers for the jobs of the future.  

Evolving a Digital Business Model: 

  • We partnered with a content provider to quantify the impact of transitioning from a subscription-only model to an ad-supported model.  
  • We worked with a telecommunication provider to pivot from a usage-based model to a monthly subscription. 

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A Guide to Kickstarting AI Integration in Your Product Organization 

Discover the transformative power of Generative Artificial Intelligence (Gen AI) in reshaping product development and customer experiences.

In the past year, Generative Artificial Intelligence (Gen AI), spearheaded by advanced models like ChatGPT and its counterparts, has revolutionized the customer experience landscape, democratizing intelligent technology as both an interface and an enabler. The rapid proliferation of Gen AI tools underscores a clear imperative: speed is of the essence when it comes to embracing Gen AI.  

Against this backdrop, the significance of AI in product development cannot be overstated. Organizations that leverage Gen AI as a strategic capability in delivering new products have the additional benefit of unlocking new pathways for AI transformation, growth and change. However, amidst the plethora of Gen AI applications and tools (alongside mounting stakeholder requests for AI integration), navigating this new terrain can seem daunting. Yet, the cost of delaying action outweighs the challenges of embracing AI. Its integration requires a paradigm shift, but here are a few actionable kick-starters to usher in opportunities to boost efficiency, effectiveness and innovation, while also addressing the hurdles typically encountered so that product leaders can embark on their AI journey with confidence, clarity and a purposeful approach.

1. Efficiency: Service Operations and Workflow Evaluation 

Efficiency is paramount in today’s fast-paced business landscape and presents an invaluable opportunity to streamline operations. For instance, how can we let Gen AI act as our assistant, adeptly handling cumbersome or repetitive tasks, both at the individual and organizational levels? Imagine not having to write a single product description: with Gen AI at the helm, targeting and performance see significant improvements. Take inspiration from Amazon’s product management team, who seamlessly integrated Gen AI into customer support, effectively managing first/second-level queries, reducing workloads and response times. 

To harness these efficiencies, start by evaluating service operations and workflows, followed by an AI Feasibility Assessment. Prioritize tasks based on their repetitiveness, data availability, scalability and complexity. When prioritizing tasks, consider giving more relevance to those that improve customer time to value. Select one or two pilot cases where appropriate off-the-shelf Gen AI solutions are already available and conduct pilots to assess impact and feasibility. This strategic approach not only optimizes efficiency but also paves the way for transformative change in organizational workflows.  

2. Enhancing Effectiveness: Value Exchange Analysis 

How might the computing power of Gen AI revolutionize approaches to identifying new insights, elevating our creative thinking and strategic decision-making? What if you could leverage Gen AI to analyze user engagement data, uncovering valuable insights into feature improvements and prioritizing them for implementation? Take Citymapper, for instance. This international city travel planning app is used by millions of commuters daily to navigate cities with real-time information. Leveraging data science, the company identified a critical time and route in London underserved by existing transportation options. In response, they established a dedicated private bus route on weekday afternoons to address this gap. By utilizing data collected from their mobile application, they translated insights into a tangible service, enhancing customer experience.

To drive effectiveness in your organization, you should consider embarking on a Value Exchange Analysis exercise to define the value exchanged through your product offering, systems, processes, service partners and customers. Consider what each stakeholder or partner in your ecosystem gives and receives. Visualize these exchanges and explore how Gen AI can maximize value by enhancing efficiencies, reducing errors and proactively recommending new insights, or creating entirely new value propositions. Again, run an AI Feasibility Assessment but instead of focusing on “repetitiveness” focus on “value maximization” potential. Utilize concierge tests to determine the minimum service level for each feature or offering to deliver tangible value. This not only amplifies effectiveness but also fosters a culture of innovation and value creation within the organization.  

3. Driving Innovation: Future-Back Growth 

How can Gen AI drive business model innovation by reconfiguring current assets and capabilities to create entirely new value propositions? With its aptitude for lateral and creative thinking, Gen AI is poised to maximize personalization, attracting previously untapped customer segments. Consider the case of a coffee roasting company that used Gen AI to analyze its customer data alongside market trends to suggest innovative coffee blends, which resulted in boosted sales and customer loyalty. 

To enhance innovation, adopt a future-back growth approach that anticipates and responds to evolving customer expectations. Run a comprehensive trend analysis to identify emerging behaviors and signals of change, laying the groundwork for scenario planning to explore new opportunity areas. Embrace Gen AI tools at every stage, from trend research to product development, to capitalize on its predictive capabilities and ensure alignment with future market demands. By embracing Gen AI-driven innovation, organizations can position themselves as pioneers in shaping the future landscape of their industries.  

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We help our clients leverage Gen AI to discover innovative ways to develop digital and connected products that create customer and business value. This not only fuels growth but equips your people with the necessary skills to design superior experiences and products. It’s essential to recognize that leveraging AI isn’t just about data and technology. Our approach to AI is at the intersection of where data and technology meet human intuition and experience. Our aim is to simplify the complexity and pave the way for a promising future. Your Gen AI adventure awaits. 

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Igniting Growth in 2024: Four Trends to Prioritize for Business Leaders in Asia

Here are the top priorities for CEOs and CMOs to unlock uncommon growth in Asia. 

In 2023, businesses in Asia faced significant challenges, including rising costs, economic uncertainties, and persistent inflation. In 2024, C-suite leaders are confronted with the responsibility of driving growth amid tight marketing budgets and increasing cost pressures. 

With a cautiously optimistic outlook for 2024, what should be the top priorities for CEOs and CMOs in Asia to enhance customer relevance and foster business growth? There are four crucial levers to unlock uncommon growth in the coming year: 

  1. Optimize your investment allocation across the brand funnel with a focus on generating demand to continually drive conversion and loyalty.
  2. Be hyper-focused on your customers – leaders need to shift from a product-centric mindset towards a customer experience-led proposition to capture a larger total addressable market size and customer share of wallet, and shape perception as a market leader. 
  3. Adopt a unified marketing operating model to foster effective collaboration and integrated decision-making across business units. This will not only drive synergies but also uncover untapped areas of growth. 
  4. Harness the power of AI to supercharge your growth – from uncovering customer insights for strategic investment decisions, to enabling personalised and engaging experiences for customers. 

In this article, we delve into these strategic priorities, helping leaders navigate the evolving market. 

1. Stepping up Demand Generation as the Catalyst to Ignite Growth 

In the post-pandemic era, consumer behaviors have become more intricate and diverse, challenging the traditional way of capturing the dynamic nature of the customer journey. C-suite leaders in 2024 must shift toward an agile growth strategy, with a strong emphasis on demand generation. 

It is now crucial for C-suite leaders to concentrate on demand-driven strategies for engagement, leads, and conversions throughout the entire customer journey. This involves creating an efficient channel mix using an agile approach for data strategies and crafting unique experiences to promote loyalty, advocacy, and repeat purchases. Most importantly, this requires a human-centric growth strategy rooted in consumer insights. 

For instance, AB InBev Korea collaborated with Prophet to gain a comprehensive understanding of the Korean beverage market, aligning with consumer needs to identify growth opportunities. This insight-driven approach guided targeted investments in channels and brand activations, stimulating growth within their portfolio. Similarly, a multinational athletic apparel retailer partnered with Prophet to tailor a marketing effectiveness model for APAC. This data-driven strategy enabled informed decision-making, optimizing their marketing mix across the brand funnel and driving demand in a fiercely competitive landscape, ultimately leading to accelerated growth. 

2024 Priority: Leaders must strategically allocate resources to strengthen demand generation, steering growth strategies based on iterative consumer and market insights throughout the customer journey. This shift will enable marketing efforts to be more effectively aligned to generate demand and propel conversion and loyalty. 

2. Strengthening Full-Funnel Customer Experience to Accelerate Conversion  

Amid economic uncertainties, 68% of leaders in APAC prioritize business resilience by emphasizing customer service. The Asian Banker reported that 77% of satisfied customers actively advocate for the brand, underscoring the pivotal role of customer satisfaction in retaining the existing customer base and fostering sustainable growth. 

As CMOs now assume a more influential role in strategic decision-making, a unique opportunity arises to integrate customer experience (CX) into the organization’s DNA, shifting from a product-centric to an experience-led strategy. At the core of this transformative shift, three key principles should be considered: 

A compelling example of how an experience-led transformation can drive tangible growth is Singapore Airlines’ Kris+. Launched in 2020, Kris+ was conceived as a lifestyle rewards program aimed at engaging users beyond their air travel experiences. Going beyond traditional mileage rewards, Kris+ consolidates a diverse array of rewards, privileges and payment options into a single app. This innovative approach not only provides users with additional opportunities to enhance their shopping experiences both during flights and on the ground but also adds substantial value. Singapore Airlines’ potential customer base has expanded, and Kris+ currently stands as a significant revenue driver for the airline, boasting over 2.1 million downloads globally since inception. 

2024 Priority: An experience-led growth strategy extends beyond the realm of bolstering engagement and loyalty. When executed adeptly, it serves as a catalyst for broadening the total addressable market, augmenting customer share of the wallet, and solidifying the brand’s standing as a market leader.  

3. Achieving More With Less Through a Collaborative Operational Model  

The role of CMOs has undergone rapid evolution, with an escalating demand for them to demonstrate Return on Investment (ROI) and contribute significantly to overall revenue. Consequently, CMOs are now more intricately involved in decision-making processes that span various facets of business strategy, including CX, product, sales, and, in some instances, directly managing these areas. 

For CEOs, establishing robust connections between diverse channels, disciplines, and departments within their organizations is paramount. This not only fosters effective collaboration but also ensures seamless decision-making across different business functions. 

Prophet’s Collaboration Flywheel 

Our research suggests that a progressive understanding of collaboration takes place over three phases. Read more. 

In 2022, Prophet played a pivotal role in supporting Cisco Secure’s transformation of its marketing operating model. The primary objective behind this strategic move was to enhance efficiency and collaboration across different functions. The result was a more defined structure among business functions, both regionally and locally, underscoring the effectiveness of strategic alignment in achieving organizational goals. 

Another noteworthy case is Luckin Coffee, one of the fastest-growing retail coffee chains in Asia. The brand, once on the brink of bankruptcy, was committed to optimizing its operational efficiency and quickly turned itself around within just two years, reporting a 7.2 billion RMB revenue in Q3 2023 and an 84.9% YoY growth. One of the key shifts Luckin took was to evolve CMO Fei Yang’s role to CGO, Chief Growth Officer, to oversee revenue growth, demand generation and customer experience on top of marketing. By integrating user operations and brand marketing, Luckin was able to increase its agility in identifying customer needs, innovating products, launching marketing campaigns and accelerating demand. 

2024 Priority: This strategic approach lies in not only the optimization of resource utilization but also the revelation of untapped avenues for growth across the entire business. By breaking down silos and fostering collaboration among different functions, businesses can achieve a holistic and streamlined approach to decision-making, ultimately contributing to business success and resilience. 

4. Harnessing the Power of AI as a Transformative Force

Generative AI (GenAI) technology has swiftly emerged as a transformative force on a global scale, particularly within the APAC region. An IDC study reveals that 70% of C-suite leaders in the APAC region are actively exploring or have already invested in GenAI. In our recent article, we also highlighted how the capabilities of GenAI can be harnessed for marketing effectiveness. However, the stewardship of human insights and brand strategy remains key.  

While many AI technologies are still in their early stages, capitalizing on this momentum requires cultivating a culture of innovation. This involves not only upskilling teams to adeptly harness AI but also addressing prevailing apprehensions and skepticism surrounding its integration. 

Beyond utilizing GenAI for productivity, equipping the workforce with essential AI skills positions them to unlock its potential, extracting valuable insights from extensive customer and market data. C-suite leaders, in particular, are encouraged to strategically implement AI to enhance customer experiences and customize offerings based on the dynamic and evolving needs and behaviors of their customers. 

An example of embracing AI integration is 7-Eleven Japan’s plan to leverage AI in 2024 to generate text and visual content for new products. Grounded in the analysis of store sales data and consumer feedback via social media, this approach is expected to significantly reduce the time needed for product planning and align product distribution with emerging trends. 

Similarly, Disney has been a trailblazer in incorporating technology, utilizing data from wristbands, IoT sensors, and strategically placed cameras around its resorts. This data-driven approach empowers Disney World operators to identify and address overcrowded areas, offering personalized promotions to encourage customers to move to less congested spaces based on their preferences. Looking ahead, the prospect of Disney using GenAI to enhance personalization, such as anticipating customers’ dietary needs before they enter restaurants, adds an exciting dimension to its growth trajectory. 

2024 Priority: As AI technologies continue to advance, it is imperative for organizations to possess a comprehensive understanding of AI, supported by clear guidelines and policies. This ensures the quality and reliability of AI-driven insights, thereby facilitating informed decision-making in an increasingly dynamic business landscape. 

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In 2024, the key to igniting business growth is to prioritize demand generation and shift toward an experience-led customer journey. Moreover, it is crucial for C-suite leaders to drive integrated decision-making and harness AI as a transformative force to ignite growth in today’s competitive business landscape. 

The synthesis of these strategic priorities will be instrumental in defining success and resilience for C-suite leaders who are navigating the complexities of the year ahead. 

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