For previous articles in the “preparing for war” series, click here.
From the moment you go to war, the clock starts ticking. Within weeks, sometimes days, business is being lost. A war of attrition, where the standoff drags on endlessly, is only going to help your competitors. Your strategy needs to force the issue whilst limiting your own damage.
That strategy has three parts, all of which must be in place before you ever fire a shot:
Tightening the screw: Fear of losing share and a desire to be part of any growth are the two forces that will generate a rapid resolution. Plan a series of events and activities to rapidly and inexorably pile pressure on your counterpart to come back to the negotiating table. Consider heavy discounts, national or cross category campaigns or something bigger, but critically, plan a number of such events in close succession to keep your counterpart reactive and off balance.
Buying yourself time: Identify ways to protect two things: your revenues and your customers. Understand which products are loyal (customers will switch retailers for) and which are substitutable (customers will switch brands instead). Plan activity that will drive the right type of switching and build retail stocks to protect against the wrong type.
One eye on the exit: There’s a military maxim that states “no plan survives contact with the enemy”. It can equally be said of negotiation. There’s always a chance that circumstances will change leaving you needing to break off hostilities. Plan for that to happen. A well-managed retreat can avoid looking weak, rebuild trust and retain the moral high ground. An unplanned retreat can be a painful and expensive disaster permanently shifting the balance of power. Always leave yourself the room and opportunity to flip seamlessly into compromise mode.
BOTTOM LINE: Going to war is a long-term play, usually requiring short term sacrifice. Investing in heavyweight activity without one of your biggest partners will clearly give lower returns, but that’s just part of the deal. In this game, more often than not, who dares wins.